# EDGAR Filing Document

**Accession Number:** 0001716621
**File Stem:** 0001437749-25-025933
**Filing Date:** 2025-8
**Character Count:** 377069
**Document Hash:** 00db69efdb14732b1516896de8461431
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-025933.hdr.sgml**: 20250811

**ACCESSION NUMBER**: 0001437749-25-025933

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 102

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250811

**DATE AS OF CHANGE**: 20250811

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Catheter Precision, Inc.
- **CENTRAL INDEX KEY:** 0001716621
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 383661826
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38677
- **FILM NUMBER:** 251202231

**BUSINESS ADDRESS:**
- **STREET 1:** 1670 HIGHWAY 160 WEST
- **STREET 2:** SUITE 205
- **CITY:** FORT MILL
- **STATE:** SC
- **ZIP:** 29708
- **BUSINESS PHONE:** 973-691-2000

**MAIL ADDRESS:**
- **STREET 1:** 1670 HIGHWAY 160 WEST
- **STREET 2:** SUITE 205
- **CITY:** FORT MILL
- **STATE:** SC
- **ZIP:** 29708

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Ra Medical Systems, Inc.
- **DATE OF NAME CHANGE:** 20170908

?xml version='1.0' encoding='ASCII'? vtak20250630_10q.htm

[**Table of Contents**](#toc)

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**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 June 30, 2025**

**OR**

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File No. **001-38677**

---

| |
|:---|
| **Catheter Precision, Inc.** |
| (Exact name of registrant as specified in its charter) |

---

---

| | |
|:---|:---|
| **Delaware** | **38-3661826** |
| **(State or other jurisdiction of**<br> **incorporation or organization)**<br>**1670 Highway 160 West, Suite 205**<br> **Fort Mill, South Carolina** | **(I.R.S. Employer**<br> **Identification Number)**<br>**29708** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

---

| |
|:---|
| **<u>(973) 691-2000</u>** |
| **(Registrant**'**s telephone number, including area code)** |
| **<u>N/A</u>** |
| **(Former name, former address and former fiscal year, if changed since last report)** |

---

Securities Registered under Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class:** | **Trading Symbol(s)** | **Name of each exchange on**<br> **which registered:** |
| Common stock, par value $0.0001 per share | VTAK | NYSE American |

---

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 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, 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 | ☐ |
| 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 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 ☒

As of the close of business on August 4, 2025, the registrant had 23,327,516 of common stock, par value $0.0001 per share, outstanding.

------

[**Table of Contents**](#toc)

**CATHETER PRECISION, INC.**

**QUARTERLY REPORT ON FORM 10-Q**

**<u>**TABLE OF CONTENTS**</u>**

---

| | | |
|:---|:---|:---|
|  |  | **Page(s)** |
| [<u>PART I. FINANCIAL INFORMATION</u>](#part1) | [<u>PART I. FINANCIAL INFORMATION</u>](#part1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>ITEM 1.</u>](#finstmts) | [<u>FINANCIAL STATEMENTS</u>](#finstmts) | [3](#finstmts) |
|  | [<u>Condensed Consolidated Balance Sheets (Unaudited)</u>](#bs) | [3](#bs) |
|  | [<u>Condensed Consolidated Statements of Operations (Unaudited)</u>](#ops) | [4](#ops) |
|  | [<u>Condensed Consolidated Statements of Stockholders</u><u>'</u> <u>Equity (Unaudited)</u>](#se) | [5](#se) |
|  | [<u>Condensed Consolidated Statements of Cash Flows (Unaudited)</u>](#cf) | [6](#cf) |
|  | [<u>Notes to Condensed Consolidated Financial Statements (Unaudited)</u>](#notes) | [7](#notes) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>ITEM 2.</u>](#mda) | [<u>MANAGEMENT</u><u>'</u><u>S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</u>](#mda) | [33](#mda) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>ITEM 3.</u>](#quant) | [<u>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</u>](#quant) | [43](#quant) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>ITEM 4.</u>](#cont) | [<u>CONTROLS AND PROCEDURES</u>](#cont) | [43](#cont) |
| [<u>PART II. OTHER INFORMATION</u>](#part2) | [<u>PART II. OTHER INFORMATION</u>](#part2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>ITEM 1.</u>](#legal)  | [<u>LEGAL PROCEEDINGS</u>](#legal) | [44](#legal) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>ITEM</u> <u>1A.</u>](#risk) | [<u>RISK FACTORS</u>](#risk) | [44](#risk) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>ITEM 2.</u>](#unregistered) | [<u>UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</u>](#unregistered) | [44](#unregistered) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>ITEM 3.</u>](#defaults) | [<u>DEFAULTS UPON SENIOR SECURITIES</u>](#defaults) | [44](#defaults) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>ITEM 4.</u>](#mine) | [<u>MINE SAFETY DISCLOSURES</u>](#mine) | [44](#mine) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>ITEM 5.</u>](#otherinfo) | [<u>OTHER INFORMATION</u>](#otherinfo) | [44](#otherinfo) |
| &nbsp;&nbsp;&nbsp;&nbsp; [<u>ITEM 6.</u>](#exhibits) | [<u>EXHIBITS</u>](#exhibits) | [45](#exhibits) |
|  | [<u>SIGNATURES</u>](#sigs) | [48](#sigs) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2

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[**Table of Contents**](#toc)

**PART I. FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS**

**CATHETER PRECISION, INC.**

**Condensed Consolidated Balance Sheets**

**(in thousands, except per share data)**

---

| | | |
|:---|:---|:---|
|  | ***June 30, 2025*** | ***December 31, 2024*** |
|  | **(Unaudited)** |  |
| **ASSETS** |  |  |
| **Current Assets** |  |  |
| Cash and cash equivalents | $838 | $2873 |
| &nbsp;&nbsp;&nbsp; Trading debt securities | 874 |  |
| Accounts receivable, net | 115 | 70 |
| Inventories | 48 | 33 |
| Prepaid expenses and other current assets | 171 | 316 |
| Total current assets | 2046 | 3292 |
| Property and equipment, net | 79 | 91 |
| Operating lease right-of-use assets, net | 178 | 105 |
| Intangible assets, net | 23252 | 24274 |
| Other non-current assets | 8 | 8 |
| **TOTAL ASSETS** | $25563 | $27770 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **Current Liabilities** |  |  |
| Accounts payable | $804 | $230 |
| Accrued expenses | 1533 | 1548 |
| &nbsp;&nbsp;&nbsp; Short-term notes payable | 26 | 177 |
| &nbsp;&nbsp;&nbsp; Current portion of notes payable due to related parties | 1500 |  |
| &nbsp;&nbsp;&nbsp; Current portion of interest payable due to related parties | 151 |  |
| Current portion of royalties payable due to related parties | 542 | 177 |
| Current portion of operating lease liabilities | 86 | 98 |
| Total current liabilities | 4642 | 2230 |
| Royalties payable due to related parties | 11546 | 9068 |
| Operating lease liabilities | 94 | 13 |
| Notes payable of variable interest entities, net of discount | 1265 |  |
| Notes payable due to related parties |  | 1500 |
| Interest payable due to related parties |  | 61 |
| Deferred tax liability | 1467 | 3141 |
| Total liabilities | 19014 | 16013 |
| **Commitments and contingencies (see Note 16)** |  |  |
| **Stockholders' Equity** |  |  |
| Preferred Stock, $0.0001 par value, 10,000,000 shares authorized |  |  |
| Series A Convertible Preferred Stock, $0.0001 par value, 7,203 shares designated; 0 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series B Convertible Preferred Stock, $0.0001 par value, 3,000 shares designated; 2,229 and 0 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively |  |  |
| Series X Convertible Preferred Stock, $0.0001 par value, 15,404 shares designated; 12,656 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively |  |  |
| Common stock, $0.0001 par value, 60,000,000 shares authorized; 18,861,579 and 8,004,633 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively |  |  |
| Additional paid-in capital | 308295 | 304109 |
| Accumulated deficit | (301506) | (292352) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity attributable to Catheter Precision, Inc. | 6789 | 11757 |
| &nbsp;&nbsp;&nbsp; Non-controlling interest | (240) |  |
| Total stockholders' equity | 6549 | 11757 |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $25563 | $27770 |

---

*See accompanying notes to unaudited condensed consolidated financial statements.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3

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[**Table of Contents**](#toc)

**CATHETER PRECISION, INC.**

**Condensed Consolidated Statements of Operations**

**(in thousands, except per share data)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***For the Three Months Ended June 30,*** | ***For the Three Months Ended June 30,*** | ***For the Six Months Ended June 30,*** | ***For the Six Months Ended June 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| **Revenues** | $212 | $93 | $355 | $175 |
| **Cost of revenues** | 14 | 16 | 25 | 21 |
| **Gross profit** | 198 | 77 | 330 | 154 |
| **Operating expenses** |  |  |  |  |
| Selling, general and administrative | 2881 | 2713 | 6366 | 5369 |
| Research and development | 155 | 81 | 258 | 118 |
| Acquired in-process research and development | 1848 |  | 1967 |  |
| Total operating expenses | 4884 | 2794 | 8591 | 5487 |
| **Operating loss** | (4686) | (2717) | (8261) | (5333) |
| **Other expenses, net** |  |  |  |  |
| Interest income | 3 | 7 | 21 | 40 |
| Interest expense | (67) | (5) | (116) | (8) |
| Change in fair value of royalties payable due to related parties | (1667) | (1504) | (2830) | (1590) |
| &nbsp;&nbsp;&nbsp; Change in fair value of trading debt securities | 10 |  | 10 |  |
| Other expenses, net | (1) | (1) | (1) | (4) |
| Total other expenses, net | (1722) | (1503) | (2916) | (1562) |
| **Loss from operations before income taxes** | (6408) | (4220) | (11177) | (6895) |
| Income tax benefit | (950) |  | (1674) |  |
| **Net loss** | (5458) | (4220) | (9503) | (6895) |
| Less: Net loss attributable to non-controlling interest | (349) |  | (349) |  |
| **Net loss attributable to Catheter Precision, Inc.** | $(5109) | $(4220) | $(9154) | $(6895) |
| **Net loss per share attributable to Catheter Precision, Inc., basic and diluted** | $(0.38) | $(5.57) | $(0.74) | $(9.19) |
| **Weighted-average common shares used in computing net loss per share, basic and diluted** | 13336088 | 757340 | 12341614 | 750130 |

---

*See accompanying notes to unaudited condensed consolidated financial statements.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4

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[**Table of Contents**](#toc)

**CATHETER PRECISION, INC.**

**Condensed Consolidated Statements of Stockholders' Equity**

**(in thousands, except share data)**

**(Unaudited)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  |  |  |  |  |  | ***Total*** |  |  |
|  | ***Series A Convertible Preferred Stock*** | ***Series A Convertible Preferred Stock*** | ***Series B Convertible Preferred Stock*** | ***Series B Convertible Preferred Stock*** | ***Series X Convertible Preferred Stock*** | ***Series X Convertible Preferred Stock*** | ***Common Stock*** | ***Common Stock*** | ***Additional Paid-In*** | ***Accumulated*** | ***Catheter Precision Inc. Stockholders'*** | ***Non-controlling*** | ***Total Stockholders'*** |
|  | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Capital*** | ***Deficit*** | ***Equity*** | ***Interest*** | ***Equity*** |
| **Balance at December 31, 2024** |  | $— |  | $— | **12656** | $— | **8004633** | $— | $**304109** | $**(292352)** | $**11757** | $**—** | $**11757** |
| Stock-based compensation |  |  | *—* |  | *—* |  | *—* |  | 91 |  | 91 |  | 91 |
| Issuance of common stock for vested restricted stock awards |  |  |  |  |  |  | 49999 |  |  |  |  |  |  |
| Issuance of common stock for asset acquisition (see Note 14) |  |  |  |  |  |  | 275000 |  | 113 |  | 113 |  | 113 |
| Issuance of common stock upon release of Prepaid Series Warrants (see Note 11) |  |  |  |  |  |  | 939000 |  |  |  |  |  |  |
| Net loss |  | *—* | *—* | *—* | *—* | *—* | *—* | *—* | *—* | (4045) | (4045) |  | (4045) |
| **Balance at March 31, 2025** |  |  |  |  | **12656** |  | **9268632** |  | **304313** | **(296397)** | **7916** |  | **7916** |
| Stock-based compensation |  |  | *—* |  | *—* |  | *—* |  | 98 |  | 98 |  | 98 |
| Issuance of common stock for vested restricted stock awards |  |  |  |  |  |  | 50001 |  |  |  |  |  |  |
| Issuance of common stock for asset acquisition (see Note 14) |  |  |  |  |  |  | 1000000 |  | 280 |  | 280 |  | 280 |
| Issuance of common stock upon release of Prepaid Series Warrants (see Note 11) |  |  |  |  |  |  | 2157000 |  |  |  |  |  |  |
| Issuance of preferred stock and warrants under the May 2025 PIPE Financing, net of issuance costs |  |  | 3000 |  |  |  |  |  | 2034 |  | 2034 |  | 2034 |
| Issuance of common stock upon the ATM Offering, net of issuance costs |  |  |  |  |  |  | 4183589 |  | 1570 |  | 1570 |  | 1570 |
| Conversion of preferred stock |  |  | (771) |  |  |  | 2202357 |  |  |  |  |  |  |
| Issuance of VIE shares to non-controlling interest |  |  | *—* |  | *—* |  | *—* |  |  |  |  | 109 | 109 |
| Net loss |  | *—* | *—* | *—* | *—* | *—* | *—* | *—* | *—* | (5109) | (5109) | (349) | (5458) |
| **Balance at June 30, 2025** |  | $**—** | **2229** | $**—** | **12656** | $**—** | **18861579** | $**—** | $**308295** | $**(301506)** | $**6789** | $**(240)** | $**6549** |

---

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  |  |  |  |  |  | ***Total*** |  |  |
|  | ***Series A Convertible Preferred Stock*** | ***Series A Convertible Preferred Stock*** | ***Series B Convertible Preferred Stock*** | ***Series B Convertible Preferred Stock*** | ***Series X Convertible Preferred Stock*** | ***Series X Convertible Preferred Stock*** | ***Common Stock*** | ***Common Stock*** | ***Additional Paid-In*** | ***Accumulated*** | ***Catheter Precision Inc. Stockholders'*** | ***Non-controlling*** | ***Total Stockholders'*** |
|  | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Capital*** | ***Deficit*** | ***Equity*** | ***Interest*** | ***Equity*** |
| **Balance at December 31, 2023** | **4578** | $— |  | $— | **12656** | $— | **702662** | $— | $**296902** | $**(275709)** | $**21193** | $**—** | $**21193** |
| Stock-based compensation | *—* |  |  |  | *—* |  | *—* |  | 6 |  | 6 |  | 6 |
| Conversion of Series A Convertible Preferred Stock | (875) |  |  |  |  |  | 54678 |  |  |  |  |  |  |
| Net loss | *—* | *—* |  | *—* | *—* | *—* | *—* | *—* | *—* | (2675) | (2675) |  | (2675) |
| **Balance at March 31, 2024** | **3703** |  |  |  | **12656** |  | **757340** |  | **296908** | **(278384)** | **18524** |  | **18524** |
| Stock-based compensation | *—* |  |  |  | *—* |  | *—* |  | 13 |  | 13 |  | 13 |
| Net loss | *—* | *—* |  | *—* | *—* | *—* | *—* | *—* | *—* | (4220) | (4220) |  | (4220) |
| **Balance at June 30, 2024** | **3703** | $— |  | $— | **12656** | $— | **757340** | $— | $**296921** | $**(282604)** | $**14317** | $**—** | $**14317** |

---

*See accompanying notes to unaudited condensed consolidated financial statements.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5

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[**Table of Contents**](#toc)

**CATHETER PRECISION, INC.**

**Condensed Consolidated Statements of Cash Flows** 

**(in thousands)** 

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | ***For the Six Months Ended June 30,*** | ***For the Six Months Ended June 30,*** |
|  | ***2025*** | ***2024*** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| Net loss | $(9503) | $(6895) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| Depreciation and amortization | 1060 | 1048 |
| Stock-based compensation | 189 | 19 |
| Change in fair value of royalties payable due to related parties | 2830 | 1590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of trading debt securities | (10) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax benefit | (1674) |  |
| Acquired in-process research and development | 1967 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of discount on note payable issued in connection with an asset acquisition | 10 |  |
| Changes in operating assets and liabilities: |  |  |
| Accounts receivable | (45) | 32 |
| Inventories | (25) | (19) |
| Prepaid expenses and other current assets | 145 | 211 |
| Operating lease right-of-use assets and lease liabilities | (4) |  |
| Current portion of royalties payable due to related parties | 14 | 7 |
| Accounts payable | 361 | 363 |
| Accrued expenses | (15) | 1 |
| Interest payable due to related parties | 90 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest accrued on notes payable of variable interest entities | 9 |  |
| Net cash used in operating activities | (4601) | (3639) |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp; Purchases of acquired in-process research and development | (6) |  |
| Purchases of property and equipment | (17) | (67) |
| Net cash used in investing activities | (23) | (67) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from issuance of Series B Convertible Preferred Stock and other equity-classified warrants, net of issuance costs | 1170 |  |
| &nbsp;&nbsp;&nbsp; Proceeds from issuance of common stock under ATM, net of issuance costs | 1570 |  |
| &nbsp;&nbsp;&nbsp; Proceeds from notes payable due to related parties |  | 650 |
| Payments on notes payable | (151) | (184) |
| &nbsp;&nbsp;&nbsp; Payments on deferred financing costs |  | (309) |
| Net cash provided by financing activities | 2589 | 157 |
| **NET CHANGE IN CASH AND CASH EQUIVALENTS** | (2035) | (3549) |
| **CASH AND CASH EQUIVALENTS, beginning of period** | 2873 | 3565 |
| **CASH AND CASH EQUIVALENTS, end of period** | $838 | $16 |
| **SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION** |  |  |
| Cash paid for interest | $6 | $4 |
| **SUPPLEMENTAL SCHEDULE OF NONCASH FINANCING AND INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp; Property and equipment reclassified from inventories | $10 | $— |
| &nbsp;&nbsp;&nbsp; Note payable of variable interest entities issued in connection with an asset acquisition | $1246 | $— |
| Fair value of common stock issued in connection with asset acquisitions | $393 | $— |
| &nbsp;&nbsp;&nbsp; Consideration for asset acquisition included in accounts payable | $213 | $— |
| Consideration for asset acquisition included in non-controlling interest | $109 | $— |
| &nbsp;&nbsp;&nbsp; Fair value of trading debt securities obtained as consideration for the Series B Convertible Preferred Stock and other equity-classified warrants | $864 | $— |
| &nbsp;&nbsp;&nbsp; Operating right-of-use asset obtained in exchange for new operating lease liabilities | $118 | $— |

---

*See accompanying notes to unaudited condensed consolidated financial statements.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6

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[**Table of Contents**](#toc)

**CATHETER PRECISION, INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)** 

**Note *1.* Organization and Nature of Operations** 

***The Company***

Catheter Precision, Inc. ("Catheter" or the "Company") was incorporated in California on *September 4, 2002,* and reincorporated in Delaware in *July 2018.* 

On *January 9, 2023,* Catheter entered into the Amended and Restated Agreement and Plan of Merger (the "Merger Agreement") with Catheter Precision, Inc. ("Old Catheter"), a privately held Delaware corporation. Under the terms of the Merger Agreement, Old Catheter became a wholly owned subsidiary of Catheter, together referred to as the Company, in a stock-for-stock merger transaction (the "Merger"). The Company's current activities primarily relate to Old Catheter's historical business, which comprises the design, manufacture and sale of new and innovative medical technologies in the field of cardiac electrophysiology ("EP").

One of the Company's *two* primary products is the VIVO System, which is an acronym for View into Ventricular Onset ("VIVO" or "VIVO System"). VIVO is a non-invasive imaging system that offers *3D* cardiac mapping to help with localizing the sites of origin of idiopathic ventricular arrhythmias in patients with structurally normal hearts prior to EP procedures. The VIVO System is commercially available in the European Union and has been placed at several hospitals in Europe. United States Food and Drug Administration ("FDA") *510*(k) clearance was received, and the Company began commercial sales of VIVO in *2021* in the United States.

The Company's *second* and newest primary product, LockeT® ("LockeT"), is a suture retention device indicated for wound healing by distributing suture tension over a larger area in the patient in conjunction with a figure of *eight* suture closure and is intended to temporarily secure sutures and aid clinicians in locating and removing sutures efficiently. In addition, LockeT is a sterile, Class I product that was registered with the FDA in *February 2023,* at which time initial shipments began to distributors. Clinical studies for LockeT began during the year ended *December 31, 2023.* These studies are planned to show the product's effectiveness and benefits, including faster wound closure and patient ambulation/discharge, potentially resulting in higher procedural volumes and lower costs for the healthcare provider and/or insurance payor. This information is intended to provide crucial data that will improve marketability by establishing the effectiveness of the medical device and a competitive advantage. The Company recorded its *first* commercial sale of LockeT to distributors in *May 2024.* In *April 2025,* a US patent for the product was granted by the United States Patent and Trademark Office.

The Company's product portfolio also includes the Amigo® Remote Catheter System (the "AMIGO" or "AMIGO System"), a robotic arm that serves as a catheter control device. The Company owns the intellectual property related to AMIGO, and this product is under consideration for future research and development of a generation *2* product.

On *February 17, 2025,* the Company formed a new subsidiary, Cardionomix, Inc. ("Cardionomix"), to acquire certain assets previously held by Cardionomic, Inc. ("Cardionomic"), a *third* party entity that has ceased operations. The Company owns 82% of Cardionomix's issued and outstanding common stock. The Company's Chief Executive Officer and Chairman of the Board of Directors and certain of his affiliates own 12% of the subsidiary's issued and outstanding common stock. The remaining 6% of the subsidiary's outstanding common stock was issued to certain *third* parties as finder's fees in connection with the asset acquisition.

On *May 5, 2025,* Cardionomix acquired certain assets primarily related to Cardionomics' Cardiac Pulmonary Nerve Stimulation ("CPNS") System, which represents a novel technology for the late-stage treatment of acute decompensated heart failure. The CPNS System consists of electrical simulation via a temporary catheter inserted into the pulmonary artery that targets the root cause of heart failure by stimulating the autonomic cardiac nerves to restore autonomic balance. The CPNS System is in development and has yet to obtain regulatory approval. Cardionomix plans to use these assets to complete the pivotal clinical trial and obtain necessary regulatory approvals from the FDA for use and commercialization.

On *June 20, 2025,* the Company formed a new subsidiary, KardioNav, Inc. ("KardioNav"), to pursue the advancement, development, and commercialization of electrophysiology mapping technologies. The Company assigned certain intellectual property related to the VIVO System which it is *not* currently developing to KardioNav, while Chelak iECG ("Chelak"), an unrelated *third* party, assigned certain intellectual property related to technology designed to interface with implanted cardiac devices to facilitate improved pre-ablation mapping and localization of arrhythmogenic tissue. The intellectual property assigned by Chelak consisted solely of patents and related know-how at a conceptual stage, the development of which has *not* yet been advanced into a developed technology or product. KardioNav intends to integrate the Company's VIVO mapping intellectual property with Chelak's patents to develop a system that interfaces with implanted cardiac devices to enable improved pre-ablation mapping and more precise localization of arrhythmogenic tissue. Research and development activities are in the planning phase.

The Company owns 57% of the KardioNav's issued and outstanding common stock, while Chelak owns 33% of the subsidiary's issued and outstanding common stock. The Company's Chief Executive Officer and Chairman of the Board of Directors and certain of his affiliates own the remaining 10% of the subsidiary's issued and outstanding common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *7*

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***Reverse Stock Split***

On *July 3, 2024,* at the annual meeting of stockholders of the Company, the stockholders approved an amendment to the Amended and Restated Certificate of Incorporation of the Company (the "Amendment"), which included a decrease in the authorized common stock and authorization for the Board, in its discretion, to effect a reverse stock split within specified parameters. The Amendment was effective *July 15, 2024,* reducing the authorized common stock to 30 million shares and effecting a reverse stock split in which each *ten* (10) shares of the Company's common stock, par value $0.0001 per share, issued and outstanding immediately prior to the effective time, automatically combined into *one* (*1*) validly issued, fully paid and non-assessable share of the Company's common stock, par value $0.0001 per share.

*No* fractional shares were issued as a result of the reverse stock split. Stockholders who would otherwise have been entitled to receive a fractional share were entitled to receive their pro rata portion of the net proceeds obtained from the aggregation and sale by the exchange agent of the fractional shares resulting from the reverse stock split (reduced by any customary brokerage fees, commissions and other expenses). All references to share and per share amounts for all periods presented in the unaudited condensed consolidated financial statements have been retrospectively restated to reflect this reverse stock split. All rights to receive shares of common stock under outstanding securities, including but *not* limited to, warrants and options, were adjusted to give effect to the reverse stock split. Furthermore, proportionate adjustments were made to the per share exercise price and the number of shares of common stock that *may* be purchased upon exercise of outstanding warrants and stock options granted by the Company, and the number of shares of common stock reserved for future issuance under the Company's Equity Incentive Plan.

On *January 13, 2025,* at the Special Meeting of Stockholders of the Company, the stockholders approved an amendment to the Amended and Restated Certificate of Incorporation of the Company, which included an increase in the authorized capital stock to 70 million shares, consisting of 60 million shares of common stock and 10 million shares of preferred stock.

***Going Concern***

The unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business, and do *not* include any adjustments to reflect the possible future effects on the recoverability and classification of assets or amounts and classification of liabilities that *may* result from uncertainty related to its ability to continue as a going concern.

The Company has incurred recurring net losses from operations and negative cash flows from operating activities since inception. For the *six* months ended *June 30, 2025*, the Company incurred $9.5 million in net losses and used $4.6 million in cash for operating activities. As of *June 30, 2025*, the Company had an accumulated deficit of $301.5 million, working capital deficit of $2.6 million, and cash and cash equivalents of $0.8 million.

Management expects operating losses and negative cash flows to continue for the foreseeable future, and the Company needs to raise additional capital until it is able to generate revenues from operations sufficient to fund its research, development, and commercial operations. On *May 12, 2025,* the Company entered into a Securities Purchase Agreement for a private placement with three institutional investors. Pursuant to the Securities Purchase Agreement, the Company sold an aggregate of (i) 1,500 PIPE Units and (ii) 1,500 additional shares of a new series of the Company's preferred stock, designated Series B Convertible Preferred Stock, par value $0.0001 per share. Each PIPE Unit consisted of: (i) one share of Series B Convertible Preferred Stock and (ii) Series L Warrants to purchase approximately 2,858 shares of common stock at an exercise price of $0.50 per share. As consideration for the PIPE Units and Series B Convertible Preferred Stock, the Company collected $1.5 million in cash and *two* secured Convertible Promissory Notes of QHSLab, Inc. (the "QHSLab Notes") previously held by *one* of the investors, before deducting placement agent fees and offering expenses of $0.4 million (see Note *11,* Equity Offerings). On *May 19, 2025,* the Company entered into an At Market Offering Agreement (the "ATM Agreement") and, through *June 30, 2025,* issued 4,183,589 shares of common stock in connection with sales pursuant to the ATM Agreement in exchange for gross proceeds of $1.7 million before deduction of commissions and offering expenses of $0.2 million.

Management estimates that based on the Company's liquidity resources, there is substantial doubt about the Company's ability to continue as a going concern within *12* months from the date of issuance of the unaudited condensed consolidated financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared on the basis of the Company continuing to operate in the normal course of business and do *not* reflect any adjustments to the assets and liabilities related to the substantial doubt of its ability to continue as a going concern.

Management plans to raise additional capital through public or private equity or debt financing to fulfill its operating and capital requirements for at least *12* months from the date of the issuance of the unaudited condensed consolidated financial statements. However, the Company *may not* be able to secure such financing in a timely manner or on favorable terms, if at all. Furthermore, if the Company issues equity securities to raise additional funds, its existing stockholders *may* experience dilution, and the new equity securities *may* have rights, preferences and privileges senior to those of the Company's existing stockholders.

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

***Principles of Consolidation***

The unaudited condensed consolidated financial statements of the Company include the accounts of the Company, Old Catheter, Cardionomix and KardioNav. All intercompany transactions have been eliminated in consolidation.

***Basis of Presentation***

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") applicable to interim financial statements. The Financial Accounting Standards Board ("FASB") establishes these principles to ensure financial condition, results of operations, and cash flows are consistently reported. Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative nongovernmental GAAP as found in the FASB Accounting Standards Codification ("ASC"). Certain footnotes and other financial information normally required by U.S. GAAP have been condensed or omitted in accordance with instructions to Form *10*-Q and Article *8* of Regulation S-*X.* In the opinion of management, such statements include all adjustments which are considered necessary for fair presentation of the unaudited condensed consolidated financial statements of the Company. The operating results presented herein are *not* necessarily an indication of the results that *may* be expected for the year. The unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements included in its Annual Report on Form *10*-K for the year ended *December 31, 2024*, as filed with the Securities and Exchange Commission ("SEC") on *March 31, 2025.*

***Use of Estimates***

The preparation of the unaudited condensed consolidated financial statements 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 unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The Company's unaudited condensed consolidated financial statements are based upon a number of estimates including, but *not* limited to, the allowance for credit losses, evaluation of impairment of long-lived assets, valuation of long-lived assets and their associated estimated useful lives, reserves for warranty costs, evaluation of probable loss contingencies, fair value of royalties payable due to related parties, fair value of contingent consideration recorded in connection with a business combination or an asset acquisition, fair value of trading debt securities, fair value of warrants issued, and fair value of equity awards granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *8*

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***Concentrations of Credit Risk***

The Company's financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company generally maintains cash and cash equivalent balances in various operating accounts at financial institutions with high quality credit ratings in amounts in excess of federally insured limits of *$250,000.* As of *June 30, 2025*, the Company had deposits in financial institutions in excess of federally insured limits of $0.5 million. The Company has *not* experienced any losses related to its cash and cash equivalents and does *not* believe that it is subject to significant or unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The Company has *no* significant off-balance sheet risk, such as foreign exchange contracts, option contracts, or other hedging arrangements.

The Company extends credit to customers in the normal course of business. Concentrations of credit risk with respect to accounts receivable exist to the full extent of amounts presented in the unaudited condensed consolidated balance sheets. The Company does *not* require collateral from its customers to secure accounts receivable.

The Company had 3 customers that individually accounted for *10%* or more of total revenues included in the condensed consolidated statements of operations for the *three* and *six* months ended *June 30, 2025.* 3 customers represented 11%, *36%* and *15%* of total revenues for the *three* months ended *June 30, 2025* and 3 customers represented 38%, 13%, and *13%* of total revenues for the *six* months ended *June 30, 2025.* The Company had 3 and 5 customers that individually accounted for more than *10%* of total revenues for the *three* and *six* months ended *June 30, 2024.* 3 customers represented 30%, 50%, and 12% of total revenues for the *three* months ended *June 30, 2024* and 5 customers represented *17%, 19%,* 10%, 16%, and 27% of total revenues for the *six* months ended *June 30, 2024.*

The Company had 2 and 3 vendors that individually accounted for *10%* or more of accounts payable included in the condensed consolidated balance sheets as of *June 30, 2025* and *December 31, 2024*. 2 vendors represented 57% and 10% of accounts payable as of *June 30, 2025* and 3 vendors represented 15%, 28%, and 18% of accounts payable as of *December 31, 2024.*

The Company had 5 and 4 customers that individually accounted for more than *10%* of total accounts receivables included in the condensed consolidated balance sheets as of *June 30, 2025* and *December 31, 2024.* 5 customers represented 19%, 30%, 23%, 12%, and 10% of accounts receivable as of *June 30, 2025* and 4 customers represented 13%, 19%, 46%, and 16% of accounts receivable as of *December 31, 2024*.

The Company is *not* dependent on any single supplier for critical components.

***Reclassifications***

Certain prior period financial statement amounts have been reclassified for consistency with the current period presentation. These reclassifications had *no* effect on our previously reported results of operations or accumulated deficit. In the current period, the Company (i) separately discloses interest income and interest expense in the condensed consolidated statement of operations and (ii) presents royalty fees incurred and payable based on actual sales of products as well as future, estimated royalty payments payable within the next *12* months under current portion of royalties payable due to related parties in the condensed consolidated balance sheets. For comparative purposes, amounts in the prior periods have been reclassified to conform to current period presentations.

***Segment Reporting***

The Company operates in one reportable segment, which includes all activities related to the marketing, sales, and development of medical technologies in the cardiac electrophysiology field. While the commercial efforts that coordinate the marketing, sales, and distribution of these products are organized by geographic region and product, all of these activities are supported by a single corporate team and distribution channels. The determination of a single reportable segment is consistent with the condensed consolidated financial information available and regularly reviewed by the Company's chief operating decision maker ("CODM").

The CODM is the Company's chief executive officer, who reviews and evaluates condensed consolidated net loss reported on the condensed consolidated statements of operations for purposes of assessing performance, making operating decisions, allocating resources and planning and forecasting for future periods. As the Company's operations are managed at the consolidated level, there are *no* differences between the measurement of the reportable segments' profit or losses and the Company's condensed consolidated statements of operations. Segment asset measures are *not* used as a basis for the CODM to evaluate the performance of or to allocate resources to the segment.

The following table summarizes segment revenues and significant segment expenses included in the measure of segment profit or loss (consolidated net loss) reviewed by the CODM (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | ***For the Three Months Ended*** | ***For the Three Months Ended*** | ***For the Six Months Ended*** | ***For the Six Months Ended*** |
|  | ***June 30,*** | ***June 30,*** | ***June 30,*** | ***June 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Revenues | $212 | $93 | $355 | $175 |
| Less: |  |  |  |  |
| Cost of revenues | 14 | 16 | 25 | 21 |
| Acquired in-process research and development expense | 1848 |  | 1967 |  |
| Depreciation and amortization expense | 529 | 526 | 1060 | 1048 |
| Stock-based compensation expense | 98 | 13 | 189 | 19 |
| Salaries and benefits expense | 1310 | 1060 | 2624 | 1721 |
| Professional fees | 317 | 374 | 1044 | 1046 |
| Research and development expense | 155 | 81 | 258 | 118 |
| Interest income | (3) | (7) | (21) | (40) |
| Interest expense | 67 | 5 | 116 | 8 |
| Change in fair value of royalties payable due to related parties | 1667 | 1504 | 2830 | 1590 |
| Change in fair value of trading debt securities | (10) |  | (10) |  |
| Income tax benefit | (950) |  | (1674) |  |
| Other segment items (1) | 628 | 741 | 1450 | 1539 |
| **Segment net loss** | (5458) | (4220) | (9503) | (6895) |
| **Reconciliation of net loss** |  |  |  |  |
| Adjustments and reconciling items |  |  |  |  |
| **Consolidated net loss** | $(5458) | $(4220) | $(9503) | $(6895) |

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(*1*) Other segment items include other expenses, net, consulting fees, investor relations and SEC fees, insurance fees, and other selling, general, and administrative expenses. Other selling, general, and administrative expenses primarily consist of travel expenses, computer and information technology expenses, and rent expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *9*

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***Cash and Cash Equivalents***

The Company considers all highly liquid investments purchased with an original maturity date of *ninety* days or less at the date of purchase to be cash equivalents. Cash and cash equivalents primarily represent funds invested in readily available checking and money market accounts.

***Fair Value Measurements***

Fair value represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants and is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. A *three*-tier fair value hierarchy is used to identify inputs used in measuring fair value as follows:

Level *1* - Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

Level *2* - Inputs other than the quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and

Level *3* - Unobservable inputs that are supported by little or *no* market data, which require the Company to develop its own assumptions.

Cash equivalents, prepaid expenses, accounts receivable, accounts payable, and accrued expenses are reported on the condensed consolidated balance sheets at carrying value, which approximate fair value due to the short-term maturities of these instruments. The carrying value of our short-term notes payable and notes payable due to related parties approximate the instruments' fair value due to the short-term maturities of these debt instruments. Similarly, the carrying value of the notes payable of variable interest entities approximates its fair value due to the associated effective interest rate of the debt instrument.

The following table details the fair value measurements within the fair value hierarchy of the Company's financial instruments (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | ***June 30, 2025*** | ***June 30, 2025*** |  |
|  | ***Total*** | ***Level 1*** | ***Level 2*** | ***Level 3*** |
| Assets: |  |  |  |  |
| Cash Equivalents |  |  |  |  |
| Mutual funds | $629 | $629 | $— | $— |
| Money market funds | 115 | 115 |  |  |
| &nbsp;&nbsp;&nbsp; Trading debt securities | 874 |  |  | 874 |
| Total assets | $1618 | $744 | $— | $874 |
| Liabilities: |  |  |  |  |
| Current portion of royalties payable due to related parties | $497 | $— | $— | $497 |
| Royalties payable due to related parties | $11546 | $— | $— | $11546 |
| Total liabilities | $12043 | $— | $— | $12043 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | ***December 31, 2024*** | ***December 31, 2024*** |  |
|  | ***Total*** | ***Level 1*** | ***Level 2*** | ***Level 3*** |
| Assets: |  |  |  |  |
| Cash Equivalents |  |  |  |  |
| Mutual funds | $2803 | $2803 | $— | $— |
| Money market funds | 12 | 12 |  |  |
| Total assets | $2815 | $2815 | $— | $— |
| Liabilities: |  |  |  |  |
| Current portion of royalties payable due to related parties | $145 | $— | $— | $145 |
| Royalties payable due to related parties | $9068 | $— | $— | $9068 |
| Total liabilities | $9213 | $— | $— | $9213 |

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The fair value measurement of royalties payable due to related parties includes significant unobservable inputs that are *not* supported by any market data. Royalties payable due to related parties equals the present value of estimated future royalty payments. The Company applies an internally developed, revenue adjusted discount rate ("RADR") to discount back the forecasted royalty payments. The RADR is based on the Company's weighted average cost of capital ("WACC") adjusted for the product revenue's risk profile. The risk-free rate used to determine the cost of equity for the RADR is adjusted to be commensurate with the term of the royalty agreements. Furthermore, the Beta and Risk Premium used to determine the cost of equity are also adjusted to reflect the product revenue's volatility. All other inputs for the RADR and the Company's WACC are the same.

The fair value of trading debt securities includes assumptions that are both significant and unobservable. The fair value of the trading debt securities is determined using a probability weighted expected return model ("PWER model") that values the trading debt securities based on the discounted cash flows of *two* potential settlement outcomes: (i) the trading debt securities will be converted into and settled in shares of common stock of QHSLab, Inc. and (ii) the trading debt securities' principal and accrued interest will be paid. Aside from the probability of the *two* potential settlement outcomes, the fair value measurement incorporates several significant unobservable inputs, including the recovery rate, simulated conversion price, credit-risk adjusted discount rate, expected equity volatility, and expected term.

The following tables summarize the significant unobservable inputs used in the fair value measurement of Level *3* instruments:

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| | | | |
|:---|:---|:---|:---|
| ***June 30, 2025*** | ***June 30, 2025*** | ***June 30, 2025*** | ***June 30, 2025*** |
| **Instrument** | ***Valuation Technique*** | ***Unobservable Input*** | ***Input Range*** |
| Royalties payable due to related parties | *Discounted future cash flows* | *Revenue adjusted discount rate* | 20.5% |
| Trading debt securities | *Probability weighted expected return* | *Recovery rate* | 60.0% |
|  |  | *Simulated conversion price* | $0.67 |
|  |  | *Credit risk-adjusted discount rate* | 13.7% |
|  |  | *Expected equity volatility* | 91.8% |
|  |  | *Probability of conversion* | 29.3% |
|  |  | *Probability of payment* | 70.7% |
|  |  | *Expected term for conversion (years)* | 1.6 |
|  |  | *Expected term for payment (years)* | 5.0 |

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| | | | |
|:---|:---|:---|:---|
| ***December 31, 2024*** | ***December 31, 2024*** | ***December 31, 2024*** | ***December 31, 2024*** |
| **Instrument** | ***Valuation Technique*** | ***Unobservable Input*** | ***Input Range*** |
| Royalties payable due to related parties | *Discounted future cash flows* | *Revenue adjusted discount rate* | 22.5% |

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The table below summarizes the change in fair value of royalties payable due to related parties and trading debt securities for the *three* and *six* months ended *June 30, 2025* (in thousands):

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| | | |
|:---|:---|:---|
|  | ***Fair Value Measurements Using Significant Unobservable Inputs (Level 3)*** | ***Fair Value Measurements Using Significant Unobservable Inputs (Level 3)*** |
|  | ***Royalties Payable due to Related Parties*** | ***Trading Debt Securities*** |
| Balance at January 1, 2025 | $9213 | $— |
| Change in fair value | 1163 |  |
| Balance at March 31, 2025 | 10376 |  |
| Purchased |  | 864 |
| Change in fair value | 1667 | 10 |
| Balance at June 30, 2025 | $12043 | $874 |

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The table below summarizes the change in fair value of royalties payable due to related parties and trading debt securities for the *three* and *six* months ended *June 30, 2024* (in thousands):

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| | | |
|:---|:---|:---|
|  | ***Fair Value Measurements Using Significant Unobservable Inputs (Level 3)*** | ***Fair Value Measurements Using Significant Unobservable Inputs (Level 3)*** |
|  | ***Royalties Payable due to Related Parties*** | ***Trading Debt Securities*** |
| Balance at January 1, 2024 | $6974 | $— |
| Change in fair value | 86 |  |
| Balance at March 31, 2024 | 7060 |  |
| Change in fair value | 1504 |  |
| Balance at June 30, 2024 | $8564 | $— |

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Increases or decreases in the fair value of royalties payable due to related parties or trading debt securities can result from updates to assumptions. Judgment is used in determining these assumptions as of the initial valuation date and at each subsequent reporting period. Changes or updates to assumptions could have a material impact on the reported fair value, the change in fair value, and the results of operations in any given period.

***Accounts Receivable and Allowances for Credit Losses***

Accounts receivable consists of trade receivables recorded at invoiced amounts. Accounts receivable is presented net of any discounts and allowance for credit losses, is unsecured and does *not* bear interest. Accounts receivable is evaluated for collectability based on historical credit loss experience, adjusted for asset-specific risk characteristics, current economic conditions, and reasonable forecasts, including the probability of future collection and estimated loss rates based on aging schedules. Accounts receivable is assessed for collectability based on three portfolio segments: Hospitals - United States, Hospitals - Europe, and Distributors. The determination of portfolio segments is based on the customers' industry and geographical location.

Changes in the estimated collectability of accounts receivable are recorded in the condensed consolidated statements of operations in the period in which the estimate is revised. Accounts receivable are written off as uncollectible after all means of collection are exhausted. Any subsequent recoveries are credited to the allowance for credit losses. As of *June 30, 2025* and *December 31, 2024*, the allowance for credit losses related to accounts receivable was immaterial.

***Inventories***

Inventories are stated at the lower of cost (determined by the *first*-in, *first*-out method) or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. The Company reduces the carrying value of inventories for those items that are potentially in excess, obsolete or slow-moving based on changes in customer demand, technological developments or other economic factors.

***Property and Equipment***

Property and equipment are recorded at cost, less accumulated depreciation. Property and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

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| | |
|:---|:---|
| Machinery and equipment | *2 - 5 years* |
| Computer hardware and software | *1 - 5 years* |
| LockeT animation video | 3 years |
| VIVO DEMO/Clinical Systems | *1-5 years* |

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The Company periodically reviews the residual values and estimated useful lives of each class of its property and equipment for ongoing reasonableness, considering the long-term views of their intended use and the level of planned improvements to maintain and enhance those assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from their respective account balances, and any resulting gain or loss is recognized in the Company's condensed consolidated statements of operations. The cost of repairs and maintenance is expensed as incurred, whereas significant renewals and betterments are capitalized.

***Impairment of Long-lived Assets***

In accordance with ASC Topic *360, Impairment and Disposals of Long-lived Assets*, the Company periodically reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that such assets might be impaired and the carrying value of the long-lived assets *may not* be recoverable. If events or changes in circumstances indicate that the carrying amount of an asset *may not* be recoverable and the expected undiscounted future cash flows attributable to the asset are less than the carrying amount of the asset, an impairment loss equal to the excess of the assets carrying value over its fair value is recorded in the Company's condensed consolidated statements of operations at that date. The Company has analyzed a variety of factors impacting its business to determine if a circumstance could trigger an impairment loss, and, at this time and based on the information presently known, does *not* believe it is more likely than not that an impairment loss has been incurred.

***Royalties Payable Due to Related Parties***

The Company is obligated to pay royalties related to the sales of LockeT and AMIGO System under various royalty agreements executed by Old Catheter. The Company recognizes a liability for royalty fees incurred and payable based on actual sales of products under current portion of royalties payable due to related parties in the condensed consolidated balance sheets. The Company recognizes a liability for future, estimated royalty payments at fair value under royalties payable due to related parties in the condensed consolidated balance sheets. The royalties payable due to related parties is remeasured at each reporting period. Changes in fair value of royalties payable due to related parties are recorded on the condensed consolidated statements of operations in the period in which they occur. See Note *8,* Royalties Payable for additional information.

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***Asset acquisitions and In-process Research and Development***

The Company accounts for acquisitions of assets or a group of assets that do *not* meet the definition of a business as asset acquisitions based on the cost to acquire the asset or group of assets, which includes certain transaction costs. In an asset acquisition, the cost to acquire is allocated to the identifiable assets acquired and liabilities assumed based on their relative fair values as of the acquisition date. *No* goodwill is recorded in an asset acquisition.

Assets that are acquired in an asset acquisition for use in research and development activities that have an alternative future use are capitalized as in-process research and development ("IPR&D") in the condensed consolidated balance sheets. Acquired IPR&D that has *no* alternative future use as of the acquisition date is recognized as research and development expense in the condensed consolidated statements of operations as of the acquisition date.

Contingent consideration in asset acquisitions that is *not* accounted for as a derivative is measured and recognized when payment becomes probable and reasonably estimable. Subsequent changes in the accrued amount of contingent consideration are measured and recognized at the end of each reporting period and upon settlement as an adjustment to the cost basis of the acquired asset or group of assets, or, if related to IPR&D with *no* alternative future use, recognized as expense. Contingent consideration that is in the form of a sales or usage-based royalty payment is recognized as an expense as incurred.

***Debt Securities***

Debt securities consist of the QHSLab Notes, which were received as partial consideration for the PIPE Units and Series B Convertible Preferred Stock issued by the Company under the *May 2025* PIPE Financing (see Note *11,* Equity Offerings for further details). One QHSLab Note was originally issued on *August 10, 2021* with a principal amount of $806 thousand, a maturity date of *August 10, 2022,* an interest rate of 5% per annum (*"2021* Note"), a default interest rate of 18%, and a conversion rate of *20* cents per share of common stock of QHSLab, Inc. ("QHSLab"). The *second* QHSLab Note was originally issued on *July 19, 2022* with a principal amount of *$440,000,* a maturity date of *July 19, 2023,* interest rate of *5%* per annum (*"2022* Note"), a default interest rate of 18%, and conversion rate of 20 cents per share of common stock of QHSLab. Both QHSLab Notes were in default at the date of transfer.

Under ASC Topic *320, Investments: Debt Securities,* debt securities are classified into *one* of *three* categories upon acquisition: held-to-maturity, available-for-sale or trading. Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity. Debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading. All other debt securities are classified as available-for-sale. As the Company acquired the QHSLab Notes with the intent of selling them, the QHSLab Notes are classified as trading debt securities.

Trading debt securities are initially and subsequently measured at fair value in the condensed consolidated balance sheets, with unrealized holding gains and losses included in change in fair value of trading debt securities in the condensed consolidated statements of operations. The QHSLab Notes were valued at $864 thousand at the close of the *May 2025* PIPE Financing. The Company recorded unrealized gains of $10 thousand for the QHSLab Notes for the *three* and *six* months ended *June 30, 2025,* such that the QHSLab Notes were valued at $874 thousand as of *June 30, 2025.* The QHSLab Notes had an outstanding balance of $1,702 thousand, $1,449 thousand in principal and $253 thousand in accrued interest as of *June 30, 2025.* The QHSLab Notes continue to be in default, such that there can be *no* assurance that they will be paid in full or at all.

***Variable Interest Entity***

A variable interest entity ("VIE") is a legal entity that does *not* have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity's operations through voting rights or do *not* substantively participate in the gains or losses of the entity. The primary beneficiary has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE.

The Company evaluates its ownership, contractual relationships and other interests in entities to determine the nature and extent of the interests, whether such interests are variable interests and whether the entities are VIEs in accordance with ASC Topic *810, Consolidation* ("ASC *810"*). These evaluations can be complex and judgmental, involving the use of estimates and assumptions based on available information among other factors. Based on these evaluations, if the Company determines it is the primary beneficiary of a VIE, the Company consolidates the accounts of that VIE. The equity owned by other stockholders is presented, as applicable, as non-controlling interests in the accompanying condensed consolidated balance sheets, statements of operations, and statements of stockholders' equity.

If a reconsideration event occurs under ASC *810,* the Company performs an assessment to determine whether the entity continues to be a VIE, whether the Company still contains a variable interest in the VIE, and whether the Company continues to be or has become the primary beneficiary of the VIE.

*Cardionomix*

Cardionomix is a legal entity that was solely created to hold the assets of and to clinically develop and commercialize the CPNS System. The Company holds 82% of the voting, common stock, while the Company's Chief Executive Officer and his affiliates hold 12%, and other *third* parties hold the remaining 6%. The Company determined that its controlling equity interest represents a variable interest in Cardionomix, which meets the definition of a VIE as it does *not* have sufficient equity at risk to finance its activities without additional subordinated financial support. Furthermore, the Company has determined that it is the primary beneficiary of the VIE as it has the power to direct the activities that most significantly impact the VIE's economic performance through its controlling equity interest. The Company therefore consolidates the results of operations, assets, and liabilities of Cardionomix. As of *June 30, 2025,* Cardionomix only had a $1.3 million note payable that was issued in connection with the asset acquisition. This note payable is presented under notes payable of variable interest entities in the condensed consolidated balance sheets. Cardionomix does *not* hold any other material assets or liabilities. Creditors of Cardionomix have *no* recourse to the Company's general credit and their claims are limited solely to the assets of Cardionomix.

The Company provided financial support to Cardionomix, including the payment of direct transactions totaling $0.3 million in connection with the asset acquisition. Unless Cardionomix can obtain its own financing, the Company expects to continue to provide financial support to Cardionomix as it begins to clinically develop and seek commercialization of the CPNS System. Until commercialization for the CPNS System is achieved, the Company expects to incur additional losses related to Cardionomix.

The minority equity interest holders are presented as non-controlling interests in the accompanying condensed consolidated balance sheets, statements of operations, and statements of stockholders' equity.

*KardioNav*

KardioNav is a legal entity that was solely created to hold the assets of and to clinically develop and commercialize certain intellectual property related to new cardiac technology. The Company holds 57% of the voting common stock, while the Company's Chief Executive Officer and his affiliates hold 10%, and other *third* parties hold the remaining 33%. The Company determined that its controlling equity interest represents a variable interest in KardioNav, which meets the definition of a VIE as it does *not* have sufficient equity at risk to finance its activities without additional subordinated financial support. Furthermore, the Company has determined that it is the primary beneficiary of the VIE as it has the power to direct the activities that most significantly impact the VIE's economic performance through its controlling equity interest. The Company consolidates the results of operations, assets, and liabilities of KardioNav, noting that KardioNav's net assets are limited to the intellectual property assigned by the Company and Chelak. The Company assigned certain intellectual property related to the VIVO System to KardioNav, which was accounted for as a common control transaction under ASC *810* and carried at the Company's carrying value at inception. Furthermore, the fair value of the intellectual property assigned by Chelak to KardioNav was deemed to be de minimis as the intellectual property solely consists of patents and related know-how at the conceptual stage. Therefore, the Company recognized *no* gain or loss upon initial consolidation. Although KardioNav has *no* material assets or liabilities, creditors of KardioNav have *no* recourse to the Company's general credit and their claims are limited solely to the assets of KardioNav. Unless KardioNav obtains its own financing, the Company expects to continue to provide financial support to KardioNav as it advances research and development of its electrophysiology mapping technologies.

The minority equity interest holders are presented as non-controlling interests in the accompanying condensed consolidated balance sheets, statements of operations, and statements of stockholders' deficit.

***Distinguishing Liabilities from Equity***

The Company evaluates equity or liability classification for freestanding financial instruments, including convertible preferred stock, warrants, and options, pursuant to the guidance under ASC Topic *480, Distinguishing Liabilities from Equity* ("ASC *480"*). The Company classifies as liabilities all freestanding financial instruments that are (i) mandatorily redeemable, (ii) represent an obligation to repurchase the Company's equity shares by transferring assets, or (iii) represent an unconditional obligation (or conditional obligation if the financial instrument is *not* an outstanding share) to issue a variable number of shares predominantly based on a fixed monetary amount, variations in something other than the fair value of the Company's equity shares, or variations inversely related to changes in fair value of the Company's equity shares.

If a freestanding financial instrument does *not* represent an outstanding equity share and does *not* meet liability classification under ASC *480,* the Company then assesses whether the freestanding financial instrument is indexed to its own stock and meets equity classification pursuant to ASC *815*-*40, Derivatives and Hedging* ("ASC *815"*). The Company further assesses whether the freestanding financial instruments should be classified as temporary equity. Freestanding financial instruments that are redeemable for cash or other assets at a fixed or determinable date, at the option of the holder, or upon the occurrence of an event are classified in temporary equity in accordance with ASC *480.* Otherwise, the freestanding financial instruments are classified in permanent equity.

See Note *11,* Equity Offerings and Note *12,* Preferred Stock for additional information on the freestanding financial instruments assessed under ASC *480* and ASC *815*-*40* for equity or liability classification.

***Revenue Recognition***

In accordance with ASC Topic *606, Revenue from Contracts with Customers* ("ASC *606"*), the Company accounts for contracts with customers when there is a legally enforceable contract, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. Revenue is measured as the amount of consideration expected to be received in exchange for transferring promised goods or services. The amount of consideration to be received and revenue recognized *may* vary due to discounts. A performance obligation is a promise in a contract to transfer a distinct good or service. If there are multiple performance obligations in the customer contract, the Company allocates the transaction price in the contract to each performance obligation based on the relative standalone selling price. The Company does *not* adjust revenue for the effects of a significant financing component for contracts if the period between the transfer of control and corresponding payment is expected to be *one* year or less. Revenue is recognized when performance obligations in the customer contract are satisfied. This generally occurs when the customer obtains control of a promised good at a point in time or when a customer receives a promised service over time.

Pursuant to ASC *606,* the Company applies the following *five* steps to each customer contract:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *13*

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Step *1:* Identify the contract with the customer

Step *2:* Identify the performance obligations in the contract

Step *3:* Determine the transaction price

Step *4:* Allocate the transaction price to the performance obligations in the contract

Step *5:* Recognize revenue when the Company satisfies a performance obligation

*VIVO System*

The VIVO System offers *3D* cardiac mapping to help localize the sites of origin of idiopathic ventricular arrhythmias in patients with structurally normal hearts prior to electrophysiology studies. Customers are provided with VIVO Positioning Patch Sets, which are custom patches, that are used in conjunction with the VIVO System. The VIVO Positioning Patch Sets are integral to the functionality of the VIVO System. The VIVO System, including the VIVO Positioning Patch Sets, represents the Company's primary performance obligation. The Company recognizes revenue when physical possession and control of the VIVO System is transferred to the customer upon delivery. The Company also offers customers software upgrades for the VIVO System, which *may* be purchased and paid in advance at contract inception. Software upgrades represent stand-ready services, whereby the Company promises to provide software upgrades to the customer when and as upgrades are available. Software upgrade services *may* be offered for initial contract terms of *one* to multiple years. Customers have the option to renew software upgrades services at the end of each term. The software upgrade services represent the Company's *second* performance obligation, which is recognized evenly over time over the contract term.

The Company invoices the customer for the VIVO System and related software upgrades after physical possession and control of the VIVO System has been transferred to the customer. Subsequent renewals for software upgrades are invoiced at inception of the renewed term. The timing of payment for the corresponding invoices depends on the credit terms identified in each customer contract. There were no software upgrade services revenues during the *six* months ended *June 30, 2025* and *2024*.

*LockeT*

LockeT was launched by the Company in *February 2023* and is a suture retention device indicated for wound healing by distributing suture tension over a larger area in the patient in conjunction with a figure of *eight* suture closure. LockeT is intended to temporarily secure sutures and aid clinicians in locating and removing sutures efficiently. The LockeT device represents a performance obligation in the customer contract. The Company recognizes revenue when it transfers control of the LockeT device to the customer, which happens when the Company delivers the product to the customer.

The Company has elected as a practical expedient to expense as incurred any costs incurred to obtain a contract as the related amortization period would be *one* year or less.

***Disaggregation of Revenue***

The following table summarizes disaggregated product sales by geographic area (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***For the Three Months Ended June 30,*** | ***For the Three Months Ended June 30,*** | ***For the Six Months Ended June 30,*** | ***For the Six Months Ended June 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Product sales |  |  |  |  |
| US | $173 | $60 | $308 | $67 |
| Europe | 39 | 33 | 47 | 108 |
| Total product sales | $212 | $93 | $355 | $175 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *14*

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***Shipping and Handling Costs***

Shipping and handling costs charged to customers are included in net product sales, while all other shipping and handling costs are included in selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations.

***Advertising and Marketing***

Advertising costs are expensed as incurred and included in selling, general and administrative expenses in the unaudited condensed consolidated statements of operations. Advertising costs were $50 thousand and $133 thousand during the *three* and *six* months ended *June 30, 2025*, respectively, and $48 thousand and $96 thousand during the *three* and *six* months ended *June 30, 2024*, respectively.

***Patents***

The Company expenses patent costs, including related legal costs, as incurred and records such costs as selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations.

***Research and Development***

Major components of research and development costs include consulting, research grants, supplies and clinical trial expenses. Research and development expenses are charged to operations in the period incurred.

***Stock-based Compensation***

The Company recognizes stock-based compensation expense associated with stock options, restricted stock awards ("RSAs") and restricted stock units ("RSUs") issued to employees, members of the Company's board of directors and consultants in accordance with ASC Topic *718, Compensation* – *Stock Compensation* ("ASC *718"*). The Company evaluates whether stock-based awards should be classified and accounted for as liability or equity awards on the date of grant. Furthermore, the Company measures all stock-based awards granted based on their fair value on the date of grant. Stock options are measured at fair value using the Black-Scholes option pricing valuation model (the "Black-Scholes model"), which incorporates various assumptions, including expected term, volatility and risk-free interest rate. The expected term of the options is the estimated period of time until exercise and was determined using the SEC's safe harbor rules, using an average of vesting and contractual terms, as we did *not* have sufficient historical experience of similar awards. Expected stock price volatility is based on historical volatilities of certain "guideline" companies, as the Company does *not* have sufficient historical stock price data. The risk-free interest rate is based on the implied yield available on U.S. Treasury *zero*-coupon issues with an equivalent term. Stock-based compensation expense for all stock-based awards is recognized over the requisite service period, which is generally the vesting period of the respective stock award. Stock-based compensation expense for stock-based awards with a performance condition is recognized when the achievement of such performance condition is determined to be probable. If the outcome of such performance condition is *not* probable or is *not* met, *no* stock-based compensation expense is recognized, and any previously recognized compensation expense is reversed. Forfeitures are recognized as a reduction of stock-based compensation expense as they occur.

***Income Taxes***

The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Any resulting net deferred tax assets are evaluated for recoverability and, accordingly, a valuation allowance is provided when it is more likely than *not* that all or some portion of the deferred tax asset will *not* be realized.

The Company accounts for uncertainty in income taxes using a *two*-step approach to recognizing and measuring uncertain tax positions. The *first* step is to evaluate the tax position for recognition by determining whether it is more likely than *not* that the position will be sustained on an audit, including resolution of related appeals or litigation processes, if any. The *second* step is to measure the tax benefit as the largest amount that is more than *50%* likely of being realized upon ultimate settlement. An uncertain tax position is considered effectively settled on completion of an examination by a taxing authority if certain other conditions are satisfied. Should the Company incur interest and penalties relating to tax uncertainties, such amounts would be classified as a component of interest expense and other expense, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *15*

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***Basic and Diluted Net Loss Per Share***

Earnings per share attributable to Catheter Precision, Inc. common stockholders is calculated using the *two*-class method, which is an earnings allocation formula that determines earnings per share for the holders of the Company's common shares and participating securities. The Company's Series A Convertible Preferred Stock, of which no shares were outstanding as of *June 30, 2025*, Series *X* Convertible Preferred Stock, Series B Convertible Preferred Stock, and outstanding warrants are participating securities as they contain participating rights in distributions made to common stockholders. Since the participating securities do *not* include a contractual obligation to share in the losses of the Company, they are *not* included in the calculation of net loss per share in the periods that have a net loss. In addition, common stock equivalent shares (whether or *not* participating) are excluded from the computation of diluted loss per share in periods in which they have an anti-dilutive effect on net loss per common share.

Diluted net loss per share is computed using the more dilutive of (a) the *two*-class method or (b) the if-converted method and treasury stock method, as applicable. In periods in which the Company reports a net loss attributable to Catheter Precision, Inc. common stockholders, diluted net loss per share attributable to Catheter Precision, Inc. common stockholders is the same as basic net loss per share attributable to Catheter Precision, Inc. common stockholders since dilutive common shares are *not* assumed to have been issued if their effect is anti-dilutive. Diluted net loss per share is equivalent to basic net loss per share for the periods presented herein because common stock equivalent shares from warrants, stock options, non-vested restricted stock awards, restricted stock units, Series A Convertible Preferred Stock, Series *X* Convertible Preferred Stock and Series B Convertible Preferred Stock were anti-dilutive (see Note *10,* Net Loss per Share).

Net loss attributable to Catheter Precision, Inc. common stockholders consists of net income or loss attributable to Catheter Precision, Inc., as adjusted for actual and deemed dividends declared, if applicable.

***Recently Announced Accounting Pronouncements***

In *December 2023,* the FASB issued ASU *2023*-*09, Income Taxes (Topic *740*): Improvements to Income Tax Disclosures*, which requires public entities to disclose consistent categories and greater disaggregation of information in the rate reconciliation and for income taxes paid. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The guidance is effective for financial statements issued for annual periods beginning after *December 15, 2024,* with early adoption permitted. The Company is required to adopt this standard prospectively in fiscal year *2025* for the annual reporting period ending *December 31, 2025.* The Company does *not* believe the impact of the new guidance and related codification improvements will have a material impact on its financial position, results of operations and cash flows.

In *November 2024,* the FASB issued ASU *2024*-*03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic *220*-*40*): Disaggregation of Income Statement Expenses* ("ASU *2024*-*03"*). In *January 2025,* the FASB issued ASU *2025*-*01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic *220*-*40*), Clarifying the Effective Date* ("ASU *2025*-*01"*). ASU *2024*-*03* requires the disaggregation of certain costs and expenses in the notes to the financial statements to provide enhanced transparency into the expense captions presented on the face of the income statement. ASU *2024*-*03,* as clarified by ASU *2025*-*01,* is effective for the Company's Annual Report on Form *10*-K for the fiscal year ending *December 31, 2027* and for interim periods beginning in *2028.* The guidance *may* be applied on a prospective or retrospective basis and early adoption is permitted. The Company is currently evaluating the impact of adopting ASU *2024*-*03* on its condensed consolidated financial statements.

**Note *3.* Inventories**

Inventories consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Raw materials | $24 | $18 |
| Finished goods | 24 | 15 |
| **Inventories** | $48 | $33 |

---

There were no charges for inventory obsolescence or allowance recorded for the *three* and *six* months ended *June 30, 2025* and *2024*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *16*

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**Note *4.* Property and Equipment**

Property and equipment, net consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Machinery and equipment | $36 | $29 |
| Computer hardware and software | 38 | 29 |
| LockeT animation video | 29 | 29 |
| VIVO DEMO/Clinical Systems | 111 | 101 |
| Property and equipment, gross | 214 | 188 |
| Accumulated depreciation | (135) | (97) |
| **Property and equipment, net** | $79 | $91 |

---

Depreciation expense was $18 thousand and $38 thousand for the *three* and *six* months ended *June 30, 2025*, respectively, and $15 thousand and $26 thousand for the *three* and *six* months ended *June 30, 2024*, respectively.

**Note *5.* Intangible Assets** 

The following table summarizes the Company's intangible assets as of *June 30, 2025* (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Estimated*** |  |  |  |
|  | ***Useful Life*** | ***Gross Carrying*** | ***Accumulated*** | ***Net Carrying*** |
|  | ***(Years)*** | ***Amount*** | ***Amortization*** | ***Value*** |
| Developed technology - VIVO | 15 | $8244 | $(1374) | $6870 |
| Developed technology - LockeT | 14 | 18770 | (3352) | 15418 |
| Customer relationships | 6 | 62 | (26) | 36 |
| Trademarks/trade names - VIVO | 9 | 876 | (243) | 633 |
| Trademarks/trade names - LockeT | 9 | 409 | (114) | 295 |
|  |  | $28361 | $(5109) | $23252 |

---

The following table summarizes the Company's intangible assets as of *December 31, 2024* (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Estimated*** |  |  |  |
|  | ***Useful Life*** | ***Gross Carrying*** | ***Accumulated*** | ***Net Carrying*** |
|  | ***(Years)*** | ***Amount*** | ***Amortization*** | ***Value*** |
| Developed technology - VIVO | 15 | $8244 | $(1099) | $7145 |
| Developed technology - LockeT | 14 | 18770 | (2681) | 16089 |
| Customer relationships | 6 | 62 | (21) | 41 |
| Trademarks/trade names - VIVO | 9 | 876 | (195) | 681 |
| Trademarks/trade names - LockeT | 9 | 409 | (91) | 318 |
|  |  | $28361 | $(4087) | $24274 |

---

The estimated future amortization expense for the next *five* years and thereafter is as follows (in thousands):

---

| | |
|:---|:---|
|  | ***Future*** |
|  | ***Amortization*** |
| **Years ending December 31,** | ***Expense*** |
| Remainder of 2025 | $1021 |
| 2026 | 2043 |
| 2027 | 2043 |
| 2028 | 2043 |
| 2029 | 2033 |
| Thereafter | 14069 |
| Total | $23252 |

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The Company uses the straight-line method to determine amortization expense for its definite lived intangible assets. Amortization expense, included within selling, general and administrative expenses in the condensed consolidated statements of operations, for the Company's intangible assets was $0.5 million for the *three* months ended *June 30, 2025* and *2024* and $1 million for the *six* months ended *June 30, 2025* and *2024*.

**Note *6.* Accrued Expenses**

Accrued expenses consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Legal expenses | $78 | $81 |
| Offering costs | 1356 | 1356 |
| Compensation and related benefits | 72 | 35 |
| Other accrued expenses | 27 | 76 |
| **Accrued expenses** | $1533 | $1548 |

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**Note *7.* Notes Payable**

***Note Payable - Director & Officer Liability Insurance***

The Company purchased director and officer liability insurance coverage on *October 16, 2023* for $447 thousand. A down payment of $157 thousand was made and the remaining balance of $290 thousand was financed over 8 months through a short-term financing arrangement with its insurance carrier. The interest rate on the loan was 8.99%. Interest expense on this loan was $1 thousand and $4 thousand for the *three* and *six* months ended *June 30, 2024*, respectively. The loan balance was paid off in *May 2024,* such that there is no remaining balance as of *June 30, 2025*, and *December 31, 2024*.

The Company purchased director and officer liability insurance coverage on *September 26, 2024* for $293 thousand. A down payment of $44 thousand was made and the remaining balance of $249 thousand was financed over 10 months through a short-term financing arrangement with its insurance carrier. The interest rate on the loan is 9.99%. Interest expense on this loan was $2 and $6 thousand for the *three* and *six* months ended *June 30, 2025*, respectively. The loan balance was $26 thousand as of *June 30, 2025* and $177 thousand as of *December 31, 2024* and is recorded under short-term notes payable in the condensed consolidated balance sheets.

***Note Payable issued for the Cardionomic Asset Acquisition***

In connection with the asset acquisition of the CPNS System previously held by Cardionomic, on *May 5, 2025,* Cardionomix issued a promissory note with a face amount of $1.5 million and stated interest rate of 4% per annum (the "Note Payable"). *No* interest or principal is payable until the maturity date of the Note Payable, which is *three* years following the date of issuance. All outstanding principal plus accrued but unpaid interest becomes immediately due and payable upon voluntary or involuntary bankruptcy filings. The Note Payable *may* be prepaid by Cardionomix at any time at its own discretion.

The Note Payable was initially measured at its present value of $1.3 million net of a discount of $254 thousand based on an effective interest rate of 10% per annum. The discount is amortized under the effective interest method over the term of the Note Payable.

Interest expense on this note was $19 thousand for the *three* and *six* months ended *June 30, 2025*. The Note Payable and related accrued interest totaled $1.3 million as of *June 30, 2025*, which included a principal balance of $1.5 million and accrued interest expense of $9 thousand net of unamortized discounts of $245 thousand. The Note Payable and related accrued interest was recorded under notes payable of variable interest entities on the condensed consolidated balance sheets.

Future maturities for long-term debt as of *June 30, 2025* were as follows (in thousands):

---

| | |
|:---|:---|
|  | ***June 30,*** |
|  | ***2025*** |
| 2025 | $— |
| 2026 |  |
| 2027 |  |
| 2028 | 1500 |
| **Total** | $1500 |

---

***Promissory Notes (Collectively, the "Related Party Notes")***

On *May 30, 2024,* David A. Jenkins loaned $500,000 to the Company in exchange for a short-term promissory note.

On *June 25, 2024,* an entity controlled by Mr. Jenkins loaned $150,000 to the Company in exchange for a short-term promissory note.

On *July 1, 2024* and *July 18, 2024,* the Company entered into *two* short-term promissory notes with an affiliate of Mr. Jenkins, wherein the affiliate loaned $250,000 and $100,000, respectively, to the Company in exchange for the short-term promissory notes.

On *July 25, 2024,* the Company entered into a short-term promissory note with a Trust, of which Mr. Jenkins' adult daughter is the trustee, wherein the Trust loaned $500,000 to the Company in exchange for the short-term promissory note.

All of these short-term promissory notes (the "Related Party Notes") had a maturity date of *August 30, 2024* and interest of 8% per annum.

On *August 23, 2024,* the Company entered into the *first* amendment of the Related Party Notes, which extended the maturity date to *January 31, 2026* and increased the interest rate to 12% per annum after *August 31, 2024.* All other terms and conditions remained substantially unchanged. As part of the amendment, the Company paid down all accrued interest to date of $21 thousand. The amendment was accounted for as a debt modification in accordance with ASC *470*-*50, Debt Modifications and Extinguishment* ("ASC *470*-*50"*). Since the modified terms and conditions were *not* substantially different from the prior terms and conditions, the Company accounted for the debt modification as a continuation of the original debt instrument. The Company further concluded that the debt modification did *not* result in any adjustments to the carrying value of the Related Party Notes.

The Related Party Notes, including all principal and interest, accelerate and become immediately due and payable upon the occurrence of certain customary events of default, including failure to pay amounts owed when due, material breach of the Company's representations or warranties (unless waived by the holders of the Related Party Notes or cured within *10* days following notice), certain events involving the discontinuation of the Company's business and/or certain types of proceedings involving insolvency, bankruptcy, receivership and the like.

Interest expense on the Related Party Notes was $45 thousand and $90 thousand for the *three* and *six* months ended *June 30, 2025*, respectively, and $4 thousand for the *three* and *six* months ended *June 30, 2024*, respectively.

The Related Party Notes and related accrued interest totaled $1.7 million as of *June 30, 2025*, of which $151 thousand related to accrued interest. The Related Party Notes and related accrued interest totaled $1.6 million as of *December 31, 2024*, of which $61 thousand related to accrued interest. The Related Party Notes are recorded under the current portion of notes payable due to related parties on the condensed consolidated balance sheets, while accrued interest is recorded under current portion of interest payable due to related parties on the condensed consolidated balance sheets.

See Note *17,* Related Parties for additional details.

**Note *8.* Royalties Payable**

***LockeT Royalty***

On *January 9, 2023,* prior to the consummation of the Merger, Old Catheter entered in an agreement with its Convertible Promissory Noteholders ("Noteholders"), which substantially consisted of amounts due to David A. Jenkins, previously Old Catheter's Chairman of the Board of Directors prior to the Merger, and, currently, the Company's Executive Chairman of the Board of Directors and Chief Executive Officer, to forgive all accrued interest and future interest expense in exchange for a future royalty right. Under these agreements, the Company is obligated to pay the Noteholders a total royalty equal to 11.82% of net sales of its LockeT device on a quarterly basis, commencing upon the *first* commercial sale, which occurred in *April 2024,* through *December 31, 2035.* As of *June 30, 2025* and *December 31, 2024*, the fair value of the royalty payable related to the agreement with the Noteholders was $12.0 million and $9.2 million, respectively.

An additional royalty will be paid to the inventor of the LockeT device as detailed in the Royalty Agreement. In exchange for the assignment and all rights to LockeT and starting with the year ending *December 31, 2022,* the Company will initially pay a 5% royalty on net sales up to $1.0 million in royalties, payable annually in arrears. After $1.0 million has been paid, due to the issuance of the patent described below, the Company must pay an additional royalty at a rate of 2% of net sales, until total cumulative royalties of $10.0 million have been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In *April 2025,* a US patent was granted by the United States Patent and Trademark Office, after which the Company is obligated to pay an additional royalty of 2% of net sales only after the initial $1.0 million of 5% royalties has been paid, up to a maximum of *$10.0* million in additional royalties. These royalty payments apply to revenues through *December 31, 2033* and will terminate at that date regardless of whether the full *$10.0* million has been paid. This led to a *$0.9* million increase in the royalty payable due to related parties as of *June 30, 2025* as compared to *December 31, 2024.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company recorded losses for the change in the fair value of the royalty payable of $1.7 million and $2.8 million for the *three* and *six* months ended *June 30, 2025*, respectively, and $1.5 million and $1.6 million for the *three* and *six* months ended *June 30, 2024*, respectively. The Company accrued $542 thousand and $177 thousand under current portion of royalties payable due to related parties as of *June 30, 2025*, and *December 31, 2024*, respectively. These amounts represent actual royalty liabilities incurred and accrued by the Company as well as estimated future royalty payments payable within the next *12* months.

 ***AMIGO System Royalty***

During *2006* and *2007,* Old Catheter entered into two investment grant agreements with a non-profit foundation for the purpose of funding the initial development of Old Catheter's AMIGO System, receiving a total of $1.6 million from the foundation. The agreement calls for the payment of the following sales-based royalties by Old Catheter to the foundation upon successful commercialization of the AMIGO System (in thousands, except for percentages):

---

| | |
|:---|:---|
|  | **Until Royalty Payment** |
| **Royalty Percentage** | **Reaches a Total of** |
| 4% | $1589 |
| 2% | $3179 |
| 1% | *In perpetuity* |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *19*

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The Company is *not* actively marketing and selling the AMIGO System, such that there was no royalty expense recorded for the *three* and *six* months ended *June 30, 2025* and *2024* in relation to the AMIGO System.

**Note *9.* Leases**

The Company determines if an arrangement contains a lease at contract inception based on its ability to control a physically distinct asset in exchange for consideration. If the arrangement contains a lease, the Company then determines the classification of the lease as either operating or finance. For the *six* months ended *June 30, 2025*, and the year ended *December 31, 2024*, the Company only had operating leases.

For operating leases, right-of-use ("ROU") assets and lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The present values of future lease payments are discounted using the interest rate implicit in the lease if it is readily determinable. As most leases do *not* provide an implicit rate, the Company applies an incremental borrowing rate based on the information available at commencement date to determine the present value of future lease payments over the lease term. The Company benchmarked itself against other companies with similar credit ratings and of comparable quality to derive an incremental borrowing rate. Lease expense is recognized on a straight-line basis over the lease term in the condensed consolidated statements of operations.

The Company elected to utilize the short-term lease exemption to exclude recognition of ROU assets and lease liabilities from the condensed consolidated balance sheet for leases with an initial term of *12* months or less, with payments instead being expensed on a straight-line basis over the lease term. If a lease includes options to extend the lease term, the Company does *not* assume the option will be exercised in its initial lease term assessment unless there is reasonable certainty that the Company will renew based on an assessment of economic factors present as of the lease commencement date. The Company monitors its plans to renew its material lease each reporting period.

The Company enters into contracts that contain both lease and non-lease components. Non-lease components include costs that do *not* provide a right-to-use a leased asset but instead provide a service such as maintenance costs. The Company has elected to account for the lease and non-lease components together as a single component for all classes of underlying assets. Variable costs associated with the lease, such as maintenance and utilities, are *not* included in the measurement of ROU assets and liabilities. Variable costs are expensed when the events determining the amount of variable consideration to be paid have occurred.

***South Carolina Office Lease Agreement***

On *September 27, 2022,* Old Catheter entered into a lease agreement for office space located in Fort Mill, South Carolina. The space is used for office and general use. The lease term began on *October 1, 2022* for 38 months, and included two months of free rent from the commencement date of the lease. The original lease agreement contains two distinct 36-month renewal periods, which require 180 days' notice of the Company's intention to exercise. In *June 202 5,* the Company notified the landlord of its intent to exercise its option to extend the lease for an additional 36 month period through the end of *December 1, 2028.* Accordingly, the Company remeasured the lease liability on the basis of the revised lease payments and lease term, such that the *first* extension option of 36 months has been included in operating right-of-use-assets and operating lease liabilities in the condensed consolidated balance sheet as of *June 30, 2025.* 

As of *June 30, 2025,* the Company does *not* intend to exercise the *second* extension option and the *second* option is therefore excluded from operating right-of-use assets and operating lease liabilities in the condensed consolidated balance sheet as of *June 30, 2025.*

***New Jersey Office Lease Agreement***

On *December 7, 2022,* Old Catheter entered into a lease agreement for office space located in Augusta, New Jersey. The space is used for office and general use. The lease term began on *January 1, 2023* for 24 months. The lease contained one 24-month renewal period, which required 9 months' notice of the Company's intent to exercise. In *March 2024,* the Company notified the landlord of its intent to extend the lease for a 12-month period. In *April 2024,* a lease extension agreement was entered into extending the lease through *December 31, 2025.* 

***Park City Office Lease Agreement***

On *March 19, 2023,* the Company entered into a lease agreement for office space located in Park City, Utah. The space is used for office and general use. The lease term began on *May 1, 2023* for 36 months. The lease contains one 36-month renewal period, which requires 180 days' notice of the Company's intention to exercise. As of *June 30, 2025*, the Company does *not* intend to exercise the extension option and the option is therefore excluded from operating right-of-use assets and operating lease liabilities in the condensed consolidated balance sheet as of *June 30, 2025.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *20*

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The following tables present supplemental condensed consolidated balance sheet information related to operating leases for the *three* and *six* months ended *June 30, 2025* and *2024* (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | ***For the Three Months Ended*** | ***For the Three Months Ended*** | ***For the Six Months Ended*** | ***For the Six Months Ended*** |
|  | ***June 30,*** | ***June 30,*** | ***June 30,*** | ***June 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Operating lease expense | $21 | $28 | $49 | $52 |
| Cash paid for leases | $26 | $29 | $53 | $53 |

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---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Weighted average remaining lease term (in years) - operating leases | 2.95 | 1.12 |
| Weighted average discount rate - operating leases | 9.25% | 8.58% |

---

Future minimum lease payments for all lease obligations for the following *five* fiscal years and thereafter are as follows (in thousands):

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| | |
|:---|:---|
| **Years ending December 31:** | ***Operating Leases*** |
| Remainder of 2025 | $50 |
| 2026 | 60 |
| 2027 | 48 |
| 2028 | 48 |
| Total minimum lease payments | 206 |
| Less effects of discounting | (26) |
| Present value of future minimum lease payments | $180 |

---

Operating lease right-of-use assets and lease liabilities were recorded in the condensed consolidated balance sheets as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Operating lease right-of-use assets, net | $178 | $105 |
| Current portion of operating lease liabilities | $86 | $98 |
| Operating lease liabilities | 94 | 13 |
| Total operating lease liabilities | $180 | $111 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *21*

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**Note *10.* Net Loss per Share**

The Company's Series A Convertible Preferred Stock, of which no shares were outstanding as of *June 30, 2025*, Series *X* Convertible Preferred Stock, Series B Convertible Preferred Stock, and outstanding warrants to purchase common stock have participation rights to any dividends that *may* be declared in the future, such that they are participating securities. Participating securities have the effect of diluting both basic and diluted earnings per share during periods of income. During periods of loss, *no* loss is allocated to the participating securities since the holders have *no* contractual obligation to share in the losses of the Company. All common share and per-share amounts for all periods presented reflect the Company's *1*-for-10 reverse stock split effective on *July 15, 2024.*

Anti-dilutive common share equivalents excluded from the computation of diluted net loss per share at *June 30, 2025*, consisted of 1,265,601 shares of common stock issuable upon conversion of Series *X* Convertible Preferred Stock, 6,369,063 shares of common stock issuable upon conversion of Series B convertible Preferred Stock, 20,502,073 shares of common stock issuable upon exercise of outstanding warrants and 2,415,435 shares of common stock issuable upon exercise of vested stock options. The weighted-average number of common shares outstanding includes 278,643 shares of common stock sold under the ATM Agreement on *June 30, 2025* but issued on *July 1, 2025.* Since these shares of common stock are issuable for **no* consideration and do **not* contain any other conditions that must be satisfied by the holder to ultimately receive such shares of common stock, these shares were included in the weighted-average number of common shares as of *June 30, 2025.*

Anti-dilutive common share equivalents excluded from the computation of diluted net loss per share at *June 30, 2024*, consisted of 231,412 shares of common stock issuable upon conversion of Series A Convertible Preferred Stock, 1,265,601 shares common stock issuable upon conversion of Series *X* Convertible Preferred Stock, 1,104,218 shares of common stock issuable upon exercise of outstanding warrants, and 91,456 shares of common stock issuable upon exercise of vested stock options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *22*

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**Note *11.* Equity Offerings**

****September 2024* Public Offering***

On *August 30, 2024,* the Company entered into an Underwriting Agreement (the "Underwriting Agreement") with Ladenburg Thalmann & Co. Inc. as representative ("Ladenburg") of the underwriters named in the Underwriting Agreement (the "Underwriters"). Pursuant to the Underwriting Agreement, the Company completed a public offering of its securities on *September 3, 2024 (*the *"September 2024* Public Offering") and sold an aggregate of (i) 805,900 common stock Units and (ii) 2,773,000 Pre-Funded Warrant Units at a public offering price of $1.00 per common stock Unit and $0.9999 per Pre-Funded Warrant Unit. The Company collected gross proceeds of approximately $3.6 million before deducting underwriting discounts, commissions, and offering expenses payable by the Company of $1.0 million, resulting in net proceeds of $2.6 million.

Each common stock Unit consisted of: (i) one share of the Company's common stock, (ii) a Series H Warrant to purchase one share of common stock at an exercise price of $1.00 per share that expired six months from the date of issuance, (iii) a Series I Warrant to purchase one share of common stock at an exercise price of $1.00 per share that expires eighteen months from the date of issuance, and (iv) a Series J Warrant to purchase one share of common stock at an exercise price of $1.00 per share that expires five years from the date of issuance.

Each Pre-Funded Warrant Unit consisted of: (i) one Pre-Funded Warrant to purchase one share of common stock at an exercise price of $0.0001 per share with *no* expiration date, (ii) one Series H Warrant, (iii) one Series I Warrant (iv) and one Series J Warrant.

Pursuant to the Underwriting Agreement, the Company granted Ladenburg a 45-day Overallotment Option to purchase up to (i) 468,041 additional shares of common stock, (ii) 468,041 additional Series H Warrants, (iii) 468,041 additional Series I Warrants, and/or (iv) 468,041 additional Series J Warrants, solely to cover over-allotments. On *August 30, 2024,* the Underwriters partially exercised the Overallotment Option to purchase an additional 458,623 shares of common stock, 458,623 Series H Warrants, 458,623 Series I Warrants, and 458,623 Series J Warrants, or 458,623 common stock Units. The common stock Units issued through the exercise of the Overallotment Option are included in the 805,900 common stock Units noted above. The Overallotment Option expired on *October 14, 2024.*

Furthermore, at the closing date, the Company agreed to deliver to Ladenburg warrants to purchase an aggregate number of shares of common stock equal to 6% of the shares of common stock (i) issued in connection with the *September 2024* Public Offering and (ii) issuable upon the exercise of the Pre-Funded Warrants. Therefore, the Company issued 214,734 warrants to Ladenburg and its designees (the "Representative Warrants"). The Representative Warrants are part of the underwriter costs and commissions incurred in connection with the *September 2024* Public Offering. The Representative Warrants *may* be exercised to purchase one share of common stock at an exercise price of $1.55 per share and expire five years from the date of issuance.

Each Series H Warrant, Series I Warrant, Series J Warrant (collectively, the "Series Warrants"), and Pre-Funded Warrant was immediately exercisable. The exercise price of the outstanding Series Warrants and Pre-Funded Warrants is subject to appropriate adjustment in the event of recapitalization events, stock dividends, stock splits, stock combinations, reclassifications, reorganizations or similar events affecting the Company's common stock. Subject to limited exceptions, a holder of the Series Warrants will *not* have the right to exercise any portion of its Series Warrants if the holder (together with such holder's affiliates) would beneficially own a number of shares of common stock in excess of 4.99%, or in the case of certain holders 9.99%, of the shares of common stock then outstanding (the "Beneficial Ownership Limitation"). Similarly, a holder of the Pre-Funded Warrants has a Beneficial Ownership Limitation of 9.99%. At the holder's option, the holder of the Series Warrants *may* increase the beneficial ownership limitation to 19.99% of the shares of common stock then outstanding, with any such increase becoming effective upon *61* days' prior notice to the Company.

The Representative Warrants became exercisable six months after the effective date of the Registration Statement filed by the Company on *August 29, 2024.* The Representative Warrants further have a Beneficial Ownership Limitation of 4.99%, which *may* be increased to 9.99% of the shares of common stock then outstanding at the option of Ladenburg. Any increase in the Beneficial Ownership Limitation will become effective upon *61* days' prior notice to the Company.

The Company assessed the Series Warrants, Pre-Funded Warrants, and Representative Warrants issued in connection with the *September 2024* Public Offering (collectively, the *"September 2024* Warrants") and determined that they do *not* require liability classification pursuant to ASC *480.* Furthermore, the *September 2024* Warrants do *not* have any net cash settlement provisions that would preclude equity classification under ASC *815*-*40.* Accordingly, the *September 2024* Warrants were recorded to additional paid-in capital in the condensed consolidated balance sheets.

All 2,773,090 Pre-Funded Warrant Units issued in the *September 2024* Public Offering were exercised during *2024.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *23*

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****2024* Warrant Inducement Offer***

On *October 25, 2024,* the Company executed the *2024* Warrant Inducement Offer with certain holders of the Company's existing warrants (Series E, Series F, Series G, Series H and Series I Warrants, collectively the *"2024* Existing Warrants"). Pursuant to the terms of the *2024* Warrant Inducement Offer, the Company agreed to lower the exercise price per share of common stock for all holders of the *2024* Existing Warrants, including those that did *not* participate in the *2024* Warrant Inducement Offer. The *2024* Existing Warrants had exercise prices ranging from $1.00 to $40.00 per share of common stock. Following the closing of the *2024* Warrant Inducement Offer, the Holders immediately exercised an aggregate of (i) 33,160.8 Series E Warrants, (ii) 499,909.34 Series F Warrants, (iii) 499,909.34 Series G Warrants, (iv) 1,990,000 Series H Warrants, and (v) 2,325,000 Series I Warrants to purchase 5,347,981 shares of common stock at a reduced exercise price of $0.70 per share. The Company received aggregate gross proceeds of $3.7 million in cash, prior to deducting placement agent fees and offering expense of $0.4 million.

In consideration for the immediate exercise of the *2024* Existing Warrants for cash, the Company issued unregistered new Series K common stock purchase warrants ("Series K Warrants") to purchase up to 10,695,962 shares of common stock. The Series K Warrants have an exercise price of $0.70 per share of common stock, were *not* exercisable until stockholders approval was obtained ("Stockholder Approval"), and have a term of 5.5 years following Stockholder Approval. In addition, the exercise price of the Series K Warrants is subject to appropriate adjustment in the event of recapitalization events, stock dividends, stock splits, stock combinations, reclassifications, reorganizations or similar events affecting the Company's common stock. Stockholder Approval was obtained on *January 13, 2025.*

In connection with the closing, the Company issued Placement Agent Warrants to the Placement Agent to purchase up to 320,879 shares of common stock on the same terms as the Series K Warrants, except that the exercise price is $1.085 per share and the warrants are exercisable six months after the date of issuance.

As a result of the *2024* Warrant Inducement Offer, the Company recorded a deemed dividend for the modification of the *2024* Existing Warrants and issuance of the Series K Warrants of $5.2 million for the year ended *December 31, 2024.* Furthermore, the Company assessed the Series K Warrants and Placement Agent Warrants and determined that they do *not* require liability classification pursuant to ASC *480.* The Series K Warrants and Placement Agent Warrants do *not* have any net cash settlement provisions that would preclude equity classification under ASC *815*-*40.* Accordingly, the Series K Warrants and Placement Agent Warrants were recorded to additional paid-in capital in the condensed consolidated balance sheets.

Pursuant to the terms of the *2024* Warrant Inducement Offer, in the event that the exercise of the *2024* Existing Warrants would cause a holder to exceed the beneficial ownership limitations included therein, the Company would issue the number of shares of common stock that would *not* cause a holder to exceed such beneficial ownership limitations and hold the remaining balance of shares of common stock in abeyance (the "Abeyance Shares"). The Abeyance Shares were evidenced through the holder's existing warrants, which are deemed to be prepaid. The Abeyance Shares were held by the Company until the holder sent notice that the remaining balance of shares of common stock could be issued without surpassing the beneficial ownership limitations.

During the *three* and *six* months ended *June 30, 2025*, the Company released and issued the remaining balance of 2,157,000 and 3,096,000 Abeyance Shares, respectively. Accordingly, the Company held no shares of common stock in abeyance as of *June 30, 2025*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *24*

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  ***May 2025* PIPE Financing***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On *May 12, 2025,* the Company entered into a Securities Purchase Agreement ("Securities Purchase Agreement") for a private placement with *three* institutional investors (*"May 2025* PIPE Financing"). Pursuant to the Securities Purchase Agreement, the Company sold an aggregate of (i) 1,500 PIPE Units and (ii) 1,500 additional shares of a new series of the Company's preferred stock, designated Series B Convertible Preferred Stock, par value $0.0001 per share. Each PIPE Unit consisted of: (i) one share of Series B Convertible Preferred Stock and (ii) Series L common stock purchase warrants ("Series L Warrants") to purchase approximately 2,858 shares of common stock at an exercise price of $0.50 per share. As consideration for the PIPE Units and Series B Convertible Preferred Stock, the Company collected gross proceeds of $1.5 million in cash and the QHSLab Notes, which had an initial fair value of $864 thousand as of the closing date, previously held by *one* of the investors, before deducting placement agent fees and offering expenses of $0.4 million (collectively, the "Placement Agent Fees").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Series L Warrants were *not* exercisable until stockholders' approval was obtained ("Stockholder Approval"), and expire 5.5 years thereafter. Each Series L Warrant is exercisable into one share of the Company's common stock and *may* be cashlessly exercised under certain circumstances. The exercise price of the Series L Warrants is subject to appropriate adjustment in the event of recapitalization events, stock dividends, stock splits, stock combinations, reclassifications, reorganizations or similar events affecting the Company's common stock. The Series L Warrants are callable by the Company for $0.01 per share if the volume-weighted average price of the Company's common stock for *20* consecutive trading days exceeds $1.50 per share and the Series L Warrants have *not* been exercised. Stockholder approval was obtained on *July 25, 2025.* 

In the event of certain transactions resulting in a change in control, at the option of the holder, the Company shall repurchase the Series L Warrants for an amount of cash equal to the Black Scholes Value of the unexercised portion of the Series L Warrants. However, if the change of control is *not* within the Company's control, then the holders shall receive the same type of consideration offered to the Company's common stockholders at the Black Scholes Value of the unexercised portion of the Series L Warrant. If the Company's common stockholders can choose the type of consideration (i.e., cash, stock, or other assets) to be received, then the Holders shall have the same choice. If the Company's common stockholders do *not* receive any consideration, they are deemed to receive common stock of the successor entity.

In the event of certain restructuring or disposal events, then upon the subsequent exercise of the Series L Warrants, for each share of common stock that would have been issuable upon exercise immediately prior to the event, the holders shall receive the number of shares of common stock of the successor entity and any alternate consideration given to common stockholders. The exercise price shall be adjusted to apply to such alternate consideration based on the amount of alternate consideration issuable for one share of common stock. If holders of common stock are given any choice as to the securities, cash or property to be received for alternate consideration, then the holder shall be given the same choice.

Subject to limited exceptions, the holders of Series L Warrants, will *not* have the right to exercise any portion of the warrant if the holder (together with such holder's affiliates) would beneficially own a number of shares of common stock in excess of 4.99% of the shares of common stock then outstanding (the "Beneficial Ownership Limitation"). At the holder's option, the holder *may* increase the Beneficial Ownership Limitation to 9.99% of the shares of common stock then outstanding, with any such increase becoming effective upon *61* days' prior notice to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In connection with the *May 2025* PIPE Financing, the Company also issued Placement Agent Warrants to purchase an aggregate of 257,143 shares of common stock at an exercise price of $0.5425 per share to the Placement Agent. The Placement Agent Warrants terminate 5 years from the date of issuance. The Placement Agent Warrants are *not* callable by the Company. Except for the exercise price, contract term, call option, and change in control provision, the Placement Agent Warrants have the same terms and conditions as the Series L Warrants.

The Company assessed the Series L Warrants and Placement Agent Warrants issued in connection with the *May 2025* PIPE Financing and determined that they do *not* require liability classification pursuant to ASC *480.* Furthermore, the Series L Warrants and Placement Agent Warrants do *not* have any net cash settlement provisions that would preclude equity classification under ASC *815*-*40.* Accordingly, the Series L Warrants and Placement Agent Warrants were recorded to additional paid-in capital in the condensed consolidated balance sheets.

See Note *12,* Preferred Stock for additional information on the Series B Convertible Preferred Stock issued by the Company in connection with the *May 2025* PIPE Financing.

In addition, the Company entered into a registration rights agreement with the investors requiring the Company to register for resale the shares of common stock issuable upon the conversion of the Series B Convertible Preferred Stock and Series L Warrants. Failure to timely maintain the registration shall lead to an obligation to pay to the investors cash liquidated damages equal to 2% of each investor's subscription amount for then outstanding securities for every *30*-day period the lapse continues, with unpaid amounts accruing interest at 18% per annum after a specified grace period.

On *May 21, 2025,* the Company filed the registration statement on Form S-*3* for the resale of shares of common stock issuable upon the conversion of the Series B Convertible Preferred Stock and Series L Warrants, and it was declared effective on *May 30, 2025.* It is *not* probable that the Company will be obligated to make payments under the registration rights agreement as of *June 30, 2025.*

 ***At the Market Offering Agreement***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On *May 19, 2025,* the Company entered into an At Market Offering Agreement (the " ATM Agreement") with Ladenburg. Under the ATM Agreement, the Company *may* offer and sell up to $1.3 million of shares of common stock, par value $0.0001 per share, through Ladenburg. On *June 13, 2025,* the Company filed a prospectus supplement increasing the aggregate amount available to be sold to $3.2 million under the ATM (the "Shares"). The Shares have been and will continue to be issued pursuant to the Company's previously filed and effective Registration Statement on Form S- *3* (File *No. 333*- *284217*), which was initially filed with the Securities and Exchange Commission on *January 10, 2025* and declared effective on *January 22, 2025.*

The Company has *no* obligation to sell, and Ladenburg is *not* obligated to buy or sell, any of the Shares under the ATM Agreement and *may* at any time suspend offers under the ATM Agreement. The ATM Agreement will terminate upon the earlier of (i) the issuance and sale of all of the shares through Ladenburg on the terms and subject to the conditions set forth in the ATM Agreement or (ii) termination of the ATM Agreement as otherwise permitted thereby. The ATM Agreement *may* be terminated at any time by either party upon *five* (*5*) business days' prior notice, or by Ladenburg at any time in certain circumstances, including the occurrence of a material adverse effect on the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has agreed to pay Ladenburg a commission equal to 3.0% of the aggregate gross proceeds from sale of its shares of common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of *June 30, 2025*, 4,183,589 shares of common stock had been sold under the ATM Agreement for gross proceeds of $1.7 million before deduction of commission and offering expenses of $0.2 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *25*

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***Warrants***

The following table presents the number of common stock warrants outstanding:

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| | |
|:---|:---|
| Warrants outstanding, December 31, 2024 | 19635513 |
| Issued | 4542860 |
| Exercised | (3096000) |
| Expired | (580300) |
| Warrants outstanding, June 30, 2025 | 20502073 |

---

As of *June 30, 2025* and *December 31, 2024*, all warrants outstanding are recorded in additional paid-in capital in the condensed consolidated balance sheets. The following table presents the number and type of common stock purchase warrants outstanding, their exercise price, and expiration dates as of *June 30, 2025*:

---

| | | | |
|:---|:---|:---|:---|
|  | ***Warrants*** |  |  |
| **Warrant Type** | ***Outstanding*** | ***Exercise Price*** | ***Expiration Date*** |
| August 2020 Warrants | 1943 | $4375.00 | 8/3/2025 |
| August 2020 Placement Agent Warrants | 192 | $5468.75 | 7/30/2025 |
| August 2021 Pharos Banker Warrants | 148 | $1495.00 | 8/16/2026 |
| February 2022 Series B Warrants | 39153 | $140.00 | 2/4/2029 |
| July 2022 Series C Warrants | 28402 | $140.00 | 7/22/2027 |
| September 2024 Series I Warrants | 1078900 | $0.70 | 3/3/2026 |
| September 2024 Series J Warrants | 3578901 | $1.00 | 9/3/2029 |
| September 2024 Representative Warrants | 214734 | $1.55 | 8/29/2029 |
| October 2024 Series K Warrants | 10695962 | $0.70 | 7/13/2030 |
| October 2024 Placement Agent Warrants | 320879 | $1.09 | 4/25/2030 |
| Series L Warrants | 4285716 | $0.50 | 1/25/2031 |
| Placement Agent Warrants May 2025 | 257143 | $0.54 | 5/12/2030 |
|  | 20502073 |  |  |

---

As of *June 30, 2025*, the warrants issued by the Company had a weighted average exercise price of $1.66.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *26*

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 ***Placement Fees***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In connection with offerings completed by the Company in *2022,* (the *"2022* Offerings"), the Company entered into an agreement with a placement agent that, subject to satisfaction of the requirements contained therein, called for a placement fee payable based on capital raised from certain investors for a definitive time following the expiration of the agreement. The accrued placement fee of approximat ely $1.4 million r elated to the *2022* Offerings is included in accrued expenses in the condensed consolidated balance sheets as of *June 30, 2025* and *December 31, 2024*. Additionally, the agreement called for the issuance of warrants with the following terms:

---

| | | |
|:---|:---|:---|
| **Number of shares** | **Exercise Price** | **Expiration** |
| 3300 | $312.50 | 5 years |
| 3100 | $175.00 | 5 years |

---

**Note *12.* Preferred Stock**

***Series *X* Convertible Preferred Stock***

Pursuant to the Merger Agreement, all Old Catheter common stock shares issued and outstanding and Convertible Promissory Notes, representing an aggregate principal balance of $25.2 million, were converted into a right to receive 14,649.592 shares of a new class of the Company's preferred stock, designated Series *X* Convertible Preferred Stock.

Series *X* Convertible Preferred Stock has *no* voting rights prior to the conversion into common stock. While there are generally *no* voting rights of the Series *X* Convertible Preferred Stock, there are protective rights regarding the sales of the company, change of control, etc. The remaining Series *X* Preferred Stock *may* convert into common stock only if the Company's common stock has been delisted from the NYSE American or has been approved for initial listing on the NYSE American or another stock exchange, at a rate of 100 shares of common stock for each share of Series *X* Convertible Preferred Stock.

Other than dividends payable in shares of common stock, Holders of Series *X* Convertible Preferred Stock will be entitled to receive dividends on shares of Series *X* Convertible Preferred Stock equal, on an as-if-converted-to-common stock basis, and in the same form as dividends actually paid on shares of common stock.

Upon consummation of the Merger, each holder of Old Catheter Convertible Promissory Notes received, in exchange for discharge of the principal of their Notes, a number of shares of the Company's Series *X* Convertible Preferred Stock representing a potential right to convert into the Company's common stock in an amount equal to *one* common share for each $32.00 of principal amount.

As of *June 30, 2025* and *December 31, 2024,* the remaining 12,656 shares of Series *X* Convertible Preferred Stock are outstanding and are expected to remain outstanding until the Company meets the initial listing standards of the NYSE American or another national securities exchange or is delisted from the NYSE American, at which time they will convert into common stock.

***Series A Convertible Preferred Stock***

On *January 9, 2023,* the Company entered into a Securities Purchase Agreement for a Private Placement with the Investor. Pursuant to the Securities Purchase Agreement, shares of Series A Convertible Preferred Stock were issued, the conversion of which was approved at the Stockholders' Meeting. After the final conversion on *July 23, 2024,* the Company had *no* shares of Series A Convertible Preferred Stock outstanding.

The Series A Convertible Preferred Stock converted into common stock at the option of the holder at the Preferred Conversion Rate, subject to certain ownership limitations as described below. The conversion price was subject to adjustment in the case of stock splits, stock dividends, combinations of shares and similar recapitalization transactions.

Subject to limited exceptions, holders of shares of Series A Convertible Preferred Stock did *not* have the right to convert any portion of their Series A Convertible Preferred Stock if the holder, together with its affiliates, would beneficially own in excess of 9.99% of the number of shares of the Company's common stock outstanding immediately after giving effect to its conversion.

Holders of Series A Convertible Preferred Stock were entitled to receive dividends on shares of Series A Convertible Preferred Stock equal, on an as-if-converted-to-common stock basis, and in the same form as dividends actually paid on shares of the common stock. Except as otherwise required by law, the Series A Convertible Preferred Stock did *not* have voting rights.

The Company also entered into a registration rights agreement with the purchasers requiring the Company to register for resale the shares of common stock issuable upon the conversion of the Series A Convertible Preferred Stock. Those shares of common stock were registered for resale on an effective registration statement on Form S-*1.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *27*

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All of the Series A Convertible Preferred Stock were converted as follows:

---

| | | |
|:---|:---|:---|
| **Date of Conversion** | **Series A Shares Converted** | **Common Shares Issued** |
| July 5, 2023 | 1750 | 109355 |
| July 24, 2023 | 875 | 54678 |
| January 24, 2024 | 875 | 54678 |
| July 1, 2024 | 1303 | 81423 |
| July 11, 2024 | 1000 | 62489 |
| July 22, 2024 | 1000 | 62500 |
| July 23, 2024 | 400 | 25000 |

---

Each share of Series A Convertible Preferred Stock was convertible into approximately 62.5 shares of common stock. The common stock was issued pursuant to the exemption contained in Section *3*(a)(*9*) of the Securities Act of *1933,* as amended (the "Act"), which applies to transactions in which a security is exchanged by an issuer with its existing security holders exclusively where *no* commission or other remuneration is paid or given directly or indirectly for soliciting such exchange. The shares issued have been registered for resale on an effective registration statement on Form S-*1.*

As of *June 30, 2025* and *December 31, 2024,* the Company had *no* shares of Series A Convertible Preferred Stock outstanding.

***Series B Convertible Preferred Stock***

On *May 12, 2025,* pursuant to the *May 2025* PIPE Financing, the Company issued 3,000 shares of Series B Convertible Preferred Stock. Each share of the Series B Convertible Preferred Stock has a par value of $0.0001 and a stated value of $1,000.

Subject to certain ownership limitations as described below, the Series B Convertible Preferred Stock was convertible into an aggregate of 8,571,429 shares of common stock at the option of the holder. The Series B Convertible Preferred Stock are convertible at a fixed conversion rate determined by dividing the stated value of the Series B Convertible Preferred Stock by the conversion price of $0.35, which approximates 2,857 shares of common stock issuable per share of Series B Convertible Preferred Stock. The conversion price is subject to adjustment in the case of stock dividends, stock splits, combination of shares and reclassification of shares. In the event of a stock dividend, reverse stock split, combination, or reclassification of shares of common stock, then, the conversion price shall be adjusted based on the number of shares of common stock outstanding immediately before and after such an event.

The holders could convert all of the Series B Convertible Preferred Stock upon the date stockholder approval was obtained ("Stockholder Approval"). Stockholder Approval was obtained on *July 25, 2025.* Prior to Stockholder Approval, the Series B Convertible Stock could only be converted into up to 2,202,357 shares of common stock (19.99% of the Company's outstanding common stock on the date of issuance of the Series B Convertible Preferred Stock). Notwithstanding the foregoing, the holders of shares of Series B Convertible Preferred Stock do *not* have the right to convert any portion of their Series B Convertible Preferred Stock if the holder, together with its affiliates, would beneficially own a number of shares of common stock in excess of 4.99% of the shares of common stock then outstanding (the "Beneficial Ownership Limitation"). At the holder's option, the holder *may* increase the Beneficial Ownership Limitation to 9.99% of the shares of common stock then outstanding, with any such increase becoming effective upon *61* days' prior notice to the Company.

Holders of Series B Convertible Preferred Stock are entitled to receive dividends and distributions on shares of Series B Convertible Preferred Stock equal to, on an as-if-converted-to-common stock basis, and in the same form as dividends and distributions actually paid on shares of common stock.

The Series B Convertible Preferred Stockholders do *not* have a preference upon any liquidation, dissolution, or winding-up of the Company. In the event of certain restructuring or disposal events, then upon any subsequent conversion of the Series B Convertible Preferred Stock, for each convertible share that would have been issuable upon conversion immediately prior to the event, the holders shall receive the number of shares of common stock of the successor entity and any alternate consideration given to common stockholders. The conversion price shall be adjusted to apply to such alternate consideration based on the amount of alternate consideration issuable for *one* share of common stock. If holders of common stock are given any choice as to the securities, cash, or property received for alternate consideration, the holders of Series B Convertible Preferred Stock shall be given the same choice.

The Series B Convertible Preferred Stock includes certain contingent payment provisions that should be bifurcated and accounted for as a derivative under ASC *815.* The estimated fair value of these embedded derivatives was deemed to be de minimis at issuance and at *June 30, 2025.*

Except as otherwise required by law, the Series B Convertible Preferred Stock do *not* have any voting rights.

Series B Convertible Preferred Stock were converted as follows:

---

| | | |
|:---|:---|:---|
| **Date of Conversion** | ***Series B Shares Converted*** | ***Common Shares Issued*** |
| June 11, 2025 | 771 | 2,202,357 |

---

As of *June 30, 2025*, the Company had 2,229 shares of Series B Convertible Preferred Stock outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *28*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Note *13.* Stock-Based Compensation**

 ***2018* Equity Incentive Plan***

The *2018* Equity Incentive Plan (the *"2018* Plan") was replaced by the *2023* Equity Incentive Plan (the *"2023* Plan"), as described below. As of *June 30, 2025*, 7 stock options granted under the *2018* Plan remained outstanding; 3 expire in *June 2028* and 4 expire in *January 2030.* 

****2018* Employee Stock Purchase Plan***

In *April 2024,* the Company formally terminated the *2018* Employee Stock Purchase Plan (the "ESPP"). Since inception through termination, the Company issued 95 shares under the ESPP. Upon termination, all reserved shares were released back to the authorized pool.

***2020* Inducement Equity Incentive Plan***

The Company adopted the *2020* Inducement Equity Incentive Plan (the *"2020* Plan") in *March 2020* and terminated it in *April 2024.* On adoption, 64 shares were reserved for issuance. At termination, the remaining reserved shares were released back to the authorized pool. No shares are reserved for future issuance under the *2020* Plan as of *June 30, 2025* and *December 31, 2024.*

***2023* Equity Incentive Plan***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In *July 2023,* the Company's stockholders approved the *2023* Plan as defined above, which provided for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, performance-based stock awards and other forms of equity compensation to the Company's employees, directors and consultants. Stock options granted under the *2023* Plan to employees and consultants generally will vest annually over a five-year period or as determined by the Board's Compensation Committee (the "Committee"), while grants to non-employee directors vest as determined by the Committee. As of *June 30, 2025* and *December 31, 2024*, 945,305 and 926,882 shares of common stock were reserved for issuance pursuant to future awards under the *2023* Plan. The number of shares available for issuance under the *2023* Plan also includes a quarterly increase commencing on *September 1, 2023* by an amount equal to the lesser of (i) 10% of the number equal to the number of shares of common stock outstanding on the applicable adjustment date less the number of shares of common stock outstanding at the beginning of the fiscal quarter immediately preceding the adjustment date, but if such number is a negative number, then the increase will be zero; or (ii) such lesser number of shares as *may* be determined by the Board.

For the six months ended *June 30, 2025*, the Committee approved *1,747,500* stock options with service-based conditions and *380,000* stock options with performance based conditions. The stock options with service-based conditions vest in equal installments over requisite service periods ranging from 2 to 5 years. Of the stock options with performance-based conditions, 225,000 contain performance conditions related to the achievement of specified quarterly sales targets in *2025* ("quarterly sales performance conditions") and *155,000* contain performance conditions related to the achievement of tiered sales targets for *2025* ("tiered sales performance conditions"). As of *June 30, 2025, none* of the quarterly sales performance conditions have been met and only 50% of the tiered sales performance conditions are expected to be met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *29*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The options granted for the *2023* Plan for the *six* months ended *June 30, 2025* were valued using the Black-Scholes model based on the following assumptions on the date of issue:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Options with Time-Based Vesting Conditions*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | ***Employee Options (5 years) Issued June 20, 2025*** | ***Non-Employee Director Options Issued January 29, 2025*** | ***CEO Options Issued January 29, 2025*** | ***Employee Options (4 years) Issued January 29, 2025*** | ***Employee Options (5 years) Issued January 29, 2025*** |
| Risk-free interest rate | 4.38% | 4.55% | 4.55% | 4.55% | 4.55% |
| Volatility | 100% | 98.00% | 97.50% | 97.40% | 98.20% |
| Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Expected life (in years) | 6.5 | 5.5 | 5.8 | 6.0 | 6.5 |

---

*Options with Performance-Based Vesting Conditions*

---

| | | |
|:---|:---|:---|
|  | ***Employee Options with Quarterly Sales Targets Issued January 29, 2025*** | ***Employee Options with Tiered Sales Targets Issued January 29, 2025*** |
| Risk-free interest rate | 4.55% | 4.55% |
| Volatility | 98.40% | 98.00% |
| Expected dividend yield | 0.00% | 0.00% |
| Expected life (in years) | 5.3 | 5.5 |

---

The following is a summary of stock option activity for the *2023* Plan options for the *six* months ended *June 30, 2025*:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | ***Weighted*** | ***Weighted*** |  |
|  |  | ***Average*** | ***Average*** | ***Aggregate*** |
|  | ***Stock*** | ***Exercise*** | ***Remaining*** | ***Intrinsic Value*** |
|  | ***Options*** | ***Price*** | ***Life*** | ***(in thousands)*** |
| Outstanding at December 31, 2024 | 70605 | $20.88 | 8.38 | $— |
| Options exercised |  |  | *—* | *—* |
| Options granted | 2127500 | 0.40 | *—* | *—* |
| Cancelled/forfeited | (287670) | 0.49 | *—* | *—* |
| Outstanding at June 30, 2025 | 1910435 | $1.14 | 9.50 | $— |
| Vested and expected to vest at June 30, 2025 | 1910435 | $1.14 | 9.50 | $— |
| Exercisable at June 30, 2025 | 281204 | $4.94 | 8.46 | $— |

---

The weighted-average grant-date fair value of the *2023* Plan options granted during the *six* months ended *June 30, 2025* was $0.27 per share.

***Non-Plan Options Issued***

On *January 6, 2025,* the Board approved and issued a total of 500,000 Non-Plan Options as an employee incentive to the Chief Financial Officer. The options vest monthly over 3 years with an exercise price of $0.53 and an expiration date of *January 6, 2035.*

The Non-Plan Options issued were valued using the Black-Scholes model based on the following assumptions on the date of issue:

---

| | |
|:---|:---|
|  | ***Non-Plan Options Issued January 6, 2025*** |
| Risk-free interest rate | 4.62% |
| Volatility | 97.00% |
| Expected dividend yield | 0.00% |
| Expected life (in years) | 5.8 |

---

The following is a summary of stock option activity for the Non-Plan options for the *six* months ended *June 30, 2025*:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | ***Weighted*** | ***Weighted*** |  |
|  |  | ***Average*** | ***Average*** | ***Aggregate*** |
|  | ***Stock*** | ***Exercise*** | *Remaining* | ***Intrinsic Value*** |
|  | ***Options*** | ***Price*** | ***Life*** | ***(in thousands)*** |
| Outstanding at December 31, 2024 | 25000 | $5.32 | 9.33 | $— |
| Options exercised |  |  | *—* | *—* |
| Options granted | 500000 | 0.53 | *—* | *—* |
| Cancelled/forfeited | (20000) | 5.32 | *—* | *—* |
| Outstanding at June 30, 2025 | 505000 | $0.58 | 9.43 | $— |
| Vested and expected to vest at June 30, 2025 | 505000 | $0.58 | 9.43 | $— |
| Exercisable at June 30, 2025 | 74445 | $0.85 | 8.89 | $— |

---

The weighted-average grant-date fair value of the Non-Plan options granted during the *six* months ended *June 30, 2025* was $0.42 per share.

***Restricted Stock Awards***

A summary of the restricted stock award activity for the *six* months ended *June 30, 2025* is presented below:

---

| | | |
|:---|:---|:---|
|  |  | ***Weighted*** |
|  |  | ***Average*** |
|  | ***Restricted*** | ***Grant Date*** |
|  | ***Stock Awards*** | ***Fair Value*** |
| Outstanding at December 31, 2024 |  | $— |
| Granted | 100000 | 0.47 |
| Vested | (100000) | 0.47 |
| Cancelled/forfeited |  |  |
| Outstanding at June 30, 2025 |  | $— |

---

Stock-based compensation expense is recorded in selling, general and administrative expenses in the condensed consolidated statements of operations. Stock-based compensation expense for the *three* and *six* months ended *June 30, 2025* was $98 thousand and $189 thousand, respectively. Stock-based compensation expense for the *three* and *six* months ended *June 30, 2024* was $13 thousand and $19 thousand, respectively.

Total unrecognized estimated stock-based compensation expense by award type and the remaining weighted average recognition period over which such expense is expected to be recognized at *June 30, 2025* was as follows:

---

| | | |
|:---|:---|:---|
|  | ***Unrecognized Expense (in thousands)*** | ***Remaining Weighted Average Recognition Period*** |
| Stock options (Non-Plan Options) | $175 | 2.5 |
| Stock options (2023 Plan Options) | $609 | 3.4 |
| Restricted stock awards | $— | *—* |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *30*

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**Note *14.* Asset Acquisitions**

On *January 24, 2025,* the Company acquired 100% of the membership interests of Perikard, LLC, which was accounted for as an asset acquisition consisting primarily of a single patent for pericardial access technology. The Company issued 275,000 shares of its common stock valued at $113 thousand as consideration and is obligated to make royalty payments equal to 10% of net sales of the pericardial access kit for five years following the closing date. The patent was determined to be IPR&D with *no* alternative future use, and accordingly, the Company recognized $119.0 thousand, consisting of $113.0 thousand of stock consideration and $6.0 thousand of direct transaction costs for the *six* months ended *June 30, 2025*. As of *June 30, 2025*, the Company has *not* recognized a liability for the contingent royalty payments because they are currently *not* probable or reasonably estimable.

On *May 5, 2025,* Cardionomix acquired certain assets from Cardionomic. The assets primarily related to Cardionomic's CPNS System, which represents a novel technology for the late-stage treatment of acute decompensated heart failure.

The acquisition was accounted for as an asset acquisition consisting primarily of an IPR&D Asset (the CPNS System). The Company issued 1,000,000 shares of its restricted common stock valued at $0.3 million, and Cardionomix issued a promissory note recorded at a carrying amount of $1.3 million (the "Note Payable"), as consideration to Cardionomic. The common stock issued has *not* been registered under the Securities Act, such that the shares *may not* be transferred by the Seller absent an effective registration statement or an exemption from registration. Furthermore, the common stock could *not* be transferred for *six* months after the closing date, after which Cardionomic *may* only transfer the common stock to permitted transferees with the express written consent of the Company, which shall *not* be unreasonably withheld. The IPR&D Asset was determined to have *no* alternative future use, and accordingly, the Company expensed the costs of acquisition of $1.8 million, consisting of $0.3 million in stock consideration, $1.3 million of promissory note, and $0.3 million in direct transaction costs, as acquired research and development expenses in the condensed consolidated statements of operations for the *three* and *six* months ended *June 30, 2025*.

See Note *7,* Notes Payable for additional information for additional information on the Note Payable.

**Note *15.* Income Taxes**

The provision for income taxes for interim periods is determined using an estimated annual effective tax rate. The effective tax rate *may* be subject to fluctuations during the year as new information is obtained, which *may* affect the assumptions used to estimate the annual effective tax rate, including factors such as valuation allowances against deferred tax assets, the recognition or de-recognition of tax benefits related to uncertain tax positions, if any, and changes in or the interpretation of tax laws in jurisdictions where the Company conducts business.

For the *three* and *six* months ended *June 30, 2025*, the Company recorded federal income tax benefit of $950 thousand and $1,674 thousand, respectively, and no state income tax provision or benefit. For the *three* and *six* months ended *June 30, 2024* the Company recorded no provision or benefit for federal and state income tax expense. The federal income tax benefit primarily relates to an increase in net operation losses that are *not* subject to limitations under Section *382* of the Internal Revenue Code. The Company's net deferred tax assets generated mainly from net operating losses are fully offset by a valuation allowance as the Company believes it is *not* more likely than *not* that the benefit will be realized. The Company will continue to assess its position in future periods to determine if it is appropriate to reduce a portion of its valuation allowance in the future.

The Company has *no* open income tax audits with any taxing authority as of *June 30, 2025*.

**Note *16.* Commitments and Contingencies**

In the normal course of business, the Company is at times subject to pending and threatened legal actions. In management's opinion, any potential loss resulting from the resolution of these matters will *not* have a material effect on the results of operations, financial position or cash flows of the Company.

As of *June 30, 2025*, the Company had *no* outstanding litigation.

**Note *17.* Related Parties**

Prior to the Merger, David A. Jenkins, the Company's current Executive Chairman of the Board and Chief Executive Officer, and Old Catheter's Chairman of the Board of Directors, and his affiliates held approximately $25.1 million of Old Catheter's Convertible Promissory Notes, or the Notes, that were converted into 7,856.251 shares of Series *X* Convertible Preferred Stock in connection with the Merger (see Note *12,* Preferred Stock). In consideration for forgiving the interest accrued but remaining unpaid under the Notes in an aggregate amount of approximately $13.9 million, Mr. Jenkins and his affiliates also received royalty rights equal to approximately 12% of the net sales, if any, of LockeT, commencing upon the *first* commercial sale and through *December 31, 2035.* The Company entered into an additional royalty agreement for the LockeT device with Auston Locke, who is the son of Robert Locke, VP of Product Development. Under this agreement, the Company will pay a 5% royalty rate on net sales up to $1 million in cumulative royalties. In *April 2025,* a US patent was granted by the United States Patent and Trademark Office, after which the Company is obligated to pay an additional royalty of 2% of net sales only after the initial $1.0 million of 5% royalties has been paid, up to a maximum of $10.0 million in additional royalties. Refer to Note *2,* Summary of Significant Accounting Policies and Note *8,* Royalties Payable for additional information over the royalties payable due to these related parties.

In addition to the shares described above that were issued in connection with the Notes, Mr. Jenkins and his affiliates received 1,325.838 shares of Series *X* Convertible Preferred Stock in the Merger, and Mr. Jenkins' adult children received 1,284.344 shares of Series *X* Convertible Preferred Stock in the Merger, all in exchange for their equity interests in Old Catheter in accordance with the Merger exchange ratio. As of *June 30, 2025*, a total of 9,239.285 shares of Series *X* Preferred Stock were held by these related parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *31*

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Mr. Jenkins' daughter, the Company's non-executive Chief Operating Officer, received options to purchase 14,416 shares of the Company's common stock upon the closing of the Merger in exchange for her options to purchase shares of Old Catheter common stock, converted based on the exchange ratio in the Merger. Of the total options to purchase 14,416 shares of the Company's common stock, 14,081 options have an exercise price of $5.90 per share, and the remaining 335 options have an exercise price of $20.20 per share.

On *May 1, 2024,* Marie-Claude Jacques, the Company's then Chief Commercial Officer, received a non-plan option to purchase 25,000 shares of the Company's common stock. The options have an exercise price of $5.321 per share, vest at 20% per year for 5 years and expire in *May 2034.* On *January 29, 2025,* Ms. Jacques received an incentive stock option to purchase 250,000 shares of the Company's common stock. The options had an exercise price of $0.42 per share, 25,000 options vested on the grant date and an additional 25,000 options were to vest annually for 4 years, 31,250 options were to vest quarterly upon achievement of quarterly sales targets during *2025* and expire in *January 2035.* Ms. Jacques' employment was terminated on *June 2, 2025,* and all unvested options were cancelled, consisting of 20,000 unvested non-plan options and 225,000 unvested incentive stock options.

During the year ended *December 31, 2024,* the Company entered into various short-term promissory notes with various related parties (the "Related Party Notes"). These Related Party Notes had a maturity date of *August 30, 2024* and interest rates of 8% per annum. On *August 23, 2024,* the Notes were amended to extend the maturity date to *January 31, 2026* and increase the interest rate to 12% per annum effective *August 31, 2024.* See Note *7,* Notes Payable for further information.

The related parties and the amounts owed to each related party as of *June 30, 2025* are summarized in the following table (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| **Related Party** | ***Issuance Date*** | ***Principal Amount*** | ***Interest Accrued*** |
| David Jenkins | 5/30/2024 | $500 | $50 |
| FatBoy Capital | 6/25/2024 | $150 | $15 |
| FatBoy Capital | 7/1/2024 | $250 | $25 |
| FatBoy Capital | 7/18/2024 | $100 | $10 |
| Jenkins Family Charitable Institute | 7/25/2024 | $500 | $51 |

---

On *September 3, 2024,* the Jenkins Family Charitable Institute also invested approximately $500,000 in the Company's public offering and received 265,000 shares of common stock; 235,000 pre funded warrants with an exercise price of $0.0001 and *no* expiration date; 500,000 Series H Warrants with an exercise price of $1.00 per share that expired on *March 3, 2025;* 500,000 Series I Warrants with an exercise price of $1.00 per share that expire on *March 3, 2026;* and 500,000 Series J Warrants with an exercise price of $1.00 per share that expire on *September 3, 2029.* 

On *October 28, 2024,* the Jenkins Family Charitable Institute exercised all 235,000 pre funded warrants and received 235,000 shares of common stock of the Company. On *December 31, 2024,* the Jenkins Family Charitable Institute distributed 450,000 Series J warrants to its trustee and *two* advisors, who are daughters of Mr. Jenkins.

On *January 6, 2025,* Philip Anderson, the Company's Chief Financial Officer, received a non-plan option to purchase 500,000 shares of the Company's common stock. The options have an exercise price of $0.53 per share, vest monthly over 36 months and expire in *January 2035.*

In *February 2025,* Catheter formed its subsidiary Cardionomix. The capitalization structure of the newly formed entity included 82% of the common stock of Cardionomix held by the Company, 5% of the common stock of Cardionomix held by Mr. Jenkins, 7% of the common stock by affiliates of Mr. Jenkins, and the remaining 6% held by *third* parties.

On *June 20, 2025,* Catheter formed a new subsidiary, KardioNav. The capitalization structure of the newly formed entity include 57% of the common stock of KardioNav held by the Company, 33% of the common stock of KardioNav held by Chelak iECG, Inc., an unrelated *third* party, 3% of the common stock of KardioNav held by Mr. Jenkins and 7% of the common stock of KardioNav held by affiliates of Mr. Jenkins.

**Note *18.* Subsequent Events**

***Issuance of Short Term Promissory Notes by KardioNav***

On *July 11, 2025, two* short term promissory notes of $150 thousand each were issued by KardioNav to the Company's Chief Executive Officer and Lifestim, Inc., a company controlled by the Company's Chief Executive Officer in exchange for an aggregate loan of $300 thousand. The promissory notes have a maturity date of *July 11, 2026,* and interest rates of 4.2% per annum, payable upon maturity.

***Enactment of U.S. Tax Legislation***

On *July 4, 2025,* the One Big Beautiful Bill was enacted ("OBBBA"), introducing significant and wide-ranging changes to the U.S. federal tax system. Significant components include restoration of *100%* accelerated tax depreciation on qualifying property including expansion to cover qualified production property. Another major aspect incudes the return to immediate expensing of domestic research and experimental expenditures ("R&E") which in some cases *may* include retroactive application back to *2021* for businesses with gross receipts of less than *$31* million or accelerated tax deductions of R&E that was previously capitalized for larger businesses. The legislation also reinstates EBITDA-based interest deductions for tax purposes and makes several business tax incentives permanent. Less favorable business provisions include limitations on tax deductions for charitable contributions. The Company is currently assessing the potential impact of this legislation on its future financial position, results of operations, and cash flows. In accordance with U.S. GAAP, the effects will be recognized in the period of enactment.

***Amendment to the Amended and Restated Certificate of Incorporation***

On *July 25, 2025,* at the annual meeting of stockholders of the Company, the stockholders approved an amendment to the Amended and Restated Certificate of Incorporation of the Company (the "Amendment") to effect a reverse stock split within specified parameters. The Board approved the Amendment and set the ratio of the reverse stock split at *1*-for-*19.* The Amendment will be effective at *12:01* AM Eastern Standard Time on *August 15, 2025,* effecting a reverse stock split in which each *nineteen* (19) shares of the Company's common stock issued and outstanding, par value $0.0001, immediately prior to the effective time will automatically be combined into *one* (*1*) validly issued, fully paid and non-assessable share of common stock, without any action on the part of the holders.

*No* fractional shares will be issued as a result of the reverse stock split and all fractional shares will be settled in cash. The reverse stock split will affect all stockholders uniformly and will *not* alter any stockholder's percentage interest in the Company's equity (other than as a result of the settlement in cash of fractional shares). The Company's authorized capital stock, consisting of 60 million shares of common stock and 10 million shares of preferred stock, will remain unchanged.

The reverse stock split will decrease the number of issued and outstanding shares at the time, from approximately 18,861,579 to approximately 992,714 as of *June 30, 2025.* Common stock issuable upon conversion of outstanding shares of Series *X* convertible preferred stock will decrease from 1,265,601 to approximately 66,610, common stock issuable upon conversion of outstanding shares of Series B convertible preferred stock will decrease from 6,369,063 to approximately 335,213, common stock issuable upon exercise of outstanding warrants will decrease from 20,502,073 to approximately 1,079,051, and common stock issuable upon exercise of outstanding stock options will decrease from 2,415,435 to approximately 127,128 as of *June 30, 2025.*

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| | | | | |
|:---|:---|:---|:---|:---|
|  | ***For the Three Months Ended*** | ***For the Three Months Ended*** | ***For the Six Months Ended*** | ***For the Six Months Ended*** |
|  | ***June 30,*** | ***June 30,*** | ***June 30,*** | ***June 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Net loss per share attributable to Catheter Precision, Inc., basic and diluted - pro forma | $(7.28) | $(105.87) | $(14.09) | $(174.58) |
| Weighted-average common shares used in computing net loss per share, basic and diluted - pro forma | 701896 | 39860 | 649556 | 39495 |

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

**Special Note Regarding Forward Looking Statements**

This Quarterly Report on Form 10-Q, or Quarterly Report, contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available. This section should be read in conjunction with our unaudited condensed financial statements and related notes included in Part I, Item 1 of this report. The statements contained in this Quarterly Report that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Forward-looking statements can be identified by words such as "believe," "anticipate," "may," "might," "can," "could," "continue," "depends," "expect," "expand," "forecast," "intend," "predict," "plan," "rely," "should," "will," "may," "seek," or the negative of these terms and other similar expressions, although not all forward-looking statements contain these words. These statements include, but are not limited to, our expectations with respect to our timing and need for future financing, including our ability to increase the availability under our at-the-market offering, expectations regarding Cardionomix clinical trials and FDA approval, and our expectations with respect to developing the products that may be offered by our Cardionomix and KardioNav subsidiaries. You should read these statements carefully because they discuss future expectations, contain projections of future results of operations or financial condition, or state other "forward-looking" information. These statements relate to our future plans, objectives, expectations, intentions and financial performance and the assumptions that underlie these statements.

These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, but not limited to, those described in Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2024. These risks include, but are not limited to, that: we will be unable to develop the assets acquired in by KardioNav and Cardionomix unless we are able to obtain additional financing, which may not be available on acceptable terms or at all, the results of anticipated trials may not turn out as we currently expect and future trials may not occur on the time tables we expect or may be more costly than anticipated, we will be required to raise additional funds to finance our operations and continue as a going concern , and we may not be able to do so when necessary, and/or the terms of any financings may not be advantageous to us, and we may require additional funds sooner than our current expectations; our business has a history of losses, will incur additional losses, and may never achieve profitability; our ability to increase our at-the-market offering availability is subject to obtaining necessary approvals, certifications, legal opinions and accounting comfort letters, and there is no guaranty that we can do so successfully, we have identified material weaknesses in our internal control over financial reporting and these material weaknesses could adversely affect our ability to report our results of operations and financial condition accurately and in a timely manner; compliance with Sarbanes-Oxley Act Section 404 could have a material adverse impact on our business; we will not be able to reach profitability unless we are able to achieve our product expansion and growth goals; our VIVO launch plans require significant investment in infrastructure and sales representatives; our research and development and commercialization efforts may depend on entering into agreements with corporate collaborators; we have entered into joint marketing agreements with respect to our products, and may enter into additional joint marketing agreements, that will reduce our revenues from product sales; royalty agreements with respect to LockeT, the surgical vessel closing pressure device, will reduce any future profits from this product; if we experience significant disruptions in our information technology systems, our business may be adversely affected; litigation and other legal proceedings may adversely affect our business; if we make acquisitions or divestitures, we could encounter difficulties that harm our business; failure to attract and retain sufficient qualified personnel could also impede our growth; our revenues may depend on our customers' receipt of adequate reimbursement from private insurers and government sponsored healthcare programs; we may be unable to compete successfully with companies in our highly competitive industry, many of whom have substantially greater resources than we do; our future operating results depend upon our ability to obtain components in sufficient quantities on commercially reasonable terms or according to schedules, prices, quality and volumes that are acceptable to us, and suppliers may fail to deliver components, or we may be unable to manage these components effectively or obtain these components on such terms; if hospitals, physicians and patients do not accept our current and future products or if the market for indications for which any product candidate is approved is smaller than expected, we may be unable to generate significant revenue, if any; the recent coronavirus outbreak ("COVID-19") adversely affected our financial condition and results of operations and we cannot provide any certainty as to whether there will be future impacts from COVID-19 or another pandemic; a variety of risks associated with marketing our products internationally could materially adversely affect our business; the impact of the military conflicts in Ukraine and Israel, and the actions that have been and could be taken by other countries, including new and stricter sanctions and actions taken in response to such sanctions, have affected, and may continue to affect, our business and results of operations, including our supply chain; if the third parties on which we rely for the conduct of our clinical trials and results do not perform our clinical trial activities in accordance with good clinical practices and related regulatory requirements, we may be unable to obtain regulatory approval for or commercialize our product candidates; we may be adversely affected by product liability claims, unfavorable court decisions or legal settlements; our ability to use our net operating loss carryforwards may be limited; we are subject to pervasive and continuing regulation by the FDA and other regulatory agencies; our products may be subject to additional recalls, revocations or suspensions after receiving FDA or foreign approval or clearance, which could divert managerial and financial resources, harm our reputation, and adversely affect our business; changes in trade policies among the United States ("U.S.") and other countries, in particular the imposition of new or higher tariffs, could place pressure on our average selling prices as our customers seek to offset the impact of increased tariffs on their own products; increased tariffs or the imposition of other barriers to international trade could have a material adverse effect on our revenues and operating results; product clearances and approvals can often be denied or significantly delayed, although we have obtained regulatory clearance for our VIVO and LockeT products in the U.S. and certain non-U.S. jurisdictions, our business plans include expanding uses for our products, which will require additional clearances; even after clearance is obtained, our products remain subject to extensive regulatory scrutiny; if we or our suppliers fail to comply with the FDA's Quality System Regulation, or QSR, or any applicable state equivalent, our operations could be interrupted, and our potential product sales and operating results could suffer; if any of our products cause or contribute to a death or a serious injury, or malfunction in certain ways, we will be required to report under applicable medical device reporting regulations, which can result in voluntary corrective actions or agency enforcement actions; healthcare reform initiatives and other administrative and legislative proposals may adversely affect our business, financial condition, results of operations and cash flows in our key markets, and if we are unable to obtain and maintain patent protection for our products, our competitors could develop and commercialize products and technology similar or identical to ours, and our ability to successfully commercialize our existing products and any products we may develop, and our technology may be adversely affected.

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These forward-looking statements reflect our beliefs and views with respect to future events and are based on estimates and assumptions as of the date of this Quarterly Report and are subject to risks and uncertainties. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. We qualify all of the forward-looking statements in this Quarterly Report by these cautionary statements. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, whether as a result of new information, future events or otherwise.

This Quarterly Report also contains estimates, projections and other information concerning our industry, our business, and the markets for certain diseases, including data regarding the estimated size of those markets. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly stated, we obtained this industry, business, market, and other data from reports, research surveys, studies, and similar data prepared by market research firms and other third parties, industry, medical and general publications, government data, and similar sources.

References to "we", "us", "our" and "the Company" refer to Catheter Precision, Inc.

**Overview**

Catheter Precision, Inc. ("Catheter" or the "Company) was incorporated in California on September 4, 2002, and reincorporated in Delaware in July 2018. Catheter was initially formed to develop, commercialize, and market its advanced excimer laser-based platform for use in the treatment of vascular and dermatological immune-mediated inflammatory diseases. On January 9, 2023, the Company merged with the former Catheter Precision, Inc. ("Old Catheter"), a privately held Delaware corporation (the "Merger"), which became a wholly owned subsidiary of the Company. Our current activities primarily relate to Old Catheter's historical business, which comprises the design, manufacture and sale of new and innovative medical technologies focused on the field of cardiac electrophysiology (EP).

On February 17, 2025, the Company formed a new subsidiary, Cardionomix, Inc. ("Cardionomix"), to acquire certain assets previously held by Cardionomic, Inc. ("Cardionomic"), a third party entity that had ceased operations. We own 82% of Cardionomix's issued and outstanding common stock. Our Chief Executive Officer and Chairman of the Board and certain of his affiliates own 12%, while the remaining 6% of the outstanding common stock was issued to certain third parties as finder's fees for the asset acquisition (see Note 14, Asset Acquisition in the consolidated financial statements included elsewhere in this Quarterly Report). On May 5, 2025, Cardionomix acquired certain assets primarily related to the Cardiac Pulmonary Nerve Stimulation ("CPNS") System previously held by Cardionomic (see Note 14, Asset Acquisition in the consolidated financial statements included elsewhere in this Quarterly Report). The CPNS System represents a novel technology for the late-stage treatment of acute decompensated heart failure by stimulating the autonomic cardiac nerves to restore autonomic balance. The CPNS System is in development and has yet to obtain regulatory approval. Cardionomix plans to complete the pivotal clinical trial for the CPNS System and obtain necessary regulatory approvals from the FDA for use and commercialization.

On June 20, 2025, the Company formed a new subsidiary, KardioNav, Inc. ("KardioNav"), to pursue the advancement, development, and commercialization of certain intellectual property assigned to KardioNav. The Company transferred certain intellectual property related to the VIVO System to KardioNav, which is not currently being developed by the Company, while Chelak, an unrelated third party, transferred certain patents related to a medical device designed to interface with implanted cardiac devices to KardioNav. KardioNav intends to integrate the VIVO mapping intellectual property with Chelak's assigned patents to develop a system that interfaces with implanted cardiac devices to enable improved pre-ablation mapping and more precise localization of arrhythmogenic tissue. Research and development activities are in the planning phase for this medical device. The Company owns 57% of the subsidiary's issued and outstanding common stock, while Chelak owns 33% of the subsidiary's issued and outstanding common stock. The Company's Chief Executive Officer and Chairman of the Board of Directors and certain of his affiliates own the remaining 10% of the subsidiary's issued and outstanding common stock.

One of our two primary products is the View into Ventricular Onset ("VIVO" or "VIVO System"), which is a non-invasive imaging system that offers 3D cardiac mapping to help with localizing the sites of origin of idiopathic ventricular arrhythmias in patients with structurally normal hearts prior to EP procedures.

We have received FDA clearance to market and promote the VIVO System in the U.S. as a pre-procedure planning tool for patients with structurally normal hearts undergoing ablation treatment for idiopathic ventricular arrhythmias. VIVO allows for the acquisition, analysis, display and storage of cardiac electrophysiological data and maps for analysis by a physician. To date, VIVO has been utilized in more than 1,000 procedures in the U.S. and EU by over 30 physicians, with no reported device-related complications.

We have been cleared to label the VIVO System with the CE Mark in the EU and certain other countries. The CE Mark designation, which affirms the product's conformity with European health, safety, and environmental protection standards, allows us to market that product in countries that are members of the EU and the European Free Trade Association. Catheter has commenced limited sales of the VIVO System in Europe and the UK through independent distributors. Catheter's international distributors are supported by two EU-based full-time consultants.

Our second and newest primary product, LockeT® ("LockeT"), is a suture retention device indicated for wound healing by distributing suture tension over a larger area in the patient in conjunction with a figure of eight suture closure. LockeT is intended to temporarily secure sutures and aid clinicians in locating and removing sutures efficiently. LockeT is a sterile Class I product that was registered with the FDA in February 2023, at which time we began initial shipments to distributors. In May 2023, Catheter submitted LockeT for CE Mark approval. CE Mark approval was received in April 2025. We are in discussion with multiple international distributors to sell LockeT in countries which require CE Mark before marketing can begin.

In May 2024, we recognized our first sale of LockeT. In September 2024, we received notification of the issuance of our first LockeT patent in the country of China and we also completed a Middle East distribution agreement for LockeT. In April 2025, we received notification of the issuance of our first LockeT patent in the United States by the United States Patent and Trademark Office.

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Clinical studies for LockeT began during the year ended December 31, 2023. The current studies are planned to show the product's effectiveness and benefits, including faster wound closure and patient ambulation/discharge, potentially resulting in higher procedural volumes and lower costs for the healthcare provider and/or insurance payor. These clinical studies are intended to provide crucial data for marketing and to expand our indications for use with the FDA. For more information about our clinical studies, refer to Item 1, Business in our Form 10-K.

Our business strategy is to become a leading medical device company in the field of cardiac electrophysiology, and we are dedicated to developing and delivering electrophysiology products to provide patients, hospitals, and physicians with novel technologies and solutions to improve the lives of patients with cardiac arrhythmias. We aim to establish both LockeT and VIVO as integral tools used by cardiac electrophysiologists and their colleagues during ablation treatment of ventricular arrhythmias by reducing procedure time, patient complications and increasing procedural success.

**Recent Developments**

*PeriKard Asset Acquisition*

On January 14, 2025, we entered into a Membership Interest Purchase Agreement (the "Agreement") with Cardiofront, LLC ("Seller") to purchase the issued and outstanding membership interests of PeriKard, LLC, a wholly-owned subsidiary of Seller. The primary purpose was to purchase patented technology for commercialization within the broader cardiac treatment and electrophysiology industry. Pursuant to the Agreement, we issued 275,000 shares of our common stock valued at $113 thousand to the Seller in exchange for 100% of the membership interests of PeriKard, LLC ("Acquisition"). Furthermore, we may be obligated to make royalty payments equal to 10% of net sales of the pericardial access kit for five years following the closing date. The PeriKard pericardial access kit is a medical procedure kit and method for draining fluid from an organ. The technology is in development and has not been commercialized. This transaction closed on January 24, 2025.

The Acquisition was accounted for as an asset acquisition consisting primarily of a single patent for pericardial access technology. The patent was determined to be in-process research and development ("IPR&D") with no alternative future use, and accordingly, we recognized $119 thousand, consisting of $113 thousand of stock consideration and $6 thousand of direct transaction costs, as acquired in-process research and development in the condensed consolidated statements of operations for the three months ended March 31, 2025. As of June 30, 2025, we have not recognized a liability for the contingent royalty payments because they are currently not probable or reasonably estimable.

*Cardionomic Asset Acquisition*

On May 5, 2025, Cardionomix acquired the CPNS System. As consideration to Cardionomic, we issued 1,000,000 shares of our restricted common stock valued at $0.3 million, and Cardionomix issued a promissory note valued at $1.3 million (the "Note Payable"). The Note Payable was issued with a principal balance of $1.5 million and stated interest of 4% per annum with no interest or principal payable until the maturity date, which is three years following the date of issuance. The acquisition was accounted for as an asset acquisition consisting primarily of the CPNS System, which was deemed to be an IPR&D Asset with no alternative future use. Accordingly, we recognized the consideration transferred of $1.9 million, consisting of $0.3 million in stock consideration, $1.3 million in note payable, and $0.3 million in direct transaction costs, as acquired research and development expense in the condensed consolidated statement of operations for the three and six month period ended June 30, 2025. The minority equity interest holders are presented as non-controlling interests in the accompanying condensed consolidated balance sheets, statements of operations, and statements of stockholders' equity.

*May 2025 PIPE Financing*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On May 12, 2025, we entered into a Securities Purchase Agreement ("Securities Purchase Agreement") for a private placement with three institutional investors ("May 2025 PIPE Financing"). Pursuant to the Securities Purchase Agreement, we sold an aggregate of (i) 1,500 PIPE Units and (ii) 1,500 additional shares of a new series of preferred stock, designated Series B Convertible Preferred Stock, par value $0.0001 per share. Each PIPE Unit consists of: (i) one share of Series B Convertible Preferred Stock and (ii) Series L common stock purchase warrants ("Series L Warrants") to purchase approximately 2,858 shares of common stock at an exercise price of $0.50 per share. As consideration for the PIPE Units and Series B Convertible Preferred Stock, we collected gross proceeds of $1.5 million in cash and QHSLab Notes previously held by one of the investors, and valued at $864 thousand as of May 12, 2025, before deducting placement agent fees and offering expenses of $0.4 million (collectively, the "Placement Agent Fees").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Series L Warrants are currently exercisable and expire on January 25, 2031. Each Series L Warrant is exercisable into one share of common stock and may be cashless exercised under certain circumstances. The exercise price of the Series L Warrants is subject to appropriate adjustment in the event of recapitalization events, stock dividends, stock splits, stock combinations, reclassifications, reorganizations or similar events affecting common stock. The Series L Warrants are callable for $0.01 per share, if the volume-weighted average price of the Company's common stock for 20 consecutive trading days exceeds $1.50 per share and the Series L Warrants have not been exercised. Stockholder approval of the exercise of the Series L Warrants was obtained on July 25, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In connection with the May 2025 PIPE Financing, we also issued Placement Agent Warrants to purchase an aggregate of 257,143 shares of common stock at an exercise price of $0.5425 per share to the Placement Agent. The Placement Agent Warrants terminate 5 years from the date of issuance. The Placement Agent Warrants are not callable. Except for the exercise price, contract term, call option and change in control provision, the Placement Agent Warrants have the same terms and conditions as the Series L Warrants.

We assessed the Series L Warrants and Placement Agent Warrants issued in connection with the May 2025 PIPE Financing and determined that they do not require liability classification pursuant to ASC 480. Furthermore, the Series L Warrants and Placement Agent Warrants do not have any net cash settlement provisions that would preclude equity classification under ASC 815-40. Accordingly, the Series L Warrants and Placement Agent Warrants were recorded to additional paid-in capital in the condensed consolidated balance sheets.

See Note 11, Equity Offerings in the condensed consolidated financial statements included elsewhere in this Quarterly Report for additional information on the provisions for the Series L and Placement Agent Warrants. See Note 12, Preferred Stock in the condensed consolidated financial statements included elsewhere in this Quarterly Report for additional information on the Series B Convertible Preferred Stock issued in connection with the May 2025 PIPE Financing.

In addition, we entered into a registration rights agreement with the investors requiring the registration for resale the shares of common stock issuable upon the conversion of the Series B Convertible Preferred Stock and Series L Warrants. The registration statement became effective on May 30, 2025. Subject to specified exceptions, failure to maintain the registration shall lead to an obligation to pay to the investors cash liquidated damages equal to 2% of each investor's subscription amount for then outstanding securities for every 30-day period the lapse continues, with unpaid amounts accruing interest at 18% per annum after a specified grace period.

During the three and six months ended June 30, 2025, we issued 2,202,357 shares of common stock in connection with the conversion of 771 shares of its Series B Convertible Preferred Stock.

*At the Market Offering Agreement*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On May 19, 2025, we entered into an At Market Offering Agreement (the "ATM Agreement") with Ladenburg. Based on the most recent prospectus supplement filed by the Company, under the ATM Agreement, we may currently offer and sell up to an aggregate of approximately $3.2 million of shares of common stock, par value $0.0001 per share, through Ladenburg. The ATM shares are issued pursuant to previously filed and effective Registration Statement on Form S-3 (File No. 333-284217), which was initially filed with the Securities and Exchange Commission on January 10, 2025 and declared effective on January 22, 2025. We have currently sold $2.73 million of shares pursuant to the ATM Agreement.

We have no obligation to sell, and Ladenburg is not obligated to buy or sell, any of the Shares under the ATM Agreement and may at any time suspend offers under the ATM Agreement. The ATM Agreement will terminate upon the earlier of (i) the issuance and sale of all of the shares through Ladenburg on the terms and subject to the conditions set forth in the ATM Agreement or (ii) termination of the ATM Agreement as otherwise permitted thereby. The ATM Agreement may be terminated at any time by either party upon five (5) business days' prior notice, or by Ladenburg at any time in certain circumstances, including the occurrence of a material adverse effect on the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has agreed to pay Ladenburg a commission equal to 3.0% of the aggregate gross proceeds from sale of its shares of common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of June 30, 2025, 4,183,589 shares of common stock had been sold under the ATM agreement for gross proceeds of $1.7 million before deduction of commission and offering expenses of $0.2 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *KardioNav*

On June 20, 2025, the Company formed KardioNav to pursue the advancement, development, and commercialization of certain intellectual property assigned to KardioNav. The Company transferred certain intellectual property related to the VIVO System to KardioNav, which is not currently being developed by the Company, while Chelak, an unrelated third party, transferred certain patents related to a medical device designed to interface with implanted cardiac devices to KardioNav. KardioNav intends to integrate the VIVO mapping intellectual property with Chelak's assigned patents to develop a system that interfaces with implanted cardiac devices to enable improved pre-ablation mapping and more precise localization of arrhythmogenic tissue. Research and development activities are in the planning phase for this medical device. The Company owns 57% of the subsidiary's issued and outstanding common stock, while Chelak owns 33% of the subsidiary's issued and outstanding common stock. The Company's Chief Executive Officer and Chairman of the Board of Directors and certain of his affiliates own the remaining 10% of the subsidiary's issued and outstanding common stock. See Note 2, Summary of Significant Accounting Policies in the condensed consolidated financial statements included elsewhere in this Quarterly Report for additional information.

***Components of our Results of Operations for the Three and Six Months Ended June 30, 2025*** ***and 2024***

*Revenues*

Our current activities primarily relate to the design, manufacture and sale of new and innovative medical technologies in the field of cardiac electrophysiology.

Our two primary products are (i) the VIVO System and (ii) the LockeT device.

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The VIVO System provides 3D cardiac mapping to aid with localizing the sites of origin of idiopathic ventricular arrhythmias in patients with structurally normal hearts prior to electrophysiology studies. Customers also have the option to purchase software upgrades in advance at contract inception. We invoice the customer for VIVO System and related software upgrade services after physical possession and control of VIVO System has been transferred. Subsequent renewals for software upgrade services are invoiced at inception of the renewed term. The timing of payment for the corresponding invoices depends on the credit terms identified in each contract. We recognize revenues for VIVO System at the point in time that the product is delivered to the customer. We recognize revenues for software upgrade services evenly over time over the term of the contract. We did not recognize any revenues for software upgrade services for the three and six months ended June 30, 2025 and 2024.

LockeT is a suture retention device indicated for wound healing by distributing suture tension over a larger area in the patient in conjunction with a figure of eight suture closure. We recognize sales of LockeT at the point in time that the product is delivered to the customer.

We are a business that has operations within multiple countries. During the three and six months ended June 30, 2025, approximately 18% and 13%, respectively, of our sales were derived from customers outside of the United States. During the three and six months ended June 30, 2024, approximately 35% and 62%, respectively, of our sales were derived from customers outside the United States.

*Cost of revenues*

Cost of revenues for product sales consists primarily of component costs, labor costs, and manufacturing overhead incurred to produce our products and support production.

*Selling, general and administrative expenses*

Selling, general and administrative ("SG&A") expenses consist of employee-related costs, including salaries, benefits and stock-based compensation expenses. Other SG&A expenses include amortization of intangible assets, depreciation of fixed assets, professional services fees, including legal, audit and tax fees, insurance fees, general corporate expenses and facility-related expenses.

*Research and development expenses*

Research and development ("R&D") expenses are expensed as incurred and include research grants paid to other parties, product development, costs of clinical studies to support new products and product enhancements, including expanded indications, supplies used for internal R&D and clinical activities, and costs for outside consultants who assist with technology development and clinical affairs.

*Acquired in-process research and development expenses*

Assets that are acquired in an asset acquisition for use in research and development activities that have an alternative future use are capitalized as IPR&D. Acquired IPR&D that has no alternative future use as of the acquisition date is recognized as research and development expense as of the acquisition date.

***Results of Operations for the Three and Six Months Ended June 30, 2025*** ***and 2024***

The following table sets forth the results of the Company's operations for the periods presented (in thousands):

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|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** |  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |  |
|  | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
| Revenue | $212 | $93 | $119 | $355 | $175 | $180 |
| Cost of revenues | 14 | 16 | (2) | 25 | 21 | 4 |
| Selling, general and administrative expenses | 2881 | 2713 | 168 | 6366 | 5369 | 997 |
| Research and development expenses | 155 | 81 | 74 | 258 | 118 | 140 |
| Acquired in-process research and development | 1848 |  | 1848 | 1967 |  | 1967 |
| Change in fair value of royalties payable due to related parties | (1667) | (1504) | (163) | (2830) | (1590) | (1240) |
| Other (expense) income, net (1) | (55) | 1 | (56) | (86) | 28 | (114) |
| Income tax benefit | (950) |  | (950) | (1674) |  | (1674) |

---

(1) Constitutes the operating activities within other income (expense), net in the consolidated statements of operations, except for the change in fair value of royalties payable due to related parties that is presented separately in the table above.

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*Revenues*

The increase in revenues of approximately $119 thousand for the three months ended June 30, 2025 as compared to the corresponding period in the prior year was due to an increase of $102 thousand and $17 thousand in LockeT and VIVO System sales, respectively. The increase in revenues of approximately $180 thousand for the six months ended June 30, 2025 as compared to the corresponding period in the prior year was due to an increase of $230 thousand in LockeT sales, partially offset by a $50 thousand decrease in VIVO System sales. The decrease in VIVO System sales was primarily driven by an overall reduction in VIVO patch sales in the European Union ("EU"), which accounted for the majority of product sales in 2024. This decline was primarily attributable to reduced sales efforts resulting from changes in commercial leadership and the prolonged medical leave of a key EU-based sales consultant throughout 2024 and during the six months ended June 30, 2025.

*Cost of revenues*

The decrease in cost of revenues of approximately $2 thousand for the three months ended June 30, 2025, as compared to the corresponding period in the prior year was primarily due to higher volume-based, supplier discounts for LockeT. We submitted larger consolidated purchase orders, received larger volume-based discounts, and achieved a higher product margin for LockeT devices for the three months ended June 30, 2025 as compared to the corresponding period in the prior year. The increase in cost of revenues of $4 thousand for the six months ended June 30, 2025, as compared to the corresponding period in the prior year was primarily due to an increase in sales, partially offset for higher product margins for LockeT devices.

*Selling, general and administrative expenses*

The increase in selling, general and administrative expenses of approximately $0.2 million for the three months ended June 30, 2025 as compared to the corresponding period in the prior year was primarily due to an increase in salaries and benefits of $0.2 million The increase in selling, general and administrative expenses of approximately $1.0 million for the six months ended June 30, 2025 as compared to the corresponding period in the prior year was primarily due to an increase in salaries and benefits of $0.9 million and an increase in stock-based compensation expense of $0.2 million, partially offset by a decrease in consulting fees of $0.1 million. The increase in salaries and benefits for the three and six months ended June 30, 2025 as compared to the corresponding periods in the prior year was primarily due to an increase in headcount from 15 employees as of June 30, 2024 to 21 employees as of June 30, 2025, including the CFO position that had been vacant since January 2024, and was filled in January 2025. Additionally, 3 employees that departed in the first quarter of 2024 were subsequently replaced with new hires with higher annual salaries. The increase in stock-based compensation expense for the three and six months ended June 30, 2025 was primarily due to the grant of 2,127,500 plan options and 500,000 non-plan options to certain employees during the six months ended June 30, 2025, as compared to 56,000 plan options and 25,000 non-plan options granted to certain employees during the six months ended June 30, 2024.

*Research and development expenses*

The increase in research and development expenses of approximately $0.1 million for both the three and six months ended June 30, 2025 as compared to the corresponding periods in the prior year was primarily due to hiring a full-time employee in January 2025 who is tasked with research and development activities and therefore contributed to an increase in salaries and benefits under research and development expenses of $0.1 million.

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*Acquired in-process research and development*

The increase in acquired in-process research development of approximately $1.8 million and $2.0 million for the three and six months ended June 30, 2025 as compared the corresponding periods in the prior year primarily relates to the two asset acquisitions completed in 2025. On January 24, 2025, we acquired 100% of the membership interests of Perikard, LLC, which was accounted for as an asset acquisition consisting primarily of a single patent for pericardial access technology. The patent was determined to be IPR&D with no alternative future use, and accordingly, we recognized $119 thousand, consisting of $113 thousand of stock consideration and $6 thousand of direct transaction costs, as acquired in-process research and development in the condensed consolidated statements of operations for the three months ended March 31, 2025. On May 5, 2025, we acquired certain assets primarily related to Cardionomic's CPNS System, which were deemed to be IPR&D assets with no alternative future use. Accordingly, we recognized $1.9 million, consisting of $0.3 million in stock consideration, $1.3 million in note payable, and $0.3 million in direct transaction costs, as acquired in-process research and development in the condensed consolidated statements of operations for the three and six months ended June 30, 2025.

*Change in fair value of royalties payable due to related parties*

At each reporting period, the fair value of the royalties payable due to related parties is calculated using the discounted cash flow method. The increase of $0.2 million and $1.2 million in the change in fair value of royalties payable due to related parties for the three and six months ended June 30, 2025, respectively, as compared to the corresponding periods in the prior year, is primarily due to additional future estimated royalty payments of $0.9 million related to sales of the LockeT device. Since the United States Patent and Trademark Office approved a US patent for the LockeT device in April 2025, in line with the Royalty Agreement, the Company is obligated to pay an additional royalty equal to 2% of net sales of LockeT devices. This increase is partially offset by a decrease in the discount rate used in the discounted cash flow method, which decreased by 5.5% from 26.0% at June 30, 2024 to 20.5% at June 30, 2025.

*Other income (expense), net*

The decrease in other income (expense), net of $56 thousand for the three months ended June 30, 2025, as compared to the corresponding period in the prior year primarily relates to an increase in interest expense of $62 thousand partially offset by the change in fair value of trading debt securities of $10 thousand. During the three months ended June 30, 2025, we incurred interest expense of $19 thousand in connection with the note payable issued by Cardionomix on May 5, 2025, and $45 thousand in connection with the Related Party Notes issued by us throughout June and July 2024. During the three months ended June 30, 2024, we only incurred $4 thousand in interest expense in connection with the Related Party Notes. The change in fair value of trading debt securities relates to the QHSLab Notes, which were received as consideration for the Series B Convertible Preferred Stock and Series L Warrants issued on May 12, 2025.

The decrease in other income (expense), net of $114 thousand for the six months ended June 30, 2025, as compared to the corresponding period in the prior year primarily relates to an increase in interest expense of $108 thousand and a decrease in interest income of $19 thousand, partially offset by an increase of $10 thousand in change in fair value of trading debt securities. The increase in interest expense primarily relates to the note payable issued by Cardionomix and the Related Party Notes, which incurred $19 thousand and $90 thousand in interest expense during the six months ended June 30, 2025 as compared to $0 and $4 thousand in the corresponding period in the prior year. The decrease in interest income primarily relates to lower gains in marketable securities recorded under cash and cash equivalents in the condensed consolidated balance sheets. As noted above, the change in fair value of trading debt securities relates to financial instruments acquired during the six months ended June 30, 2025, which did not exist in the corresponding period in the prior year.

*Income tax benefit*

The increase in income tax benefit of approximately $1.0 million and $1.7 million for the three and six months ended June 30, 2025 as compared to the corresponding periods in the prior year relates to an increase in net operating losses that are not subject to limitations under Section 382 of the Internal Revenue Code.

***Liquidity and capital resources***

As of June 30, 2025, we had cash and cash equivalents of $0.8 million and an accumulated deficit of $301.5 million. For the six months ended June 30, 2025, net cash used by operating activities was $4.6 million. We have incurred recurring net losses from operations and negative cash flows from operating activities since inception.

On May 12, 2025, we raised gross proceeds of $1.5 million in cash and acquired $0.9 million in trading debt securities, before deducting placement agent fees and offering expenses of $0.4 million, in connection with the May 2025 PIPE Financing. Through June 30, 2025, we raised gross proceeds of $1.7 million, before deduction of commissions and offering expenses of $0.2 million, in connection with the ATM. See Note 11, Equity Offerings in the condensed consolidated financial statements included elsewhere in this Quarterly Report for additional information on the financing events.

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We expect operating losses and negative cash flows to continue for the foreseeable future until our sales and gross profit increase sufficiently to cover our operating expenses. We expect our current operating expenses to remain relatively fixed. We believe that our current cash on hand of $978 thousand as of August 5, 2025 will not be sufficient to fund our current operations, including without limitation, to repay our outstanding short-term notes that will become due and payable on January 31, 2026. Because expected revenues are not adequate to fund our anticipated operating costs and liabilities beyond such point, we expect the need for additional financing sometime prior to the end of the current quarter. We are currently evaluating potential means of raising cash, including the continuation of our at the market offering registered with the Securities and Exchange Commission, as well as through future debt and equity financing transactions to fund our operations and pay our debts as they come due. If we are unable to do so, we will be required to reduce our spending rate to align with expected revenue levels and cash reserves, although there can be no guarantee that we will be successful in doing so. If we are unable to do so, we will be required to suspend a portion or all of our operations and/or potentially seek relief from our creditors. We may not be able to secure financing in a timely manner or on favorable terms, if at all. On August 7, 2025, we filed a prospectus supplement that will allow us to sell up to $1.5 million additional shares in our ATM offering; however, there is no guarantee that market conditions will allow us to sell enough common stock to raise this amount at prices that we consider adequate.

As a result of these factors, management has concluded that there is substantial doubt about the Company's ability to continue as a going concern for a period of one year after the date the condensed consolidated financial statements for the quarter ended June 30, 2025 are issued. The Company's condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

***Cash Flows for the Six Months Ended June 30, 2025*** ***and 2024*** ***(in thousands)***

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| Net cash provided by (used in): |  |  |
| Operating activities | $(4601) | $(3639) |
| Investing activities | (23) | (67) |
| Financing activities | 2589 | 157 |
| Net change in cash and cash equivalents | $(2035) | $(3549) |

---

*Net cash used in operating activities*

During the six months ended June 30, 2025, net cash used in operating activities of $4.6 million primarily related to the net loss of $9.5 million. This was partially offset by non-cash adjustments related to change in fair value of royalties payable due to related parties of $2.8 million, acquired in-process research and development of $2.0 million, and depreciation and amortization of $1.1 million.

During the six months ended June 30, 2024, net cash used in operating activities of $3.6 million related to the net loss of $6.9 million, partially offset by an increase in operating assets and liabilities of $0.6 million and non-cash adjustments primarily consisting of change in fair value of royalties due to related parties of $1.6 million and depreciation and amortization of $1.0 million.

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*Net cash used in investing activities*

During the six months ended June 30, 2025, net cash used in investing activities of $23 thousand consisted of purchases of property and equipment of $17 thousand, and purchases of acquired in-process research and development of $6 thousand.

During the six months ended June 30, 2024, net cash used in investing activities of $67 thousand consisted of purchases of property and equipment.

*Net cash provided by financing activities*

During the six months ended June 30, 2025, net cash used in financing activities of $2.6 million consisted of net proceeds from issuance of common stock and other equity-classified instruments, partially offset by $0.1 million in payments on notes payable.

During the six months ended June 30, 2024, net cash used in financing activities of $0.2 million primarily consisted of proceeds from notes payable due to related parties of $0.7 million, partially offset by payments on deferred financing costs of $0.3 million and payments on notes payable of $0.2 million.

***Off-balance sheet arrangements***

We have not engaged in transactions that generate relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, as a part of our ongoing business. Accordingly, we did not have any off-balance sheet arrangements during any of the periods presented.

**The Company**'**s Critical Accounting Estimates**

The information set forth below relates to the Company's critical accounting policies and estimates. The discussion and analysis of our financial position and results of operations is based on our condensed consolidated financial statements included elsewhere in this Quarterly Report, which have been prepared in accordance with U.S. GAAP.

The preparation of these consolidated financial statements requires us to make estimates and assumptions for the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We regularly evaluate estimates and assumptions related to asset acquisitions, including the provisions for legal contingencies, income taxes, deferred income tax asset valuation allowances, royalties payable due to related parties, trading debt securities, share based compensation, evaluation of impairment of long-lived assets, valuation of long-lived assets and their associated estimated useful lives, and revenues. Our estimates are based on current facts, historical experience and various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions and any such differences may be material.

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We believe the following discussion addresses our most critical accounting policies, which are those that are most important to our financial condition and results of operations and require our most difficult, subjective and complex judgments.

*Accounting for long-lived assets - estimated useful lives*

Intangible assets acquired from business combinations are initially measured at their estimated fair values and are then amortized on a straight-line basis over their estimated useful lives. Management evaluates whether events or circumstances have occurred that indicate the remaining useful life or carrying value of the amortizing intangible assets should be revised and adjusted, if necessary.

*Accounting for impairment of long-lived assets* 

The Company periodically reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that such assets might be impaired and the carrying value of the long-lived assets may not be recoverable. If events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the expected undiscounted future cash flows attributable to the asset are less than the carrying amount of the asset, an impairment loss equal to the excess of the assets carrying value over its fair value is recorded in the Company's consolidated statements of operations at that date.

*Trading Debt Securities*

The Company holds Level 3 trading debt securities that are measured at fair value with changes in fair value recognized in earnings. Because there is no observable market for these notes and their fair value depends on multiple, significant unobservable inputs, determining fair value requires significant judgment and could materially affect the Company's results of operations. The fair value of the trading debt securities is determined using a probability weighted expected return model ("PWER model") that values the trading debt securities based on the discounted cash flows of two potential settlement outcomes: (i) the trading debt securities will be converted into and settled in shares of common stock of QHSLab, Inc. and (ii) the trading debt securities' principal and accrued interest will be paid. Aside from the probability of the two potential settlement outcomes, the fair value measurement incorporates several significant unobservable inputs, including the recovery rate, simulated conversion price, credit-risk adjusted discount rate, expected equity volatility, and expected term.

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*Royalties payable*

The Company is obligated to pay royalties related to the sales of LockeT and AMIGO System under various royalty agreements executed by Old Catheter. The Company recognizes a liability for royalty fees incurred and payable based on actual sales of products under current portion of royalties payable due to related parties in the condensed consolidated balance sheets. The Company recognizes a liability for future, estimated royalty payments at fair value under current portion of royalties payable due to related parties and royalties payable due to related parties in the condensed consolidated balance sheets. The royalties payable due to related parties is remeasured at each reporting period.

The fair value measurement of royalties payable due to related parties includes significant unobservable inputs that are not supported by any market data. Royalties payable due to related parties equals the present value of estimated future royalty payments. The Company applies an internally developed, revenue adjusted discount rate ("RADR") to discount back the forecasted royalty payments. The RADR is based on the Company's weighted average cost of capital ("WACC") adjusted for the product revenue's risk profile. The risk-free rate used to determine the cost of equity for the RADR is adjusted to be commensurate with the term of the royalty agreements. Furthermore, the Beta and Risk Premium used to determine the cost of equity are also adjusted to reflect the product revenue's volatility. All other inputs for the RADR and the Company's WACC are the same.

**New Accounting Pronouncements**

See Note 2 in the consolidated financial statements included elsewhere in this Quarterly Report for a description of new accounting pronouncements, including the expected dates of adoption and estimated effects on our results of operations, financial position, and cash flows as applicable.

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

Not applicable.

**ITEM 4. CONTROLS AND PROCEDURES**

***Evaluation of Disclosure Controls and Procedures***

Our management, with the participation of our Executive Chairman of the Board and Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act, as of June 30, 2025. Our objective in designing our disclosure controls and procedures is that they provide reasonable assurance of achieving their objectives of ensuring that information we are required to disclose in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures, and is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their desired control objectives, and management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based upon this evaluation, due to the existence of the material weaknesses found in our internal controls over financial reporting described below, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2025, our disclosure controls and procedures were not effective at the reasonable assurance level. As disclosed in our Form 10-K for the year ended December 31, 2024, for the reasons set forth therein, our Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2024, our disclosure controls and procedures were not effective at the reasonable assurance level. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected and corrected on a timely basis. In preparation of our financial statements for the period covered by this report, we identified material weaknesses in internal control over financial reporting related to our control environment that existed as of June 30, 2025, as described below. Specifically, we identified material weaknesses with respect to (1) the lack of segregation of duties, (2) the lack of designed and operating review controls with respect to oversight of the financial reporting process, and (3) review of work performed by service providers with regards to (i) management's provision of inputs for valuations to a third-party provider and (ii) the Section 382 calculation in the tax provision in that the Company's provision did not reference the correct dates when determining ownership changes resulting in material changes in the amount of expiring net operating losses available to be utilized. Notwithstanding the identified material weaknesses, management believes that the Financial Statements and related financial information included in this Quarterly Report fairly present, in all material respects, our balance sheets, statements of operations, shareholders' equity and cash flows as of and for the periods presented.

***Remediation Plan***

Management is in the process of developing a remediation plan. The material weaknesses will not be considered remediated until management designs and implements effective controls that operate for a sufficient period of time and management has concluded, through testing, that these controls are effective. The Company will monitor the effectiveness of its remediation plans and will make changes management determines to be appropriate. Anticipated remediation measures include continuing assessment of the need to expand the Company's current accounting and financial reporting teams to include individuals with requisite experience to meet the requirements associated with the increasing operations of a publicly traded company, establishment of policies and procedures to ensure full review and sign offs with respect to the inputs sent to third-party service providers as well as the reports and documentation upon the completion of their work prior to any adjustments being made to the financial statements, and establishment of policies and procedures to review the inputs to fair value and tax provision calculations as well as the outputs impacting the balance at each reporting period. In January 2025, we hired a new Chief Financial Officer and are in the process of establishing additional controls intended to eliminate the disclosed material weaknesses.

***Changes in Internal Control over Financial Reporting***

There have been no changes in the Company's internal control over financial reporting during the quarter ended June 30, 2025, which were identified in connection with management's evaluation required by paragraph (d) of Rule 13a-15 under the Securities Exchange Act of 1934, as amended, and that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

***Inherent Limitations on Effectiveness of Controls***

Management recognizes that a control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud or error, if any, have been detected. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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**PART II.** — **OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS** 

Reference is made to the information disclosed under Item 3 — "*Legal Proceedings*" in the Fiscal 2024 10-K.

**ITEM 1A. RISK FACTORS**

Investing in our common stock is highly speculative and involves risks. You should carefully consider the risk factors described in Part I, Item 1A, "Risk Factors" in our Form 10-K. There have been no material changes from the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Certain factors may have a material adverse effect on our business, financial condition, and results of operations. You should also carefully consider the risks discussed in the section titled "Forward-Looking Statements" and the matters discussed at "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in our financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q. Any of these risks could have an adverse effect on our business, financial condition, operating results, or prospects and could cause the trading price of our common stock to decline, which would cause investors to lose all or part of their investment. Our business, financial condition, operating results, or prospects could also be harmed by risks and uncertainties not currently known to us or that we currently do not believe are material.

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

Previously Reported.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

**ITEM *5.* OTHER INFORMATION**

During the *three* months ended *June 30, 2025*, no director or officer, as defined in Rule *16a*-*1*(f) under the Securities Exchange Act of *1934,* as amended, of the Company adopted or terminated a "Rule *10b5*-*1* trading arrangement" or "non-Rule *10b5*-*1* trading arrangement," as each term is defined in Item *408*(a) of Regulation S-K.

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**ITEM 6. EXHIBITS**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Exhibit** |  | **Incorporated by Reference**  | **Incorporated by Reference**  | **Incorporated by Reference**  | **Incorporated by Reference**  |
| **Number** | **Description** | **Form** | **File No.**  | **Exhibit**  | **Filing Date**  |
| [2.1\*](ex_847950.htm) | [Asset Purchase Agreement dated April 22, 2025 by and between the Company and Cardionomic (assignment for the benefit of creditors), LLC](ex_847950.htm) |  |  |  |  |
| [<u>3.1.1</u>](http://www.sec.gov/Archives/edgar/data/1716621/000119312518289731/d617129dex31.htm) | [<u>Amended and Restated Certificate of Incorporation of the Registrant.</u>](http://www.sec.gov/Archives/edgar/data/1716621/000119312518289731/d617129dex31.htm) | 8-K | 001-38677 | 3.1 | 10/1/2018 |
| [<u>3.1.2</u>](http://www.sec.gov/Archives/edgar/data/1716621/000156459020054367/rmed-ex31_9.htm) | [<u>Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Registrant.</u> <u>(effective 11/16/20)</u>](http://www.sec.gov/Archives/edgar/data/1716621/000156459020054367/rmed-ex31_9.htm) | 8-K | 001-38677 | 3.1 | 11/17/2020 |
| [<u>3.1.3</u>](http://www.sec.gov/Archives/edgar/data/1716621/000156459022032010/rmed-ex31_33.htm) | [<u>Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Registrant. (effective 09/30/22)</u>](http://www.sec.gov/Archives/edgar/data/1716621/000156459022032010/rmed-ex31_33.htm) | 8-K | 001-38677 | 3.1 | 9/20/2022 |
| [<u>3.1.</u>3A](http://www.sec.gov/ix?doc=/Archives/edgar/data/0001716621/000165495423010169/rmed_8k.htm) | [<u>Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Registrant.</u> <u>(filed 08/01/23, effective 08/17/23)</u>](http://www.sec.gov/Archives/edgar/data/1716621/000165495423010169/rmed_ex31.htm) | 8-K | 001-38677 | 3.1 | 8/4/2023 |
| [<u>3.1.</u>3B](http://www.sec.gov/ix?doc=/Archives/edgar/data/0001716621/000165495424008907/rmed_8k.htm) | [<u>Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Registrant (filed 07/11/2024, effective 07/15/2024)</u>](http://www.sec.gov/Archives/edgar/data/1716621/000165495424008907/rmed_ex31.htm)<br>| 8-K | 001-38677 | 3.1 | 7/12/2024 |
| [3.1.3C](http://www.sec.gov/Archives/edgar/data/1716621/000143774925009918/ex_790652.htm) | [Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Registrant (effective 1/13/2025)](http://www.sec.gov/Archives/edgar/data/1716621/000143774925009918/ex_790652.htm) | 10-K | 001-38677 | 3.1 | 3/31/2025 |
| [3.1.4](http://www.sec.gov/ix?doc=/Archives/edgar/data/0001716621/000156459023000429/rmed-8k_20230109.htm) | [<u>Certificate of Designation of Series X Convertible Preferred Stock.</u>](http://www.sec.gov/Archives/edgar/data/1716621/000156459023000429/rmed-ex31_24.htm) | 8-K | 001-38677 | 3.1 | 1/13/2023 |
| [3.1.5](http://www.sec.gov/ix?doc=/Archives/edgar/data/0001716621/000156459023000429/rmed-8k_20230109.htm) | [<u>Certificate of Designation of Series A Preferred Stock.</u>](http://www.sec.gov/Archives/edgar/data/1716621/000156459023000429/rmed-ex32_37.htm) | 8-K | 001-38677 | 3.2 | 1/13/2023 |
| [3.1.6](http://www.sec.gov/Archives/edgar/data/1716621/000143774925016188/ex_816266.htm) | [Certificate of Designation of Series B Preferred Stock.](http://www.sec.gov/Archives/edgar/data/1716621/000143774925016188/ex_816266.htm) | 8-K | 001-38677 | 3.1 | 5/13/2025 |
| [<u>3.2.1</u>](http://www.sec.gov/Archives/edgar/data/1716621/000119312518289731/d617129dex32.htm) | [<u>Amended and Restated Bylaws of the Registrant.</u>](http://www.sec.gov/Archives/edgar/data/1716621/000119312518289731/d617129dex32.htm) | 8-K | 001-38677 | 3.2 | 10/1/2018 |
| [<u>3.2.2</u>](http://www.sec.gov/Archives/edgar/data/1716621/000156459022029707/rmed-ex31_7.htm) | [<u>Amendment to Amended and Restated Bylaws of the Registrant.</u>](http://www.sec.gov/Archives/edgar/data/1716621/000156459022029707/rmed-ex31_7.htm) | 8-K | 001-38677 | 3.1 | 8/17/2022 |
| [<u>4.1</u>](http://www.sec.gov/Archives/edgar/data/1716621/000119312518218840/d562972dex41.htm) | [<u>Specimen common stock certificate of the Registrant.</u>](http://www.sec.gov/Archives/edgar/data/1716621/000119312518218840/d562972dex41.htm) | S-1 | 333-226191 | 4.1 | 7/16/2018 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45

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[**Table of Contents**](#toc)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| [<u>4.10</u>](http://www.sec.gov/Archives/edgar/data/1716621/000119312522026151/d256079dex49.htm) | [<u>Form of Series B Warrant offered in February 2022.</u>](http://www.sec.gov/Archives/edgar/data/1716621/000119312522026151/d256079dex49.htm) | S-1/A | 333-262195 | 4.9 | 2/3/2022 |
| [4.11](http://www.sec.gov/Archives/edgar/data/1716621/000156459022026217/rmed-ex41_8.htm) | [Form of Series C Warrant issued in July 2022](http://www.sec.gov/Archives/edgar/data/1716621/000156459022026217/rmed-ex41_8.htm) | 8-K | 001-38677 | 4.1 | 7/22/2022 |
| [<u>4.12</u>](http://www.sec.gov/Archives/edgar/data/1716621/000156459022004272/rmed-ex44_43.htm) | [<u>Warrant Agency Agreement, dated February 8, 2022, by and between the Registrant and American Stock & Trust Company LLC.</u>](http://www.sec.gov/Archives/edgar/data/1716621/000156459022004272/rmed-ex44_43.htm) | 8-K | 001-38677 | 4.4 | 2/9/2022 |
| [<u>4.12.1</u>](http://www.sec.gov/Archives/edgar/data/1716621/000156459022029521/rmed-ex47_244.htm) | [<u>Amendment No. 1, dated July 22, 2022, to February 8, 2022 Warrant Agency Agreement by and between the Company and American Stock Transfer & Trust Company, LLC.</u>](http://www.sec.gov/Archives/edgar/data/1716621/000156459022029521/rmed-ex47_244.htm) | 10-Q | 001-38677 | 4.7 | 8/15/2022 |
| [<u>4.17</u>](http://www.sec.gov/Archives/edgar/data/1716621/000165495424011589/rmed_ex42.htm) | [<u>Form of Series I common stock Warrant issued September 2024</u>](http://www.sec.gov/Archives/edgar/data/1716621/000165495424011589/rmed_ex42.htm) | 8-K | 001-38677 | 4.2 | 9/6/2024 |
| [<u>4.18</u>](http://www.sec.gov/Archives/edgar/data/1716621/000165495424011589/rmed_ex43.htm) | [<u>Form of Series J common stock Warrant issued September 2024</u>](http://www.sec.gov/Archives/edgar/data/1716621/000165495424011589/rmed_ex43.htm) | 8-K | 001-38677 | 4.3 | 9/6/2024 |
| [<u>4.20</u>](http://www.sec.gov/Archives/edgar/data/1716621/000165495424013313/rmed_ex41.htm) | [<u>Form of Series K Warrant issued October 2024</u>](http://www.sec.gov/Archives/edgar/data/1716621/000165495424013313/rmed_ex41.htm) | 8-K | 001-38677 | 4.1 | 10/25/2024 |
| [<u>4.21</u>](http://www.sec.gov/Archives/edgar/data/1716621/000165495424013701/catheter_ex42.htm) | [<u>Form of Placement Agent Warrant offered in October 2024</u>](http://www.sec.gov/Archives/edgar/data/1716621/000165495424013701/catheter_ex42.htm) | 8-K/A | 001-38677 | 4.2 | 11/4/2024 |
| [4.22](http://www.sec.gov/Archives/edgar/data/1716621/000165495424008205/rmed_ex11.htm) | [Form of Underwriters' Warrant offered in September 2024](http://www.sec.gov/Archives/edgar/data/1716621/000165495424008205/rmed_ex11.htm) | S-1 | 333-279930 | 4.17 | 6/26/2024 |
| [4.23](http://www.sec.gov/Archives/edgar/data/1716621/000165495424011589/rmed_ex45.htm) | [Form of Warrant Agency Agreement dated as of September 3, 2024 entered into by and between the Registrant and Equiniti Trust Company, LLC](http://www.sec.gov/Archives/edgar/data/1716621/000165495424011589/rmed_ex45.htm) | 8-K | 001-38677 | 4.5 | 9/6/2024 |
| [4.24](http://www.sec.gov/Archives/edgar/data/1716621/000143774925016188/ex_816267.htm) | [Form of Series L Warrant offered in May 2025.](http://www.sec.gov/Archives/edgar/data/1716621/000143774925016188/ex_816267.htm) | 8-K | 001-38677 | 4.1 | 5/13/2025 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| [10.1\*](ex_847735.htm) | [Amendment to Investment Banking Agreement dated as of April 16, 2025 entered into by and between the Company and Ladenburg Thalmann & Co. Inc.](ex_847735.htm) |  |  |  |  |
| [10.2](http://www.sec.gov/Archives/edgar/data/1716621/000143774925017634/ex_820250.htm) | [At the Market Offering Agreement dated as of May 19, 2025 entered into by and between the Company and Ladenburg Thalmann & Co. Inc.](http://www.sec.gov/Archives/edgar/data/1716621/000143774925017634/ex_820250.htm) | 8-K | 001-38677 | 10.1 | 5/19/2025 |
| [10.3](http://www.sec.gov/Archives/edgar/data/1716621/000143774925016188/ex_816268.htm) | [Securities Purchase Agreement dated May 12, 2025](http://www.sec.gov/Archives/edgar/data/1716621/000143774925016188/ex_816268.htm) | 8-K | 001-38677 | 10.1 | 5/13/2025 |
| [10.4](http://www.sec.gov/Archives/edgar/data/1716621/000143774925016188/ex_816269.htm) | [Registration Rights Agreement dated May 12, 2025](http://www.sec.gov/Archives/edgar/data/1716621/000143774925016188/ex_816269.htm) | 8-K | 001-38677 | 10.2 | 5/13/2025 |
| [10.5](http://www.sec.gov/Archives/edgar/data/1716621/000143774925016188/ex_816270.htm) | [Assignment Agreement dated May 12, 2025](http://www.sec.gov/Archives/edgar/data/1716621/000143774925016188/ex_816270.htm) | 8-K | 001-38677 | 10.3 | 5/13/2025 |
| [10.6\*](ex_848048.htm) | [Investment Banking Agreement dated February 11, 2025 entered into by and between the Company and Ladenburg Thalmann & Co. Inc.](ex_848048.htm) |  |  |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 46

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[**Table of Contents**](#toc)

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| | |
|:---|:---|
| [<u>31.1\*</u>](ex_825516.htm) | [<u>Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](ex_825516.htm) |
| [<u>31.2\*</u>](ex_825517.htm) | [<u>Certification of Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](ex_825517.htm) |
| [<u>32.1\*@</u>](ex_825518.htm) | [<u>Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](ex_825518.htm) |
| [<u>32.2\*@</u>](ex_825519.htm) | [<u>Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](ex_825519.htm) |

---

---

| | |
|:---|:---|
| 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). |

---

---

| | |
|:---|:---|
| \* | Filed herewith. |
| @ | The information in this exhibit is furnished and deemed not filed with the Securities and Exchange Commission for purposes of section 18 of the Exchange Act of 1934, as amended (Exchange Act), and is not to be incorporated by reference into any filing of Catheter Precision, Inc. under the Securities Act of 1933, as amended (Securities Act), or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 47

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[**Table of Contents**](#toc)

**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.

---

| | | |
|:---|:---|:---|
|  | CATHETER PRECISION, INC.<br>(Registrant) | CATHETER PRECISION, INC.<br>(Registrant) |
| Date: August 11, 2025 | By: | /s/ David A. Jenkins |
|  |  | David A. Jenkins<br> Executive Chairman of the Board and<br> Chief Executive Officer<br> (Principal Executive Officer) |
| Date: August 11, 2025 | By: | /s/ Philip Anderson |
|  |  | Philip Anderson |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48

## Exhibit 2.1

**Exhibit 2.1**

**<u>CERTAIN IDENTIFIED INFORMATION HAS BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO ITEM 601(a)(6) OF REGULATION S-K BECAUSE DISCLOSURE OF SUCH INFORMATION WOULD CONSTITUTE A CLEARLY UNWARRANTED INVASION OF PERSONAL PRIVACY. THESE OMISSIONS ARE IDENTIFIED AS [\*\*\*]</u>**

**ASSET PURCHASE AGREEMENT** 

**EXHIBIT LIST** 

**[included for SEC filing purposes only]**

**EXHIBIT 1 General Assignment [omitted]**

**EXHIBIT 1.1 Known Encumbrances**

**EXHIBIT 1.2 Purchased Assets**

**EXHIBIT 2.1(b) Promissory Note**

**EXHIBIT 5.7(m) Disclosure Document [omitted]**

**EXHIBIT 9.1(c) Assignment and Bill of Sale [omitted]**

**EXHIBIT 9.1(d) IP Assignment [omitted]**

**SCHEDULE A Patents**

**SCHEDULE B Trademarks**

------

<u>ASSET PURCHASE AGREEMENT</u>

This Asset Purchase Agreement (the "***Agreement***") is hereby entered into on April 22, 2025 (the "***Effective Date***"), by and between Cardionomic (assignment for the benefit of creditors), LLC, a California limited liability company (the "***Seller***"), in its sole and limited capacity as assignee for the benefit of creditors of Cardionomic, Inc., a Delaware corporation (the "***Assignor***"), with its principal office located at 3945 Freedom Circle, Suite 560, Santa Clara, California 95054, United States, and Cardionomix, Inc., a Nevada corporation (the "***Buyer***"), with its principal office located at 1670 Highway 160 West, Suite 205, Fort Mill, SC 29708.

<u>RECITALS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. By resolution of the board of directors (the "***Board***") of Assignor, as memorialized in Assignor's duly executed board resolution, Assignor has transferred ownership of all of its right, title and interest in and to all of its tangible and intangible assets (the "***Assets***") to Seller, and, in so doing, has also designated Seller to act, pursuant to California law, as the assignee for the benefit of creditors of Assignor. The General Assignment agreement (the "***General Assignment***") between Assignor and Seller, as assignee, is attached hereto as <u>Exhibit 1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Seller and Buyer have identified a subset of the Assets that Buyer desires to purchase from Seller (the "***Purchased Assets***"). The Purchased Assets are defined in Section 1.2 below. After consummation of the Closing contemplated under this Agreement, Seller intends to sell or otherwise liquidate any and all remaining non-cash Assets that are not Purchased Assets and will undertake the winding down of Assignor's assignment estate, which shall ultimately include, but shall not be limited to, the distribution to Assignor's creditors of the assignment estate's net funds remaining after payment of all fees and costs associated with the liquidation of the assignment estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, the Purchased Assets, on the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the above recitals and the mutual covenants hereinafter set forth, Buyer and Seller hereby agree as follows:

**1. <u>PURCHASE AND SALE OF THE PURCHASED ASSETS</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1 <u>Agreement to Sell and Purchase the Purchased Assets</u>.** Subject to the terms and conditions of this Agreement, and in reliance on the representations, warranties and covenants set forth in this Agreement, Seller hereby agrees to sell, assign, transfer and convey to Buyer at the Closing (as defined in Section 2.2 below), and Buyer hereby agrees to purchase and acquire from Seller at the Closing, all of Seller's right, title and interest in and to all of the Purchased Assets. The Purchased Assets will be sold, assigned, transferred and conveyed to Buyer (subject to Section 1.3) on the Closing Date on a "AS IS" and "WHERE IS" basis, with no representations or warranties other than those specifically set forth below, free and clear of any known encumbrances listed on <u>Exhibit 1.1</u> hereto (collectively, "***Known Encumbrances***").

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2 <u>Purchased Assets Defined</u>.** As used in this Agreement, the term "***Purchased Assets***" means, collectively, Seller's right, title and interest in and to the assets listed in <u>Exhibit 1.2</u> attached hereto. The Purchased Assets specifically do not, under any circumstances, include any of Seller's or Assignor's (i) cash, (ii) accounts receivable, (iii) claims for preference or fraudulent conveyance recoveries under applicable law or any other litigation recoveries, (iv) state or federal tax refunds, (v) insurance refunds or recoveries, (vi) utility or leasehold security deposits, (vii) all corporate governance and human resource documents and business books and records (other than books and records relating to the ownership and operation of the Purchased Assets), or (viii) properties, rights, contracts, claims or other assets, other than those specifically listed or described in <u>Exhibit 1.2</u> hereto (collectively, the "***Excluded Assets***"). For the avoidance of doubt, it is the intent of the parties hereto that none of the Excluded Assets shall be transferred to Buyer. Each party shall promptly execute and deliver the other party any and all such further assignments, endorsements and other documents as such party may reasonably request for the purpose of effectuating the terms and conditions of this Section 1.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3 <u>Asset Transfer; Passage of Title; Delivery</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Title Passage</u>. Except as otherwise provided in this Section 1.3, upon the Closing, (i) title to all of the Purchased Assets shall pass to Buyer; (ii) Seller shall make available to Buyer possession of all of the Purchased Assets as provided in Section 1.3(b); and (iii) Seller shall execute assignments, conveyances and/or bills of sale reasonably requested to convey to Buyer title to all of the Purchased Assets in accordance with Section 1.1 of this Agreement, as well as such other instruments of conveyance as Buyer may reasonably deem necessary to effect or evidence the transfers contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Delivery of Purchased Assets</u>. On the Closing Date (as defined in Section 2.2), Seller shall make available to Buyer possession of the Purchased Assets, provided, however, that the expenses of retrieving, removing and transferring the Purchased Assets shall be borne exclusively by Buyer, and provided further that in the event that any of the Purchased Assets are located outside of the physical control of Seller, such as in warehouses or foreign locations controlled by third parties, Seller is not making any representation or warranty to Buyer as to the quantities of Purchased Assets under the control of such third parties or the accessibility of such Purchased Assets; provided, however, that nothing herein shall limit Seller's obligation to attempt to take such actions as are reasonably requested by Buyer or necessary to help facilitate Buyer's access to such Purchased Assets on the Closing Date, with Buyer having the obligation to pay Seller for any additional expenses incurred by Seller on account of Seller taking such additional actions.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Retention of Documents</u>. As assignee, Seller is responsible for maintaining business records during the assignment process and, among other things, will prepare and file final tax returns. To the extent Buyer requires business records of Assignor that Seller has retained to administer the assignment estate, Buyer shall, at its own expense, arrange to obtain copies of such records from Seller and Seller shall reasonably cooperate with Buyer regarding the foregoing.

**2. <u>CONSIDERATION; CLOSING</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 <u>Purchase Price</u>.** In consideration of the sale, transfer, conveyance and assignment of all of the Purchased Assets to Buyer at the Closing, Buyer shall take the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Issuance of Stock</u>. Subject to the terms and conditions of this Agreement, at the Closing, Buyer shall cause Catheter Precision, Inc., a Delaware corporation ("***VTAK***") to issue to Seller One Million (1,000,000) shares of common stock of VTAK (the "***VTAK Shares***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Promissory Note</u>. Simultaneously with the Closing, Buyer shall execute and deliver to Seller that certain promissory note in the form as set forth on <u>Exhibit 2.1(b)</u> attached hereto, made by or on behalf of Buyer in favor of Seller on the Closing Date in the aggregate principal amount of One Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00) (the "***Promissory Note***").

The VTAK Shares and Promissory Note, collectively, are hereinafter referred to as the "***Aggregate Consideration***."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 <u>Closing</u>.** The consummation of the purchase and sale of the Purchased Assets contemplated hereby will take place at a closing to be held at the offices of Seller (the "***Closing***"), on the date that is ten (10) days from the Effective Date (the "***Closing Date***"), or at such other time or date, and at such place, or by such other means of exchanging documents, as may be agreed to by Buyer and Seller. If the Closing does not occur on or prior to the date that is ninety (90) days from the Effective Date, or such later date upon which Buyer and Seller agree in writing, this Agreement shall terminate upon written notice of termination given by either party hereto that is not in default of its obligations hereunder, and thereupon this Agreement shall become null and void and no party hereto will have any further rights or obligations hereunder, except that Section 6.1 shall survive such termination. In no event shall the Closing take place until all closing conditions in Section 8.1 have been satisfied or waived by the Buyer and all closing conditions in Section 8.2 have been satisfied or waived by the Seller.

**3. <u>OBLIGATIONS ASSUMED</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1 <u>Liabilities and Obligations Not Assumed</u>.** Buyer shall not assume or become obligated in any way to pay or perform any liabilities, debts or obligations of Seller or of Assignor whatsoever, including, but not limited to, any liabilities or obligations now or hereafter arising from Assignor's business activities that took place prior to the Closing or any liabilities arising out of or connected to the liquidation and winding down of Assignor's business. All liabilities, debts and obligations of Seller and of Assignor are hereinafter referred to as the "***Excluded Liabilities***."

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2 <u>No Obligations to Third Parties</u>.** The execution and delivery of this Agreement shall not be deemed to confer any rights upon any person or entity other than the parties hereto, or make any person or entity a third party beneficiary of this Agreement, or to obligate either party to any person or entity other than the parties to this Agreement. The assumption by Buyer of any liabilities or obligations of Seller under Section 3.1 shall in no way expand the rights or remedies of third parties against Buyer as compared to the rights and remedies such parties would have against Seller if the Closing was not consummated.

**4. <u>REPRESENTATIONS AND WARRANTIES OF BUYER</u>.**

Buyer hereby represents and warrants to Seller that all the following statements are true, accurate and correct:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 <u>Due Organization</u>.** Buyer is a corporation duly organized, validly existing, and in good standing under the laws of Nevada. Buyer has all necessary power and authority to enter into this Agreement and to execute and deliver all other documents that Buyer is required to execute and deliver hereunder, and Buyer holds or will timely hold all permits, licenses, orders and approvals of all federal, state and local governmental or regulatory bodies necessary and required therefore.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 <u>Power and Authority; No Default</u>.** Buyer has all requisite power and authority to enter into and deliver this Agreement and to perform its obligations hereunder. The execution, delivery and performance by Buyer of this Agreement, and the consummation of all the transactions contemplated hereby, have been duly and validly authorized by Buyer. This Agreement, when signed and delivered by Buyer, will be duly and validly executed and delivered and will be the valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, subject to the laws relating to bankruptcy, insolvency and relief of debtors, and rules and laws governing specific performance, injunctions, relief and other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 <u>Authorization for this Agreement</u>.** No authorization, approval, consent of, or filing with any governmental body, department, bureau, agency, public board, authority or other third party, other than the NYSE American, is required for the consummation by Buyer of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4 <u>Litigation</u>.** To the best of Buyer's knowledge, there is no litigation, suit, action, arbitration, inquiry, investigation or proceeding pending or, to the knowledge of Buyer, threatened, before any court, agency or other governmental body against Buyer (or any corporation or entity affiliated with Buyer) which seeks to enjoin or prohibit or otherwise prevent the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5 <u>Funding</u>.** Buyer's ability to perform its financial obligations under this Agreement is not subject to any financing contingency.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7 <u>SEC Filings and Financial Statements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) VTAK has, within the past 12 months, filed or furnished all reports, schedules, forms, statements, and other documents required to be filed with or furnished to the U.S. Securities and Exchange Commission ("***SEC***") under the Securities Exchange Act of 1934, as amended (the "***Exchange Act***"), and all other applicable securities laws (collectively, the "***Buyer SEC Reports***"). Each Buyer SEC Report complied as to form and substance in all material respects with the requirements of the Exchange Act and the rules and regulations promulgated thereunder as of its respective filing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The consolidated financial statements of VTAK included in the Buyer SEC Reports filed within the last 12 months have been prepared in accordance with U.S. generally accepted accounting principles applied on a consistent basis throughout the periods covered, except as may be indicated in the notes to such financial statements to the extent such disclosure is required by GAAP, and fairly present, in all material respects, the financial position, results of operations, and cash flows of VTAK as of the respective dates thereof and for the respective periods indicated therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Since the date of VTAK's most recent audited financial statements included in the Buyer SEC Reports, there has been no event, development or occurrence, or would reasonably be expected to have, a material adverse effect on either VTAK or Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.8 <u>Compliance with Other Instruments</u>**. Neither Buyer nor VTAK is in violation or default (a) of any provisions of its Certificate of Incorporation, Bylaws or other constitutional documents; (b) in any material respect of any instrument, judgment, order, writ or decree; (c) in any material respect under any note, indenture or mortgage; (d) in any material respect under any lease, agreement, contract or purchase order to which it is a party or by which it is bound; or (e) of any provision of any federal or state statute, rule or regulation applicable to Seller or VTAK, the violation of which would have a material adverse effect. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will not result in any such violation or be in conflict with or constitute, with or without the passage of time and giving of notice, either (i) a default under any such provision, instrument, judgment, order, writ, decree, contract or agreement; or (ii) an event which results in the creation of any lien, charge or encumbrance upon any assets of either Buyer or VTAK.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9 <u>No Brokers</u>**. No broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyer or VTAK.

**5. <u>REPRESENTATIONS AND WARRANTIES OF SELLER</u>.**

Seller represents and warrants to Buyer that all of the following statements are true, accurate and correct:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 <u>Corporate Organization</u>; <u>Compliance</u>.** Seller is a limited liability company duly organized, validly existing, and in good standing under the laws of the State of California. Seller has complied with all provisions set forth in California Code of Civil Procedure §§ 493.010-493.060 and §§ 1800-1802.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 <u>Power and Authority; No Default Upon Transfer</u>.** As assignee, Seller has all requisite power and authority to enter into and deliver this Agreement and to perform its obligations hereunder and under the General Assignment. The signing, delivery and performance by Seller of this Agreement, and the consummation of all of the transactions contemplated hereby, have been duly and validly authorized by Seller. To the best of Seller's knowledge, the General Assignment was duly authorized by Assignor's Board and is a valid agreement binding on the Assignor and Seller. This Agreement, when signed and delivered by Seller, will be duly and validly executed and delivered and will be the valid and binding obligation of Seller, enforceable against Seller, as assignee, in accordance with its terms as governed by applicable law, regulations and rules. Neither the signing and delivery of this Agreement by Seller, nor the performance by Seller of its obligations under this Agreement, will (i) violate Seller's Articles of Organization or Operating Agreement, or (ii) to the best of Seller's knowledge, violate any law, statute, rule or regulation or order, judgment, injunction or decree of any court, administrative agency or government body applicable to Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3 <u>Title</u>.** To the best of Seller's knowledge after reasonable inquiry, including, without limitation, competent assessment of the applicable UCC search in Assignor's state of incorporation, Seller, as assignee, has good and marketable title to all of the Purchased Assets. Seller sells, assigns, transfers and conveys the Purchased Assets to Buyer on an "AS IS" and "WHERE IS" basis, with no representations or warranties as to merchantability, fitness or use, provided, however, the Purchased Assets shall be free and clear of the Known Encumbrances as of the Closing. To Seller's knowledge, all Known Encumbrances as to the Purchased Assets are set forth on Exhibit 1.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **IT IS UNDERSTOOD AND AGREED THAT, UNLESS EXPRESSLY STATED HEREIN, SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT TO THE PURCHASED ASSETS, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.** 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **BUYER ACKNOWLEDGES AND AGREES THAT UPON THE CLOSING SELLER SHALL SELL AND CONVEY TO BUYER AND BUYER SHALL ACCEPT THE PURCHASED ASSETS** "**<u>AS IS, WHERE IS, WITH ALL FAULTS</u>.**" **BUYER HAS NOT RELIED UPON AND WILL NOT RELY ON, AND SELLER IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESS OR IMPLIED WARRANTIES, GUARANTEES, STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PURCHASED ASSETS OR RELATING THERETO MADE OR FURNISHED BY SELLER OR ITS REPRESENTATIVES TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING, EXCEPT AS EXPRESSLY STATED HEREIN. BUYER ALSO ACKNOWLEDGES THAT THE AGGREGATE CONSIDERATION REFLECTS AND TAKES INTO ACCOUNT THAT THE PURCHASED ASSETS ARE BEING SOLD** "**<u>AS IS, WHERE IS, WITH ALL FAULTS</u>.**"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **BUYER ACKNOWLEDGES TO SELLER THAT BUYER WILL HAVE THE OPPORTUNITY TO CONDUCT PRIOR TO CLOSING SUCH INSPECTIONS AND INVESTIGATIONS OF THE PURCHASED ASSETS AS BUYER DEEMS NECESSARY OR DESIRABLE TO SATISFY ITSELF AS TO THE PURCHASED ASSETS AND ITS ACQUISITION THEREOF. BUYER FURTHER WARRANTS AND REPRESENTS TO SELLER THAT BUYER WILL RELY SOLELY ON ITS OWN REVIEW AND OTHER INSPECTIONS AND INVESTIGATIONS IN THIS TRANSACTION AND NOT UPON THE INFORMATION PROVIDED BY OR ON BEHALF OF SELLER, OR ITS AGENTS, EMPLOYEES OR REPRESENTATIVES WITH RESPECT THERETO. BUYER HEREBY ASSUMES THE RISK THAT ADVERSE MATTERS, INCLUDING, BUT NOT LIMITED TO, LATENT OR PATENT DEFECTS, ADVERSE PHYSICAL OR OTHER ADVERSE MATTERS, MAY NOT HAVE BEEN REVEALED BY BUYER**'**S REVIEW AND INSPECTIONS AND INVESTIGATIONS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **BUYER ACKNOWLEDGES THAT SOME OF THE PURCHASED ASSETS DESCRIBED IN EXHIBIT 1.2 MAY CONTAIN THIRD-PARTY INTELLECTUAL PROPERTY THAT MAY HAVE BEEN LICENSED BY ASSIGNOR OR OTHERWISE ACQUIRED BY ASSIGNOR. SELLER MAY BE UNABLE TO TRANSFER INTELLECTUAL PROPERTY BELONGING TO A THIRD-PARTY WITHOUT THE EXPRESS WRITTEN CONSENT OF THAT THIRD-PARTY, WHICH CONSENT SHALL NOT BE A CONDITION TO CLOSING UNDER THIS AGREEMENT. BUYER SHALL ACCEPT FULL RESPONSIBILITY FOR COMMUNICATING WITH ANY SUCH THIRD-PARTIES WHOSE INTELLECTUAL PROPERTY IS INCLUDED IN THE PURCHASED ASSETS TRANSFERRED HEREBY. BUYER SHALL PAY ANY LICENSING OR OTHER FEES, COSTS, EXPENSES OR CHARGES THAT MAY BE ASSOCIATED WITH USING ANY SUCH PURCHASED ASSETS**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4 <u>Litigation</u>.** To the best of Seller's knowledge, there is no claim, action, arbitration, inquiry, investigation, suit or proceeding pending or, to Seller's knowledge, threatened, against Seller or Assignor that might affect in any way any of the Purchased Assets or the transactions contemplated by this Agreement, nor is Seller aware or have grounds to know of any reasonable basis therefor. To the best of Seller's knowledge, there are no judgments, decrees, injunctions or orders of any court, governmental body, department, commission, agency, instrumentality or arbitrator against Seller or Assignor affecting the Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.5 <u>Authorization for this Agreement</u>.** To the best of Seller's knowledge, no authorization, approval, consent of, or filing with any governmental body, department, bureau, agency, public board, authority or other third party is required for the consummation by Seller of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.6 <u>Assignee</u>.** All rights of Seller with regard to the ownership and possession of the Purchased Assets are rights held as assignee pursuant to the General Assignment made by Assignor. Pursuant to the General Assignment, Assignor has informed Seller that it transferred to Seller all of Assignor's right, title and interest in and to the Purchased Assets. Pursuant to this Agreement, Seller, solely in its capacity as assignee, will at Closing sell, assign, and transfer all of its right, title and interest in and to the Purchased Assets to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.7 <u>Certain Investment Representations</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller is not required to be registered as an investment company under the Investment Company Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller recognizes that acquiring the VTAK Shares and Promissory Note (for purposes of this Section 5.7, together the "***Investment Securities***") as described above in Section 2.1 involves a high degree of risk and is suitable only for persons of adequate financial means; further, that it may not be possible to liquidate the Investment Securities in the event of emergency, that transferability is limited as described below, and that a complete loss of investment could occur. Seller understands that the value of the Investment Securities as of the Closing may be materially different from their value as of the date hereof or the date on which they may sold or transferred by the Seller. Seller has accepted these risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller is acquiring the Investment Securities for Seller's own account, for investment, and not with a view to a public "distribution" to others, as such term is defined in the Securities Act of 1933, as amended (the "***Act***") and legal interpretations thereof, and Seller will not sell, transfer, or otherwise dispose of the Investment Securities or any portion thereof unless the transaction is registered under the Act and any applicable state securities laws, or pursuant to a valid exemption therefrom, and otherwise in compliance with the provisions of this Section 5.7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Investment Securities were not offered to the Seller by means of any general solicitation or general advertising by VTAK (for purposes of this Section 5.7, the "***Issuer***") or its affiliates or any person acting on its behalf, including without limitation (i) any advertisement, article, notice, or other communication published in any newspaper, magazine, or similar media or broadcast over television or radio, or (ii) any seminar or meeting to which the Seller was invited by any general solicitation or general advertising.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Seller undertakes that it will not, without the express written consent of Issuer, in any event transfer any of the Investment Securities, including but not limited to a transfer as part of a distribution to beneficiaries, prior to the expiration of the "Absolute Holding Period" (as defined below), nor shall it voluntarily dissolve prior to such date, or take any similar action that would result in such a distribution of the Investment Securities during the Absolute Holding Period. The "***Absolute Holding Period***" shall extend, with respect to the VTAK Shares, through the date that is six months from the date of Closing and, with respect to the Promissory Note, through the date that is three years from the date of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Following the Absolute Holding Period, Seller will not, without the express written consent of Issuer, distribute the Investment Securities to any persons other than the "***Cardionomic Noteholders***," consisting solely of the following three (3) beneficiaries: Abbott Laboratories, an Illinois corporation; The Cleveland Clinic Foundation, an Ohio nonprofit corporation; and New Enterprise Associates 13, Limited Partnership, a Cayman Islands exempted limited partnership. Each of the Cardionomic Noteholders is an "institutional accredited investor" that meets the definition of "accredited investor" set forth in SEC Rule 501(a)(1), (2), (3), (7), (9), (12), or (13) under the Securities Act; (2) has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of an investment in the Investment Securities; (3) will acquire the Investment Securities only for its own account and not for the account of others; and (4) will not receive Investment Securities on behalf of any person who has consent rights over the investment or the right to opt out of it, unless such person also meets the eligibility requirements set forth in this paragraph. Further, each Cardionomic Noteholder is a validly existing legal entity that was not formed for the purpose of participating in the assignment for the benefit of creditors of which Seller is the fiduciary, is not a nominee, custodian or alter ego for any other person or persons, and does not have securityholders or stakeholders that have the right to vote on, consent to, or opt out of securities investments made by or held by such entity. Seller understands that upon distribution to the Cardionomic Noteholders by the Seller, Issuer shall require such appropriate documentation as it deems reasonably appropriate to establish the eligibility requirements set forth in this paragraph and such other factual information as may be necessary, in its reasonable determination, including but not limited to executed certifications by each entity accepting Investment Securities, to ensure compliance with federal and state securities laws and the securities laws of any other jurisdiction which may be applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Seller understands that the Investment Securities are being offered and sold in a transaction not involving any public offering within the meaning of the Securities Act and that the Investment Securities have not been registered under the Securities Act. Seller understands that the Investment Securities may not be resold, transferred, pledged or otherwise disposed of by Seller absent an effective registration statement under the Securities Act or pursuant to an applicable exemption from the registration requirements of the Securities Act and in accordance with any applicable securities laws of the states and other jurisdictions of the United States, and that any certificates or book entries representing the Investment Securities shall contain a legend to such effect. Seller understands and agrees that the Investment Securities will be subject to transfer restrictions and, as a result of these transfer restrictions, Seller may not be able to readily resell the Investment Securities and may be required to bear the financial risk of an investment in the Investment Securities for an indefinite period of time. Seller understands that any certificates or book-entry records representing the Investment Securities shall contain a restrictive legend as described in the following provisions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The VTAK Shares shall be subject to a restrictive legend in substantially the form below:

THE COMMON STOCK REPRESENTED HEREBY (THE "SHARES" OR THE "SECURITIES") HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY OTHER APPLICABLE SECURITIES LAW. OFFERS, SALES, PLEDGES AND TRANSFERS THEREOF MAY BE MADE ONLY IN COMPLIANCE WITH AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR THE SECURITIES LAWS OF ANY OTHER APPLICABLE JURISDICTION TO A PERSON THAT IS AN ELIGIBLE TRANSFEREE AS DEFINED BELOW AND TO WHOM A COPY OF THESE TRANSFER RESTRICTIONS HAS BEEN DELIVERED. AN "ELIGIBLE TRANSFEREE" MEANS (1) AN INSTITUTIONAL INVESTOR THAT IS AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF RULE 501(a)(1), (2), (3), (7), (9), (12), or (13) UNDER THE ACT (AN "IAI"), OR A QUALIFIED INSTITUTIONAL BUYER ("QIB") WITHIN THE MEANING OF RULE 144A UNDER THE ACT; (2) THAT (A) IS ACQUIRING SECURITIES FOR ITS OWN ACCOUNT OR (B) IS A BANK (AS DEFINED IN SECTION 3(a)(2) OF THE ACT), A SAVINGS AND LOAN ASSOCIATION, OR ONE OF THE OTHER FINANCIAL INSTITUTIONS LISTED IN SECTION 3(a)(5)(A) OF THE ACT, ACTING IN ITS INDIVIDUAL OR FIDUCIARY CAPACITY. THE SECURITIES ARE SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER SET FORTH IN THAT CERTAIN ASSET PURCHASE AGREEMENT BETWEEN THE ISSUER AND CARDIONOMIC (ASSIGNMENT FOR THE BENEFIT OF CREDITORS), LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, IN ITS SOLE AND LIMITED CAPACITY AS ASSIGNEE FOR THE BENEFIT OF CREDITORS OF CARDIONOMIC, INC. ("ASSIGNEE"), ENTERED INTO ON OR ABOUT APRIL 18, 2025, INCLUDING AN ABSOLUTE HOLDING PERIOD OF SIX MONTHS, AND NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, TRANSFEREES RECEIVING SHARES DIRECTLY FROM THE ASSIGNEE MUST BE IAIs. ISSUER MAY REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER AND A TRANSFEREE CERTIFICATE AND/OR SUCH OTHER DOCUMENTATION AS MAY BE REASONABLY REQUESTED BY THE ISSUER IN ORDER TO ESTABLISH THAT ACQUIRERS OF THE SECURITIES ARE ELIGIBLE TRANSFEREES AND THAT AN EXEMPTION FROM THE REGISTRATION OR QUALIFICATION REQUIREMENTS OF FEDERAL AND/OR OTHER APPLICABLE SECURITIES LAWS IS AVAILABLE. BY ITS ACCEPTANCE OF A SECURITY, THE ACQUIRER THEREOF AGREES AND REPRESENTS, AND WILL BE DEEMED TO HAVE SO AGREED AND REPRESENTED, THAT (I) IT HAS BEEN AFFORDED AN OPPORTUNITY TO INVESTIGATE MATTERS RELATING TO THE ISSUER AND THE SHARES, (II) IT IS NOT ACQUIRING SHARES WITH A VIEW TO ANY DISTRIBUTION THEREOF IN CONTRAVENTION OF FEDERAL AND OTHER APPLICABLE SECURITIES LAWS; (III) IT IS AN ELIGIBLE TRANSFEREE; AND (IV) IT RECEIVED A COPY OF, UNDERSTANDS AND ACCEPTS THE TRANSFER RESTRICTIONS DESCRIBED HEREIN, AND WILL NOT ATTEMPT TO TRANSFER THE SECURITY EXCEPT IN COMPLIANCE THEREWITH.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Promissory Note shall bear a restrictive legend in substantially the following form:

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY OTHER APPLICABLE SECURITIES LAW. NO OFFERS, SALES, PLEDGES OR TRANSFERS HEREOF, OR OF BENEFICIAL INTERESTS HEREIN, INCLUDING BY WAY OF PARTICIPATION OR BY OPERATION OF LAW, MAY BE MADE EXCEPT IN COMPLIANCE WITH AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR THE SECURITIES LAWS OF ANY OTHER APPLICABLE JURISDICTION TO A PERSON THAT IS AN ELIGIBLE TRANSFEREE AS DEFINED BELOW, AND THE OTHER TERMS AND CONDITIONS OF THE NOTE, INCLUDING THE TRANSFER RESTRICTIONS DESCRIBED BELOW. THE NOTE IS AVAILABLE ONLY IN REGISTERED, DEFINITIVE FORM, MAY BE TRANSFERRED ONLY UPON THE NOTES REGISTER MAINTAINED BY THE ISSUER, AND NO PERSON SHALL BE RECOGNIZED BY THE ISSUER AS A HOLDER WHO IS NOT IDENTIFIED AS SUCH ON THE NOTES REGISTER OF THE ISSUER. ACQUIRER OF THE NOTE IS DEEMED TO AGREE NOT TO PARTICIPATE OR ATTEMPT TO PARTICIPATE THE NOTE, OR OTHERWISE TRANSFER BENEFICIAL INTERESTS HEREIN, OR ATTEMPT TO HOLD THE NOTES AS A NOMINEE OR AGENT FOR OTHER PERSONS EXCEPT TO THE EXTENT EXPRESSLY ALLOWED BY THE TRANSFER RESTRICTIONS DESCRIBED HEREIN. AN "ELIGIBLE TRANSFEREE" MEANS (1) AN INSTITUTIONAL INVESTOR THAT IS AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF RULE 501(a)(1), (2), (3), (7), (9), (12), or (13) UNDER THE ACT (AN "IAI"), OR A QUALIFIED INSTITUTIONAL BUYER ("QIB") WITHIN THE MEANING OF RULE 144A UNDER THE ACT; (2) THAT (A) IS ACQUIRING SECURITIES FOR ITS OWN ACCOUNT OR (B) IS A BANK (AS DEFINED IN SECTION 3(a)(2) OF THE ACT), A SAVINGS AND LOAN ASSOCIATION, OR ONE OF THE OTHER FINANCIAL INSTITUTIONS LISTED IN SECTION 3(a)(5)(A) OF THE ACT, ACTING IN ITS INDIVIDUAL OR FIDUCIARY CAPACITY. THE SECURITIES ARE SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER SET FORTH IN THAT CERTAIN ASSET PURCHASE AGREEMENT BETWEEN THE ISSUER AND CARDIONOMIC (ASSIGNMENT FOR THE BENEFIT OF CREDITORS), LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, IN ITS SOLE AND LIMITED CAPACITY AS ASSIGNEE FOR THE BENEFIT OF CREDITORS OF CARDIONOMIC, INC. ("ASSIGNEE"), ENTERED INTO ON OR ABOUT APRIL 18, 2025, INCLUDING AN ABSOLUTE HOLDING PERIOD OF THREE YEARS; FURTHER, NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, TRANSFEREES RECEIVING SHARES DIRECTLY FROM THE ASSIGNEE MUST BE IAIs. ISSUER MAY REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER AND A TRANSFEREE CERTIFICATE AND/OR SUCH OTHER DOCUMENTATION AS MAY BE REASONABLY REQUESTED BY THE ISSUER IN ORDER TO ESTABLISH THAT ACQUIRERS OF THE SECURITIES ARE ELIGIBLE TRANSFEREES AND THAT AN EXEMPTION FROM THE REGISTRATION OR QUALIFICATION REQUIREMENTS OF FEDERAL AND/OR OTHER APPLICABLE SECURITIES LAWS IS AVAILABLE. BY ITS ACCEPTANCE OF A NOTE, THE ACQUIRER THEREOF AGREES AND REPRESENTS, AND WILL BE DEEMED TO HAVE SO AGREED AND REPRESENTED, THAT (I) IT HAS BEEN AFFORDED AN OPPORTUNITY TO INVESTIGATE MATTERS RELATING TO THE ISSUER AND THE NOTE, (II) IT IS NOT ACQUIRING THE NOTE WITH A VIEW TO ANY DISTRIBUTION THEREOF IN CONTRAVENTION OF FEDERAL AND OTHER APPLICABLE SECURITIES LAWS; (III) IT IS AN ELIGIBLE TRANSFEREE; AND (IV) IT ACCEPTS THE TRANSFER RESTRICTIONS DESCRIBED HEREIN AND WILL NOT ATTEMPT TO TRANSFER THE SECURITY EXCEPT IN COMPLIANCE THEREWITH.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) None of the Assignor's beneficiaries, including but not limited to the Cardionomic Noteholders, nor any partner, member or security holder of Seller, has any legal or de facto power to direct the Seller's investment decisions or the power to consent or vote on the sale of the Purchased Assets to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Seller is competent to and does understand the nature of the Investment Securities, and is able to bear the economic risk of the Investment Securities. Seller understands that there is no public market for the Promissory Note, nor will there ever be, and further that there is no guarantee and the Buyer makes no assurances that the VTAK Shares will remain listed on NYSE American or any other exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Seller is not subject to any of the "Bad Actor" disqualifications described in SEC Rule 506(d)(1)(i) to (viii) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Seller acknowledges that it received, a reasonable time prior to the date hereof, the Disclosure Document dated March 31, 2025 and attached as <u>Exhibit 5.7(m)</u> hereto, and further that it has had an opportunity to ask questions and receive answers concerning the terms and conditions of this transaction and to obtain any additional information desired to evaluate the merits and risks of investing in the Investment Securities and/or to verify the accuracy of other information furnished. All information regarding the Issuer which was requested or desired by Seller has been furnished, all other documents which could be reasonably provided have been made available for inspection and review, and Seller believes that such information is sufficient to make an informed decision with respect to acquiring the Investment Securities. Seller is not making this investment in reliance upon any advice or recommendation from the Issuer or its representatives but has consulted, to the extent desired, Seller's own legal, tax and other advisors with respect to the Investment Securities. The Seller has relied solely upon the information provided by the Issuer and independent investigations made by the Seller and/or its representatives in deciding to purchase the Investment Securities and no representations or agreements other than those set forth in the written information provided by the Issuer have been made to the Seller with respect thereto.

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**6. <u>COVENANTS OF BUYER</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1 <u>Confidential Information</u>.** Subject to Section 6.2, all copies, if any, of financial information, pricing, marketing plans, business plans, and other confidential and/or proprietary information of Assignor and/or Seller disclosed to Buyer in the course of negotiating the transactions contemplated by this Agreement, including the terms of this Agreement ("***Seller Confidential Information***"), will be held in confidence and not be used or disclosed by Buyer or any of its employees, affiliates or stockholders, except to any public or private lender, for a period of six (6) months from the Effective Date and will (at Buyer's election) be promptly destroyed by Buyer or returned to Seller, upon Seller's written request to Buyer; *<u>provided</u>, <u>however</u>,* that from and after the Closing, the foregoing covenant shall not be applicable to any Seller Confidential Information included in the Purchased Assets. It is agreed that Seller Confidential Information will *<u>not</u>* include information that: (a) is proven to have been known to Buyer prior to receipt of such information from Seller; (b) is disclosed by a third party having the legal right to disclose such information and who owes no obligation of confidence to Seller; (c) is now, or later becomes, part of the general public knowledge or literature, other than as a result of a breach of this Agreement by Buyer; or (d) is independently developed by Buyer without the use of any Seller Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2 <u>Press Releases and Public Announcements</u>.** Notwithstanding anything to the contrary in Section 6.1, Seller acknowledges that Buyer's parent company, VTAK, is subject to reporting obligations under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the rules and regulations of NYSE American. Consequently, VTAK or Buyer, as applicable may, in its sole discretion, disclose to the public such information related to this transaction, including any Seller Confidential Information, that Buyer deems necessary or appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3 <u>Taxes and any Other Charges Related to the Sale</u>.** Buyer agrees to pay all sales, transfer, use or other taxes, duties, claims or charges imposed on and/or related to the sale of the Purchased Assets under this Agreement by any tax authority or other governmental agency and to defend, indemnify and hold Seller harmless from and against any such taxes, duties, claims, or charges for payment thereof by any tax authority or other governmental agency. Notwithstanding the foregoing, Buyer shall not be responsible for any income tax payable by Seller or Assignor to any tax authority or governmental agency resulting from the sale of the Purchased Assets under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 **<u>Continued SEC Compliance</u>**. Buyer covenants and agrees, on behalf of itself and VTAK, that they shall use commercially reasonable efforts to timely file all required Buyer SEC Reports under the Exchange Act and shall comply with all applicable federal and state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 **<u>Stock Listing Maintenance</u>**. Buyer and VTAK shall use commercially reasonable efforts to maintain the listing of VTAK's shares of common stock on NYSE American or another nationally recognized securities exchange or trading market. Neither Buyer nor VTAK shall take any action that would reasonably be expected to result in the delisting of VTAK's common stock, and in the event that Buyer or VTAK receives notice from the applicable exchange or trading market regarding potential delisting, Buyer and VTAK shall use their respective best efforts to cure any deficiencies and maintain compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 **<u>Indemnification by Buyer</u>**. Buyer shall indemnify, defend, and hold harmless the Seller Indemnitees (as defined below) from and against any and all claims, losses, damages, liabilities, costs, and expenses (including reasonable attorneys' fees and costs) arising out of or relating to any action or omission by Buyer that, following the one-year anniversary of the issuance of the VTAK Shares, results in the failure of the such shares to be: (a) saleable under Rule 144 of the Securities Act; or (b) otherwise freely tradeable, subject in each case, to Seller's compliance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.7 <u>Survival of Covenants</u>.** The covenants set forth in this Section 6 shall survive the Closing. The covenants set forth in Section 6.1 and 6.2 above shall, in addition, survive the termination of this Agreement for any reason.

**7. <u>COVENANTS OF SELLER</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1 <u>Conduct of Business and Maintenance of Existence; Compliance with Laws</u>.** From and after the Closing Date and until such time as the Promissory Note has been paid and satisfied in full, Seller agrees to:

&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) preserve, renew and keep in full force and effect its existence and maintain its qualifications to do business in each jurisdiction where such qualifications are necessary for its operations;

&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) take all action it deems necessary in its reasonable business judgment to maintain all rights, privileges, licenses and franchises necessary for the normal conduct of its business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) comply with all contractual obligations and requirements under the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2 <u>Further Assurances</u>.** From and after the Closing Date, Seller shall cooperate with Buyer and promptly sign and deliver to Buyer any and such additional documents, instruments, endorsements and related information and take actions as Buyer may reasonably request for the purpose of effecting the transfer of Seller's and/or Assignor's title to the Purchased Assets to Buyer, and/or carrying out the provisions of this Agreement, provided, however, that Seller shall be reimbursed for its reasonable costs and expenses incurred in providing such documents, instruments, endorsements or related information, which additional documents, instruments, endorsements or related information shall be prepared solely by Buyer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3 <u>Press Releases and Public Announcements</u>.** Seller shall not issue any press release or make any public disclosure or announcement relating to the financial terms of this Agreement or identify Buyer without Buyer's prior written approval, which shall not be unreasonably withheld. Notwithstanding the foregoing, Seller may disclose certain information relating to this Agreement if required to do so by law or applicable governmental regulation, and Seller shall be permitted, at its discretion, to prepare and distribute a tombstone regarding the General Assignment and this Agreement without mentioning the identity of Buyer or the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4 <u>Data Room Documentation</u>.** As promptly as practicable, and in any event within ten (10) business days after the Closing, Seller shall deliver to Buyer complete and correct digital copies (recorded on a USB or similar medium) of all documents and other materials made available to Buyer for the purpose of disclosing to Buyer information, data, contracts, documents, and other materials pursuant to this Agreement related to Assignor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.5 <u>Survival of Covenants</u>.** Each of the covenants set forth in this Section 7 shall survive the Closing.

**8. <u>CONDITIONS TO CLOSING</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1 <u>Conditions to Buyer</u>**<u>'</u>**<u>s Obligations</u>.** Buyer's obligations hereunder shall be subject to the satisfaction and fulfillment of each of the following conditions, except as Buyer may expressly waive the same in writing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Accuracy of Representations and Warranties on the Closing Date</u>. The representations and warranties made herein by Seller shall be true and correct in all material respects, and not misleading in any material respect, on and as of the date given, and on and as of the Closing Date, with the same force and effect as though such representations and warranties were made on and as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Compliance</u>. As of the Closing Date, Seller shall have complied in all material respects with, and shall have fully performed, in all material respects, all conditions, covenants and obligations of this Agreement imposed on Seller and required to be performed or complied with by Seller at, or prior to, the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delivery of Purchased Assets</u>. Seller shall have made the Purchased Assets available to Buyer as set forth in Section 1.3 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delivery of Closing Documents</u>. Seller shall have delivered, and Buyer shall have received, the documents described in Section 9.2 hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Promissory Note</u>. Seller shall have delivered, and Buyer shall have received, the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Approval of NYSE American</u>. The NYSE American shall have approved the listing of the VTAK Shares upon notice of issuance. VTAK shall use reasonable efforts to obtain such approval, but the parties agree that in no instance shall it be required to call a special meeting of its stockholders to approve the issuance of the VTAK shares should the NYSE American require such approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2 <u>Conditions to Seller</u>**<u>'</u>**<u>s Obligations</u>.** The obligations of Seller hereunder shall be subject to the satisfaction and fulfillment of each of the following conditions, except as Seller may expressly waive the same in writing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Accuracy of Representations and Warranties on Closing Date</u>. The representations and warranties made herein by Buyer shall be true and correct in all material respects, and not misleading in any material respect, on and as of the date given, and on and as of the Closing Date with the same force and effect as though such representations and warranties were made on and as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Compliance</u>. Buyer shall have complied in all material respects with, and shall have fully performed, the terms, conditions, covenants and obligations of this Agreement imposed thereon to be performed or complied with by Buyer at, or prior to, the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delivery of Closing Documents</u>. Buyer shall have delivered, and Seller shall have received, the documents described in Section 9.1 hereof.

**9. <u>CLOSING OBLIGATIONS</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1 <u>Buyer</u>**<u>'</u>**<u>s Closing Obligations</u>.** At the Closing, Buyer shall deliver, or cause to be delivered, to Seller each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the VTAK Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Promissory Note, duly executed by Buyer;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the assignment and bill of sale agreement, in the form attached hereto as <u>Exhibit 9.1(c)</u> (the "***Assignment and Bill of Sale***"), duly executed by Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the intellectual property assignment agreement, in the form attached hereto as <u>Exhibit 9.1(d)</u> (the "***IP Assignment***"), duly executed by Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2 <u>Seller</u>**<u>'</u>**<u>s Closing Obligations</u>.** At the Closing, Seller shall deliver to Buyer each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Purchased Assets in accordance with Section 1.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Assignment and Bill of Sale, duly executed by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the IP Assignment, duly executed by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) confirmation that the United States Patent and Trademark Office has accepted the filing of a document, in a form reasonably acceptable to Buyer, evidencing the assignment from Assignor to Seller of the United States patents and trademarks as identified in <u>Schedule A</u> and <u>Schedule B</u> to <u>Exhibit 9.1(d)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a properly completed and duly executed IRS Form W-9 with respect to Seller; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) such other documents or instruments as Buyer reasonably requests and are reasonably necessary to consummate the transactions contemplated by this Agreement.

**10. <u>SURVIVAL OF WARRANTIES AND INDEMNIFICATION</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1 <u>Survival of Representations and Warranties</u>.** All representations and warranties made by Buyer and Seller herein, or in any certificate, schedule or exhibit delivered pursuant hereto, shall survive the Closing for a period of one (1) year after the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2 <u>Indemnified Losses</u>.** For the purpose of this Section 10 and when used elsewhere in this Agreement, "***Loss***" shall mean and include any and all liability, loss, damage, claim, expense, cost, fine, fee, penalty, obligation or injury including, without limitation, those resulting from any and all actions, suits, proceedings, demands, assessments, judgments, award or arbitration, together with reasonable costs and expenses including the reasonable attorneys' fees and other legal costs and expenses relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3 <u>Indemnification by Buyer</u>.** Subject to the provisions and limitations set forth in this Section 10, Buyer agrees to defend, indemnify and hold harmless Seller, any parent, subsidiary or affiliate of Seller, and any officers, directors, members, agents, managers, representatives, employees or attorneys of Seller or of any parent, subsidiary or affiliate of Seller (collectively, the "***Seller Indemnitees***") from and against and in respect of any Loss which arises out of or results from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any breach by Buyer of any covenant made herein, or the inaccuracy or untruth of any representation or warranty of Buyer made herein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the use of the Purchased Assets after the Closing.

*<u>provided</u>*, *<u>however</u>*, that nothing in this Section 10.3 shall impose on Buyer any duty to indemnify Seller for any Excluded Liabilities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4 <u>Period for Making Claims</u>.** A claim for indemnification by either party under this Section 10 may be brought, if at all, at any time after the Closing Date, with respect to any claim or claims for indemnification under this Section 10, provided, however, that any claim under Section 10.3(a) with respect to the inaccuracy or untruth of any representation or warranty must be brought, if at all, prior to the time such representation or warranty expires pursuant to Section 10.1.

**11. <u>MISCELLANEOUS</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1 <u>Expenses</u>.** Each of the parties hereto shall bear its own expenses (including without limitation attorneys' fees) in connection with the negotiation and consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.2 <u>Notices</u>.** Any notice required or permitted to be given under this Agreement shall be in writing and shall be personally delivered or sent by certified or registered United States mail, postage prepaid, or sent by a nationally recognized overnight express courier and addressed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>If to Seller</u>:

Cardionomic (assignment for the benefit of creditors), LLC

3945 Freedom Circle, Suite 560

Santa Clara, California 95054

United States

Telephone: **<u>[\*\*\*]</u>**

Facsimile**<u>[\*\*\*]</u>**

Email: **<u>[\*\*\*]</u>**

Attention: **<u>[\*\*\*]</u>**

<u>With copy to</u>:

Sheppard Mullin Richter & Hampton LLP

Four Embarcadero Center, 17<sup>th</sup> Floor

San Francisco, CA 94111

Telephone: 415.434.9100

Facsimile: 415.434.3947

Email: okatz@sheppardmullin.com

Attention: Ori Katz, Esq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>If to Buyer</u>:

Cardionomix, Inc.

1670 Highway 160 West, Suite 205

Fort Mill, SC 29708

E-mail: DJenkins@catheterprecision.com

Attention: David Jenkins

------

<u>With copy to</u>:

Arnall Golden Gregory LLP

171 17<sup>th</sup> Street, NW, Suite 2100

Atlanta, Georgia 30363

E-mail: brian.teras@agg.com

Attention: Brian Teras

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.3 <u>Entire Agreement</u>.** This Agreement, the Exhibits hereto (which are incorporated herein by reference) and any agreements to be executed and delivered in connection herewith, together constitute the entire agreement and understanding between the parties and there are no agreements or commitments with respect to the transactions contemplated herein except as set forth in this Agreement. This Agreement supersedes any prior offer, agreement or understanding between the parties with respect to the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.4 <u>Amendment; Waiver</u>.** Any term or provision of this Agreement may be amended only by a writing signed by both Seller and Buyer. The observance of any term or provision of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a writing signed by the party to be bound by such waiver. No waiver by a party of any breach of this Agreement will be deemed to constitute a waiver of any other breach or any succeeding breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.5 <u>No Third Party Beneficiaries</u>.** Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or to give any person, firm or corporation, other than the parties hereto, any rights or remedies under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.6 <u>Execution in Counterparts</u>.** For the convenience of the parties, this Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Facsimile or electronically transmitted signatures to this Agreement shall be as valid and binding as a signed original.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.7 <u>Benefit and Burden</u>.** This Agreement shall be binding upon, shall inure to the benefit of, and shall be enforceable by and against, the parties hereto and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.8 <u>Governing Law</u>.** This Agreement shall be governed by and construed in accordance with the internal laws of the State of California (excluding application of any choice of law doctrines that would make applicable the law of any other state or jurisdiction) and, where appropriate, applicable federal law. All claims and disputes arising under or in connection with this Agreement, whether for or in respect of, breach of contract, tort, equity, or otherwise, shall be adjudicated exclusively in federal or state courts located in Santa Clara County, California, and each party waives its right to a trial by jury of any such claims or disputes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.9 <u>Severability</u>.** If any provision of this Agreement is for any reason and to any extent deemed to be invalid or unenforceable, then such provision shall not be voided but rather shall be enforced to the maximum extent then permissible under then applicable law and so as to reasonably effect the intent of the parties hereto, and the remainder of this Agreement will remain in full force and effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.10 <u>Attorneys</u>**<u>'</u> **<u>Fees</u>.** Should a suit or arbitration be brought to enforce or interpret any provision of this Agreement, the prevailing party shall be entitled to recover from the other party the prevailing party's reasonable attorneys' fees to be fixed in amount by the Court or the Arbitrator(s) (including without limitation costs, expenses and fees on any appeal). The prevailing party will be entitled to recover its costs of suit or arbitration, as applicable, regardless of whether such suit or arbitration proceeds to a final judgment or award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.11 <u>Limitation of Liability</u>. BUYER HEREBY RECOGNIZES, ACKNOWLEDGES AND AGREES THAT UNDER NO CIRCUMSTANCE MAY BUYER OR ANY OF ITS AFFILIATES ASSERT ANY CLAIM AGAINST OR SEEK ANY RECOVERY FROM ANY OFFICERS, DIRECTORS, MEMBERS, AGENTS, MANAGERS, REPRESENTATIVES OR EMPLOYEES OF SELLER OR ANY OF THE OFFICERS, DIRECTORS, MEMBERS, AGENTS, MANAGERS, REPRESENTATIVES OR EMPLOYEES OF ANY MEMBER OR AFFILIATE OF SELLER ON ACCOUNT OF ANY ACTION OR INACTION OR FOR ANY REASON WHATSOEVER RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, AS A RESULT OF, ARISING OUT OF, OR IN ANY WAY RELATING TO ANY BREACH OF ANY REPRESENTATION, WARRANTY AGREEMENT OR COVENANT MADE BY OR TO BE PERFORMED BY SELLER UNDER THIS AGREEMENT.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.12 <u>Limitation of Remedy in Favor of Buyer</u>. BUYER HEREBY AGREES THAT ITS SOLE REMEDY RESULTING FROM ANY BREACH OF ANY REPRESENTATION(S) OR WARRANTY(IES) PROVIDED BY SELLER HEREIN IS TO ASSERT A GENERAL UNSECURED CLAIM AGAINST SELLER**'**S ASSIGNMENT ESTATE FOR DAMAGES INCURRED BY BUYER AS A RESULT OF SUCH BREACH, WITH ANY SUCH CLAIM, TO THE EXTENT AGREED TO BY SELLER OR ALLOWED BY A COURT OF LAW, TO BE TREATED IN THE SAME MANNER AS ALL OTHER GENERAL UNSECURED CLAIMS ASSERTED AGAINST SELLER**'**S ASSIGNMENT ESTATE. BUYER HEREBY FURTHER AGREES THAT UNDER NO CIRCUMSTANCE MAY ANY SUCH CLAIM(S) ASSERTED BY BUYER BE ASSERTED AFTER THE TIME PERIOD SET FORTH IN SECTION 10.1.**

[Remainder of Page Intentionally Left Blank]

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**IN WITNESS WHEREOF**, Buyer and Seller have executed and delivered this Asset Purchase Agreement by their duly authorized representatives as of the Effective Date.

---

| | |
|:---|:---|
| **SELLER:** | **BUYER:** |
| Cardionomic (assignment for the benefit of <br> creditors), LLC, solely as assignee for the<br> benefit of creditors of Cardionomic, Inc.  | Cardionomix, Inc. |
| By: /s/ Michael Maidy | By: /s/ David Jenkins |
| Its: Manager in its sole capacity as<br> assignee for the benefit of the creditors  | Its: Authorized Signatory |

---

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**<u>EXHIBIT 1</u>**

**General Assignment**

Attached.

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**<u>EXHIBIT 1.1</u>**

**Known Encumbrances**

None.

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**<u>EXHIBIT 1.2</u>**

**Purchased Assets**

The following assets acquired by the Seller from the Assignor, pursuant to the General Assignment and any other ancillary agreement related thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. All contents of the five pallets and other inventory located at 3284 Edward Ave., Unit F, Santa Clara, CA 95054;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All documentation and data consisting of approximately 80 GB of data that is stored on a device located at 3945 Freedom Circle, Suite 560, Santa Clara, CA 95054;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. All technical information, know-how and data, and confidential and proprietary information, including, without limitation, discoveries, developments, improvements, enhancements, concepts, ideas, methods, processes, designs, data, formulae, specifications, instructions, materials, expertise, trade secrets, technology, research and development information, and scientific and clinical information, which is included in the materials provided in item 2 above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. All inventions, whether or not such inventions are the subject of a patent or patent application, which is included in the materials provided in item 2 above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. All U.S. and foreign issued patents, patent applications, and statutory invention registrations, together with any divisionals, continuations, continuations-in-part, extensions, provisional and/or supplemental protection certificates, renewals, reissues, and re-examinations thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. All: (a) trade names, service names, brand names, product names, trade styles, logos, symbols, slogans, designs, common law trademarks and service marks; (b) trademark and service mark registrations and applications, renewals and extensions therefor; (c) other service source identifiers; and (d) goodwill appurtenant to any or all of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. All books and records of Seller relating to the ownership and operation of the Purchased Assets, and not including any Excluded Assets listed in Section 1.2.

------

**<u>Exhibit 2.1(b)</u>**

Attached.

------

**THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE** "**ACT"), OR ANY OTHER APPLICABLE SECURITIES LAW. NO OFFERS, SALES, PLEDGES OR TRANSFERS HEREOF, OR OF BENEFICIAL INTERESTS HEREIN, INCLUDING BY WAY OF PARTICIPATION OR BY OPERATION OF LAW, MAY BE MADE EXCEPT IN COMPLIANCE WITH AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR THE SECURITIES LAWS OF ANY OTHER APPLICABLE JURISDICTION TO A PERSON THAT IS AN ELIGIBLE TRANSFEREE AS DEFINED BELOW, AND THE OTHER TERMS AND CONDITIONS OF THE NOTE, INCLUDING THE TRANSFER RESTRICTIONS DESCRIBED BELOW. THE NOTE IS AVAILABLE ONLY IN REGISTERED, DEFINITIVE FORM, MAY BE TRANSFERRED ONLY UPON THE NOTES REGISTER MAINTAINED BY THE BORROWER, AND NO PERSON SHALL BE RECOGNIZED BY THE BORROWER AS A HOLDER WHO IS NOT IDENTIFIED AS SUCH ON THE NOTES REGISTER OF THE BORROWER. ACQUIRER OF THE NOTE IS DEEMED TO AGREE NOT TO PARTICIPATE OR ATTEMPT TO PARTICIPATE THE NOTE, OR OTHERWISE TRANSFER BENEFICIAL INTERESTS HEREIN, OR ATTEMPT TO HOLD THE NOTE AS A NOMINEE OR AGENT FOR OTHER PERSONS EXCEPT TO THE EXTENT EXPRESSLY ALLOWED BY THE TRANSFER RESTRICTIONS DESCRIBED HEREIN. AN** "**ELIGIBLE TRANSFEREE**" **MEANS (1) AN INSTITUTIONAL INVESTOR THAT IS AN** "**ACCREDITED INVESTOR**" **WITHIN THE MEANING OF RULE 501(a)(1), (2), (3), (7), (9), (12), or (13) UNDER THE ACT (AN "IAI"), OR A QUALIFIED INSTITUTIONAL BUYER ("QIB") WITHIN THE MEANING OF RULE 144A UNDER THE ACT; (2) THAT (A) IS ACQUIRING SECURITIES FOR ITS OWN ACCOUNT OR (B) IS A BANK (AS DEFINED IN SECTION 3(a)(2) OF THE ACT), A SAVINGS AND LOAN ASSOCIATION, OR ONE OF THE OTHER FINANCIAL INSTITUTIONS LISTED IN SECTION 3(a)(5)(A) OF THE ACT, ACTING IN ITS INDIVIDUAL OR FIDUCIARY CAPACITY. THE SECURITIES ARE SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER SET FORTH IN THAT CERTAIN ASSET PURCHASE AGREEMENT BETWEEN THE BORROWER AND CARDIONOMIC (ASSIGNMENT FOR THE BENEFIT OF CREDITORS), LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, IN ITS SOLE AND LIMITED CAPACITY AS ASSIGNEE FOR THE BENEFIT OF CREDITORS OF CARDIONOMIC, INC. (**"**ASSIGNEE**"**), ENTERED INTO ON OR ABOUT APRIL 18, 2025, INCLUDING AN ABSOLUTE HOLDING PERIOD OF THREE YEARS. FURTHER, NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, TRANSFEREES RECEIVING THE NOTE DIRECTLY FROM THE ASSIGNEE MUST BE IAIs. BORROWER MAY REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO THE BORROWER AND A TRANSFEREE CERTIFICATE AND/OR SUCH OTHER DOCUMENTATION AS MAY BE REASONABLY REQUESTED BY THE BORROWER IN ORDER TO ESTABLISH THAT ACQUIRERS OF THE SECURITIES ARE ELIGIBLE TRANSFEREES AND THAT AN EXEMPTION FROM THE REGISTRATION OR QUALIFICATION REQUIREMENTS OF FEDERAL AND/OR OTHER APPLICABLE SECURITIES LAWS IS AVAILABLE. BY ITS ACCEPTANCE OF A NOTE, THE ACQUIRER THEREOF AGREES AND REPRESENTS, AND WILL BE DEEMED TO HAVE SO AGREED AND REPRESENTED, THAT (I) IT HAS BEEN AFFORDED AN OPPORTUNITY TO INVESTIGATE MATTERS RELATING TO THE ISSUER AND THE NOTE, (II) IT IS NOT ACQUIRING THE NOTE WITH A VIEW TO ANY DISTRIBUTION THEREOF IN CONTRAVENTION OF FEDERAL AND OTHER APPLICABLE SECURITIES LAWS; (III) IT IS AN ELIGIBLE TRANSFEREE; AND (IV) IT ACCEPTS THE TRANSFER RESTRICTIONS DESCRIBED HEREIN AND WILL NOT ATTEMPT TO TRANSFER THE SECURITY EXCEPT IN COMPLIANCE THEREWITH.**

------

**$1,500,000.00**

Dated: April 18, 2025

**<u>PROMISSORY NOTE</u>**

**(this** "**<u>Note</u>**"**)**

FOR VALUE RECEIVED, the undersigned ("<u>Borrower</u>"), whose address is set forth below its signature, hereby promises to pay to the order of Cardionomic (assignment for the benefit of creditors), LLC ("<u>Payee</u>"), at the office of Payee at 3945 Freedom Circle, Suite 560, Santa Clara, California 95054, or at such other place or places as the holder hereof from time to time may designate in writing, the principal sum of One Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00), or such lesser sum as may be outstanding hereunder from time to time (the "<u>Loan</u>"), in lawful money of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Principal and Interest; Payments</u>**. From and after the date hereof, interest shall accrue on all principal amounts outstanding from time to time hereunder at a fixed rate equal to four percent (4%) per annum. Interest so computed shall accrue for each and every day (365 days per year) on which any indebtedness remains outstanding hereunder, including the day on which funds are initially advanced regardless of the time of day such advance is made, and including the day on which funds are repaid unless repayment is credited prior to 5:00 P.M., Atlanta, Georgia time. Said interest shall be computed hereunder with respect to each day during the term of this Note by multiplying the outstanding principal balance hereunder at the close of business on each such day by a daily interest factor, which shall be calculated by dividing the applicable rate by 360. Payment of principal and interest shall be due and payable in whole on April [▪], 2028 (the "<u>Maturity Date</u>") to be in the full amount of principal and interest then remaining unpaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Prepayment</u>**. Borrower may prepay the principal balance outstanding hereunder whole or in part at any time without penalty. Any such prepayments shall be applied first to costs and expenses set forth in <u>Section 5</u>, next to accrued but unpaid interest due and owing hereunder and thereafter to the principal balance outstanding hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Acceleration</u>**. All outstanding principal plus accrued but unpaid interest on such principal shall automatically, and without any further action by any party hereto, become immediately due and payable if: (a) Borrower shall (i) commence a voluntary case or other proceeding or file any petition seeking relief under any federal, state or foreign bankruptcy, insolvency or other similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in the foregoing paragraph (i), (iii) apply for or consent to the appointment of a custodian, trustee, receiver, liquidator or other similar official for Borrower or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing, or (b) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) relief in respect of Borrower or its debts, or any substantial part of its assets, under any federal, state or foreign bankruptcy, insolvency or other similar law now or hereafter in effect or (ii) the appointment of a custodian, trustee, receiver, liquidator or other similar official for Borrower or for a substantial part of its assets, and in any such case, such proceeding or petition shall remain undismissed for a period of sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Rights and Remedies of Payee</u>**. Payee shall be entitled to pursue any and all rights and remedies provided under the terms of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Costs and Expenses</u>**. Borrower agrees to pay all filing fees and similar charges and all costs incurred by Payee in collecting or securing or attempting to collect or secure this Note, including attorneys' fees, whether or not involving litigation and/or appellate, administrative or bankruptcy proceedings. Borrower agrees to pay on demand, any and all present or future taxes, levies, imposts, deductions, charges and withholdings imposed in connection with this Note by the laws or governmental authorities of any jurisdiction, and all payments to Payee under this Note shall be made free and clear thereof and without deduction therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Governing Law</u>**. This Note shall be governed by, and construed and enforced in accordance with, the laws of the State of Nevada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Severability</u>**. Any provision of this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction only, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Binding Effect</u>**. All of the terms of this Note shall be binding upon Borrower and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Time of the Essence</u>**. TIME IS OF THE ESSENCE OF THIS NOTE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Miscellaneous</u>**. Whenever used in this Note and unless the context otherwise requires, words in the singular include the plural, words in the plural include the singular, and pronouns of any gender include the other genders. Captions and Section headings contained in this Note are for convenience only and shall not affect its interpretation. All references in this Note to Sections refer to the respective subdivisions of this Note, unless such reference specifically identifies another document.

(Signature on following page)

------

IN WITNESS WHEREOF, Borrower has executed this Note under seal as of the day and year first written above.

---

| | |
|:---|:---|
| **BORROWER:**<br>Cardionomix, Inc. | **BORROWER:**<br>Cardionomix, Inc. |
| By:  | (SEAL) |
| Name: | David Jenkins |
| Title: | Authorized Signatory |
| Address: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1670 Highway 160 West, Suite 205<br> Fort Mill, SC 29708 |

---

------

**<u>EXHIBIT 5.7(m)</u>**

**Disclosure Document**

Attached.

------

**<u>EXHIBIT 9.1(c)</u>**

**Assignment and Bill of Sale**

------

**<u>EXHIBIT 9.1(d)</u>**

**IP Assignment**

------

**<u>SCHEDULE A</u>**

**Patents**

---

| | | | |
|:---|:---|:---|:---|
| **Country** | **Title** | **App. No.**<br> **Pub. No.**<br> **Pat. No.** | **Filing Date**<br> **Pub. Date**<br> **Issue Date** |
| US | Catheter and Catheter System for Electrical Neuromodulation | 62/001,729<br> N/A<br> N/A | 05/22/2014<br> N/A<br> N/A |
| PCT | Catheter and Catheter System for Electrical Neuromodulation | PCT/US2015/031960<br> WO 2015/179634<br> N/A | 05/21/2015<br> 11/26/2015<br> N/A |
| US | Catheter and Catheter System for Electrical Neuromodulation | 15/357,510<br> 2017/0065812<br> 10,576,273 | 11/21/2016<br> 03/09/2017<br> 03/03/2020 |
| Australia | Catheter and Catheter System For Electrical Neuromodulation | 2015264121<br> 2015264121 A1<br> 2015264121 B2 | 10/25/2016<br> 11/10/2016<br> 09/10/2020 |
| Canada | Catheter and Catheter System for Electrical Neuromodulation | 2,946,791<br> 2,946,791 A1<br> 2,946,791 | 10/24/2016<br> 11/26/2015<br> 09/19/2023 |
| China | Catheter and Catheter System for Electrical Neuromodulation | 201580031878.4<br> 106456975 A<br> 106456975 B | 12/14/2016<br> 02/22/2017<br> 09/04/2020 |
| China | Catheter and Catheter System for Electrical Neuromodulation | 202010802494.0<br> 111790047 A<br> 111790047 B | 08/12/2020<br> 10/20/2020<br> 09/27/2022 |
| Europe (EPO) | Catheter and Catheter System for Electrical Neuromodulation | 15727213.9<br> 3,145,583 A1<br> 3,145,583 B1 | 11/07/2016<br> 03/29/2017<br> 03/02/2022 |
| India | Catheter and Catheter System for Electrical Neuromodulation | 201617038928<br> Journal No. 08/2017<br> - | 11/15/2016<br> 02/24/2017<br> - |
| Japan | Catheter and Catheter System for Electrical Neuromodulation | 2016-564632<br> 2017-516523<br> 6,580,068 B2 | 10/24/2016<br> 06/22/2017<br> 09/25/2019 |
| Japan | Catheter and Catheter System for Electrical Neuromodulation | 2019-154683<br> 2019-213925<br> 6,856,721 B2 | 08/27/2019<br> 12/19/2019<br> 04/07/2021 |
| Singapore | Catheter and Catheter System for Electrical Neuromodulation | 11201608878S<br> 11201608878S A<br> 11201608878S | 10/24/2016<br> 11/29/2016<br> 10/14/2018 |
| US | Catheter and Electrode Systems for Electrical Neuromodulation | 62/047,270<br> N/A<br> N/A | 09/08/2014<br> N/A<br> N/A |
| PCT | Catheter and Electrode Systems for Electrical Neuromodulation | PCT/US2015/047770<br> WO 2016/040037<br> N/A | 08/31/2015<br> 03/17/2016<br> N/A |
| US | Catheter and Electrode Systems for Electrical Neuromodulation | 15/446,872<br> 2017/0173338<br> 10,894,160 | 03/01/2017<br> 06/22/2017<br> 01/19/2021 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **Country** | **Title** | **App. No.**<br> **Pub. No.**<br> **Pat. No.** | **Filing Date**<br> **Pub. Date**<br> **Issue Date** |
| Australia | Catheter and Electrode Systems for Electrical Neuromodulation | 2015315658<br> 2015315658 A1<br> 2015315658 B2 | 03/15/2017<br> 04/06/2017<br> 05/23/2019 |
| Europe (EPO) | Catheter and Electrode Systems for Electrical Neuromodulation | 15763718.2<br> 3,194,007 A1<br> 3,194,007 B1 | 02/17/2017<br> 07/26/2017<br> 07/04/2018 |
| US | Methods for Electrical Neuromodulation of the Heart | 62/047,313<br> N/A<br> N/A | 09/08/2014<br> N/A<br> N/A |
| PCT | Methods for Electrical Neuromodulation of the Heart | PCT/US2015/047780<br> WO 2016/040038 A1<br> N/A | 08/31/2015<br> 03/17/2016<br> N/A |
| US | Methods for Electrical Neuromodulation of the Heart | 15/446,881<br> 2017/0173339<br> 10,722,716 | 03/01/2017<br> 06/22/2017<br> 07/28/2020 |
| US | Methods for Electrical Neuromodulation of the Heart | 16/937,932<br> 2020/0360694<br> - | 07/24/2020<br> 11/19/2020<br> - |
| Australia | Methods for Electrical Neuromodulation of the Heart | 2015315570<br> 2015315570 A1<br> 2015315570 B2 | 03/13/2017<br> 04/06/2017<br> 08/27/2020 |
| Australia | Methods for Electrical Neuromodulation of the Heart | 2020217387<br> 2020217387 A1<br> 202017387 B2 | 08/12/2020<br> 09/03/2020<br> 01/19/2023 |
| Europe (EPO) | Methods for Electrical Neuromodulation of the Heart | 15763160.7<br> 3194017<br> - | 02/17/2017<br> 07/26/2017<br> - |
| US | Method for Electrical Neuromodulation | 62/099,834<br> N/A<br> N/A | 01/05/2015<br> N/A<br> N/A |
| PCT | Cardiac Modulation Facilitation Methods and Systems | PCT/US2016/012082<br> WO 2016/111940<br> N/A | 01/04/2016<br> 07/14/2016<br> N/A |
| US | Cardiac Modulation Facilitation Methods and Systems | 15/540,161<br> 2018/0050206<br> 10,493,278 | 06/27/2017<br> 02/22/2018<br> 12/03/2019 |
| US | Methods of Selecting Parameters For Therapeutic Neuromodulation | 18/503,504 | 11/07/2023 |
| Australia | Cardiac Modulation Facilitation Methods and Systems | 2018256475<br> 2018256475 A1<br> 2018256475 B2 | 10/29/2018<br> 11/22/2018<br> 05/21/2020 |
| Canada | Cardiac Modulation Facilitation Methods and Systems | 2,972,459<br> 2,972,459 A1<br> - | 06/27/2017<br> 07/14/2016<br> - |
| China | Cardiac Modulation Facilitation Methods and Systems | 201680008967.1<br> 107206241 A<br> ZL201680008967.1 | 08/04/2017<br> 09/26/2017<br> 02/15/2019 |
| China | Cardiac Modulation Facilitation Methods and Systems | 201910030397.1<br> 109568786 A<br> - | 01/14/2019<br> 04/05/2019<br> - |

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------

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| | | | |
|:---|:---|:---|:---|
| **Country** | **Title** | **App. No.**<br> **Pub. No.**<br> **Pat. No.** | **Filing Date**<br> **Pub. Date**<br> **Issue Date** |
| Europe (EPO) | Cardiac Modulation Facilitation Methods and Systems | 16735266.5<br> 3,242,717 A1<br> 3,242,717 B1 | 07/31/2017<br> 11/15/2017<br> 06/12/2019 |
| Europe (EPO) | Cardiac Modulation Facilitation Methods and Systems | 19179265.4<br> 3,610,917 A1<br> - | 06/10/2019<br> 02/19/2020<br> - |
| India | Cardiac Modulation Facilitation Methods and Systems | 201717026283 A<br> Journal No. 46/2017<br> - | 07/24/2017<br> 11/17/2017<br> - |
| Japan | Cardiac Modulation Facilitation Methods and Systems | 2017-534912<br> 2018-506328<br> 6626111 | 06/29/2017<br> 03/08/2018<br> 12/06/2019 |
| US | Cardiac Contractility Neurostimulation Systems and Methods | 62/305,988<br> N/A<br> N/A | 03/09/2016<br> N/A<br> N/A |
| US | Cardiac Contractility Neurostimulation Systems and Methods | 62/343,302<br> N/A<br> N/A | 05/31/2016<br> N/A<br> N/A |
| US | Cardiac Contractility Neurostimulation Systems and Methods | 62/464,039<br> N/A<br> N/A | 02/27/2017<br> N/A<br> N/A |
| PCT | Cardiac Contractility Neurostimulation Systems and Methods | PCT/US2017/021214<br> WO 2017/156039<br> N/A | 03/07/2017<br> 09/14/2017<br> N/A |
| US | Methods of Reducing Duty Cycle During N\*\*\*eurostimulation Treatment | 15/892,135<br> 2018/0161577<br> 10,448,884 | 02/08/2018<br> 06/14/2018<br> 10/22/2019 |
| US | Methods of Monitoring Effects of Neurostimulation | 15/892,199<br> 2018/0169414<br> 10,188,343 | 02/08/2018<br> 06/21/2018<br> 01/29/2019 |
| US | Methods of Facilitating Positioning of Electrodes | 15/893,038<br> 2018/0168503<br> 10,172,549 | 02/09/2018<br> 06/21/2018<br> 01/08/2019 |
| US | Methods of Positioning Neurostimulation Devices | 16/259,306<br> 2019/0150832<br> 10,952,665 | 01/28/2019<br> 05/23/2019<br> 03/23/2021 |
| US | Electrode Assemblies for Neurostimulation Treatment | 16/658,618<br> 2020/0214627<br> 11,229,398 | 10/21/2019<br> 07/09/2020<br> 01/25/2022 |
| US | Differential On and Off Durations for Neurostimulation Devices and Methods | 17/249,960<br> 2021/0204871<br> 11,806,159 | 03/19/2021<br> 07/08/2021<br> 11/07/2023 |
| US | Neurostimulation Devices and Methods | 18/476,935<br> -<br> - | 09/28/2023<br> -<br> - |
| Australia | Cardiac Contractility Neurostimulation Systems and Methods | 2017229496<br> 2017229496 A1<br> 2017229496 B2 | 08/23/2018<br> 09/06/2018<br> 07/14/2022 |
| Australia | Cardiac Contractility Neurostimulation Systems and Methods | 2022203304<br> 2022203304 A1<br> - | 05/17/2022<br> 06/02/2022<br> - |

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------

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| | | | |
|:---|:---|:---|:---|
| **Country** | **Title** | **App. No.**<br> **Pub. No.**<br> **Pat. No.** | **Filing Date**<br> **Pub. Date**<br> **Issue Date** |
| Canada | Cardiac Contractility Neurostimulation Systems and Methods | 3,015,372<br> 3,015,372 A1<br> - | 08/21/2018<br> 09/14/2017<br> - |
| Europe (EPO) | Cardiac Contractility Neurostimulation Systems and Methods | 17763935.8<br> 3,426,338 A1<br> - | 08/24/2018<br> 01/16/2019<br> - |
| Israel | Cardiac Contractility Neurostimulation Systems and Methods | 261,591<br> 261,591 D0<br> 261,591 A | 09/04/2018<br> 10/31/2018<br> 09/02/2022 |
| Japan | Cardiac Contractility Neurostimulation Systems and Methods | 2022-016226<br> 2022-058901 A<br> 7410194 | 02/04/2022<br> 04/12/2022<br> 01/09/2024 |
| US | Neurostimulation Systems and Methods for Affecting Cardiac Contractility | 62/558,169<br> N/A<br> N/A | 09/13/2017<br> N/A<br> N/A |
| US | Neurostimulation Systems and Methods for Affecting Cardiac Contractility | 62/623,648<br> N/A<br> N/A | 01/30/2018<br> N/A<br> N/A |
| US | Neurostimulation Systems and Methods for Affecting Cardiac Contractility | 62/676,188<br> N/A<br> N/A | 05/24/2018<br> N/A<br> N/A |
| PCT | Neurostimulation Systems and Methods for Affecting Cardiac Contractility | PCT/US2018/050522<br> WO 2019/055434<br> N/A | 09/11/2018<br> 03/21/2019<br> N/A |
| US | Methods for Detecting Catheter Movement | 16/816,681<br> 2020/02060511<br> 11,559,687 | 03/12/2020<br> 07/02/2020<br> 01/24/2023 |
| US | Methods of Detecting Catheter Movement | 18/157,496<br> 2023/0248976<br> - | 01/20/2023<br> 08/10/2023<br> - |
| Australia | Neurostimulation Systems and Methods for Affecting Cardiac Contractility | 2018333929<br> 2018333929 A1<br> - | 03/18/2020<br> 04/09/2020<br> - |
| Europe (EPO) | Neurostimulation Systems and Methods for Affecting Cardiac Contractility | 18856016.3<br> 3,664,703 A1<br> - | 03/11/2020<br> 06/17/2020<br> - |
| US | Systems and Methods for Monitoring Nerve Engagement | 62/718,147<br> N/A<br> N/A | 08/13/2018<br> N/A<br> N/A |
| US | Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 62/840,608<br> N/A<br> N/A | 04/30/2019<br> N/A<br> N/A |
| US | Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 62/867,438<br> N/A<br> N/A | 06/27/2019<br> N/A<br> N/A |
| PCT | Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | PCT/US2019/046202<br> WO 2020/036886<br> N/A | 08/12/2019<br> 02/20/2020<br> N/A |
| US | Partially Woven Expandable Members | 17/018,887<br> 2021/0001116<br> 11,077,298 | 09/11/2020<br> 01/07/2021<br> 08/03/2021 |

---

------

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| | | | |
|:---|:---|:---|:---|
| **Country** | **Title** | **App. No.**<br> **Pub. No.**<br> **Pat. No.** | **Filing Date**<br> **Pub. Date**<br> **Issue Date** |
| US | Electrode Assemblies for Neuromodulation | 17/391,316<br> 2021/0370055<br> 11,648,395 | 08/02/2021<br> 12/02/2021<br> 05/16/2023 |
| US | Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 18/296,873<br> 2023/0390551<br> - | 04/06/2023<br> 12/07/2023<br> - |
| Australia | Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 2019320750<br> 2019320750 A1<br> - | 03/09/2021<br> 04/08/2021<br> - |
| Canada | Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 3,107,959<br> 3,107,959 A1<br> - | 01/27/2021<br> 02/20/2020<br> - |
| China | Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 201980067356.8<br> 112839602 A<br> - | 04/12/2021<br> 05/25/2021<br> - |
| Europe | Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 19849636.6<br> 3,836,859 A1<br> - | 03/01/2021<br> 06/23/2021<br> - |
| India | Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 202117004872<br> 202117004872 A<br> - | 02/04/2021<br> 04/02/2021<br> - |
| Israel | Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 280,556<br> 280,556 D0<br> - | 02/01/2021<br> 03/25/2021<br> - |
| Japan | Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 2021-506698<br> 2021-535776 A<br> - | 02/08/2021<br> 12/23/2021<br> - |
| Singapore | Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 11202101191P<br> 11202101191P A<br> - | 02/04/2021<br> 03/30/2021<br> - |
| US | Systems and Methods for Denoising Physiological Signals During Electrical Neuromodulation | 62/843,772<br> N/A<br> N/A | 05/06/2019<br> N/A<br> N/A |
| PCT | Systems and Methods for Denoising Physiological Signals During Electrical Neuromodulation | PCT/US2020/031358<br> WO 2020/227234<br> N/A | 05/04/2020<br> 11/12/2020<br> N/A |
| US | Systems and Methods for Denoising Physiological Signals During Electrical Neuromodulation | 17/520,131<br> 2022/0054090<br> 11,607,176 | 11/05/2021<br> 02/24/2022<br> 03/21/2023 |
| US | Systems and Methods for Denoising Physiological Signals During Electrical Neuromodulation | 18/182,985<br> -<br> - | 03/13/2023<br> -<br> - |
| US | Systems and Methods for Denoising Physiological Signals During Electrical Neuromodulation | 18/508,047<br> -<br> - | 11/13/2023<br> -<br> - |
| Australia | Systems and Methods for Denoising Physiological Signals During Electrical Neuromodulation | 2020269601<br> 2020269601 A1<br> - | 11/03/2021<br> 12/02/2021<br> - |
| Canada | Systems and Methods for Denoising Physiological Signals During Electrical Neuromodulation | 3,137,307<br> 3,137,307 A1<br> - | 10/18/2021<br> 11/12/2020<br> - |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **Country** | **Title** | **App. No.**<br> **Pub. No.**<br> **Pat. No.** | **Filing Date**<br> **Pub. Date**<br> **Issue Date** |
| China | Systems and Methods for Denoising Physiological Signals During Electrical Neuromodulation | 202080048242.1<br> 114040704 A<br> - | 12/30/2021<br> 02/11/2022<br> - |
| Europe | Systems and Methods for Denoising Physiological Signals During Electrical Neuromodulation | 20801644.4<br> 3,965,639 A1<br> - | 11/24/2021<br> 03/16/2022<br> - |
| India | Systems and Methods for Denoising Physiological Signals During Electrical Neuromodulation | 202117048285<br> Journal No. 08/2022<br> - | 10/22/2021<br> 02/25/2022<br> - |
| Israel | Systems and Methods for Denoising Physiological Signals During Electrical Neuromodulation | 287,732<br> 287,732 D0<br> - | 10/31/2021<br> 12/01/2021<br> - |
| Japan | Systems and Methods for Denoising Physiological Signals During Electrical Neuromodulation | 2021-562115<br> 2022-531658<br> - | 10/19/2021<br> 07/08/2022<br> - |
| Singapore | Systems and Methods for Denoising Physiological Signals During Electrical Neuromodulation | 1120211619W<br> 11202111619W A<br> - | 10/22/2021<br> 11/29/2021<br> - |
| US | Chronically Implantable Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 63/039,914<br> N/A<br> N/A | 06/16/2020<br> N/A<br> N/A |
| PCT | Chronically Implantable Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | PCT/US2021/037013<br> WO 2021/257399<br> N/A | 06/11/2021<br> 12/23/2021<br> N/A |
| US | Chronically Implantable Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 18/001,638<br> 2023/0256252<br> - | 12/13/2022<br> 08/17/2023<br> - |
| Australia | Chronically Implantable Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 2021293019<br> 2021293019 A1-<br> - | 01/12/2023<br> 02/23/2023<br> - |
| Canada | Chronically Implantable Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 3181526<br> 3181526 A1<br> - | 12/05/2022<br> 12/23/2021<br> - |
| China | Chronically Implantable Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 202180058937.2<br> 116075335 A<br> - | 01/31/2023<br> 05/05/2023<br> - |
| Europe | Chronically Implantable Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 21826118.8<br> 4164737<br> - | 01/16/2023<br> 04/19/2023<br> - |
| India | Chronically Implantable Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 202317002586<br> -<br> - | 01/12/2023<br> 10/13/2023<br> - |
| Japan | Chronically Implantable Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 2022-575383<br> 2023-530886 A<br> - | 12/07/2022<br> 07/20/2023<br> - |
| Singapore | Chronically Implantable Systems and Methods for Affecting Cardiac Contractility and/or Relaxation | 11202261118Y<br> -<br> - | 12/12/2022<br> -<br> - |
| US | Methods and Systems for Neuromodulation Stimulation System Selection | 63/305,509<br> N/A<br> N/A | 02/01/2022<br> N/A<br> N/A |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **Country** | **Title** | **App. No.**<br> **Pub. No.**<br> **Pat. No.** | **Filing Date**<br> **Pub. Date**<br> **Issue Date** |
| PCT | Methods and Systems for Neuromodulation | PCT/US2023/061589<br> WO 2023/150489<br> N/A | 01/30/2023<br> 08/10/2023<br> N/A |
| US | Systems and Methods for Providing Cardiac Pulmonary Nerve Stimulation | 63/588,123<br> N/A<br> N/A | 10/05/2023<br> N/A<br> N/A |

---

------

**<u>SCHEDULE B</u>**

**Trademarks**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country** | **Mark** | **Class** | **Status** | **App. No.**<br> **Reg. No.** | **Filing Date**<br> **Reg. Date** |
| US | CARDIONOMIC | 10 | Registered | 87/665,412<br> 6356282 | 10/30/2017<br> 05/18/2021 |
| WO | CARDIONOMIC | 10 | Registered | 1410316<br> 1410316 | 04/19/2018<br> 07/05/2018 |
| Australia | CARDIONOMIC | 10 | Registered | 1410316<br> 1410316 | 04/19/2018<br> 02/25/2019 |
| Canada | CARDIONOMIC | 10 | Registered | 1896408<br> TMA1111666 | 04/19/2018<br> 10/15/2021 |
| Switzerland | CARDIONOMIC | 10 | Registered | 1410316<br> 1410316 | 04/19/2018<br> 06/25/2019 |
| China | CARDIONOMIC | 10 | Registered | 1410316<br> 1410316 | 04/19/2018<br> 12/19/2018 |
| Europe (EUIPO) | CARDIONOMIC | 10 | Registered | 1410316<br> 1410316 | 04/19/2018<br> 12/07/2018 |
| UK | CARDIONOMIC | 10 | Registered | 1410316<br> UK00801410316 | 04/19/2018<br> 12/07/2018 |
| India | CARDIONOMIC | 10 | Registered | 1410316<br> 1410316 | 04/19/2018<br> 02/06/2019 |
| Israel | CARDIONOMIC | 10 | Registered | 1410316<br> 1410316 | 04/19/2018<br> 05/02/2019 |
| Japan | CARDIONOMIC | 10 | Registered | 1410316<br> 1410316 | 04/19/2018<br> 04/25/19 |
| South Korea | CARDIONOMIC | 10 | Registered | 1410316<br> 1410316 | 04/19/2018<br> 06/28/2019 |
| New Zealand | CARDIONOMIC | 10 | Registered | 1410316<br> 1410316 | 04/19/2018<br> 10/30/2018 |
| Russia | CARDIONOMIC | 10 | Registered | 1410316<br> 1410316 | 04/19/2018<br> 01/15/2019 |
| Singapore | CARDIONOMIC | 10 | Registered | 1410316<br> 1410316 | 04/19/2018<br> 12/24/2018 |
| US | NVAD | 10 | Registered | 87/665,418<br> 6356283 | 10/30/2017<br> 05/18/2021 |
| WO | NVAD | 10 | Registered | 1410188<br> 1410188 | 04/19/2018<br> 07/05/2018 |
| Australia | NVAD | 10 | Registered | 1410188<br> 1410188 | 04/19/2018<br> 04/04/2019 |
| Canada | NVAD | 10 | Registered | 1896403<br> TMA1099214 | 04/19/2018<br> 04/28/2021 |
| Switzerland | NVAD | 10 | Registered | 1410188<br> 1410188 | 04/19/2018<br> 06/13/2019 |
| China | NVAD | 10 | Registered | 1410188<br> 1410188 | 04/19/2018<br> 12/17/2018 |
| Europe (EUIPO) | NVAD | 10 | Registered | 1410188<br> 1410188 | 04/19/2018<br> 12/07/2018 |
| UK | NVAD | 10 | Registered | 1410188<br> UK00801410188 | 04/19/2018<br> 12/07/2018 |
| India | NVAD | 10 | Registered | 1410188<br> 1410188 | 04/19/2018<br> 02/06/2019 |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country** | **Mark** | **Class** | **Status** | **App. No.**<br> **Reg. No.** | **Filing Date**<br> **Reg. Date** |
| Japan | NVAD | 10 | Registered | 1410188<br> 1410188 | 04/19/2018<br> 04/25/2019 |
| South Korea | NVAD | 10 | Registered | 1410188<br> 1410188 | 04/19/2018<br> 06/12/2019 |
| New Zealand | NVAD | 10 | Registered | 1410188<br> 1410188 | 04/19/2018<br> 10/30/2018 |
| Russia | NVAD | 10 | Registered | 1410188<br> 1410488 | 04/19/2018<br> 01/15/2019 |
| Singapore | NVAD | 10 | Registered | 1410188<br> 141088 | 04/19/2018<br> 12/24/2018 |
| US | CPNS | 10 | Registered | 87/665,423<br> 6356284 | 10/30/2017<br> 05/18/2021 |
| WO | CPNS | 10 | Registered | 1410189<br> 1410189 | 04/19/2018<br> 07/05/2018 |
| Australia | CPNS | 10 | Registered | 1410189<br> 1410189 | 04/19/2018<br> 02/25/2019 |
| Canada | CPNS | 10 | Registered | 1896402<br> TMA1111667 | 04/19/2018<br> 10/15/2021 |
| Switzerland | CPNS | 10 | Registered | 1410189<br> 1410189 | 04/19/2018<br> 05/31/2019 |
| China | CPNS | 10 | Registered | 1410189<br> 1410189 | 04/19/2018<br> 12/17/2018 |
| Europe (EUIPO) | CPNS | 10 | Registered | 1410189<br> 1410189 | 04/19/2018<br> 12/07/2018 |
| UK | CPNS | 10 | Registered | 1410189<br> UK00801410189 | 04/19/2018<br> 12/07/2018 |
| India | CPNS | 10 | Registered | 1410189<br> 1410189 | 04/19/2018<br> 01/31/2019 |
| Israel | CPNS | 10 | Registered | 1410189<br> 1410189 | 04/19/2018<br> 05/02/2019 |
| Japan | CPNS | 10 | Registered | 1410189<br> 1410189 | 04/19/2018<br> 04/25/2019 |
| South Korea | CPNS | 10 | Registered | 1410189<br> 1410189 | 04/19/2018<br> 06/12/2019 |
| New Zealand | CPNS | 10 | Registered | 1410189<br> 1410189 | 04/19/2018<br> 10/30/2018 |
| Singapore | CPNS | 10 | Registered | 1410189<br> 1410189 | 04/19/2018<br> 12/24/2018 |

---

## Exhibit 10.1

**Exhibit 10.1**

![ltlogo.jpg](ltlogo.jpg)

*Strictly Confidential*

April 16, 2025

Catheter Precision, Inc.

1670 Highway 160 West

Suite 205

Fort Mill SC 29708

Attention: David A Jenkins Chief Executive Officer

**AMENDMENT TO INVESTMENT BANKING AGREEMENT**

Dear Mr. Jenkins:

Reference is made to that certain Investment Banking Agreement ("Original Agreement") dated May 9, 2024, by and between Ladenburg Thalmann & Co. Inc. (''Ladenburg") and Catheter Precision, Inc. and its subsidiaries, affiliates, beneficiaries, successors and assigns (collectively, the "Company"). Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Original Agreement.

Pursuant to this Amendment to Investment Banking Agreement (this "Amendment"), Ladenburg and the Company hereby agree to amend the Original Agreement as follows:

Section 2 of the Original Agreement is deleted and replaced with the following:

**Term of Engagement.** The term of our engagement hereunder shall be for a period commencing on the date hereof and expiring on September 30, 2025 (the ''Term"). In the event that Nicholas Stergis ceases to be an employee of Ladenburg during the Term, then (a) this Agreement shall terminate 90 days after his last day as an employee of Ladenburg, unless he continues to manage the engagement under a written agreement with Ladenburg; and (b) the provisions of Paragraph 5 shall have no force or effect. The provisions of Paragraphs 4, 5 and 6 and Exhibit A, which is attached hereto and incorporated herein, shall survive any termination or expiration of this Agreement.

All other provisions or the Original Agreement shall remain unchanged and shall continue in full force and effect. If the foregoing correctly sets forth our agreement, please execute the enclosed copy of this Amendment in the space provided and return it to us.

---

| |
|:---|
| Very truly<sub> </sub>yours, |
| **LADENBURG THALMANN & CO. lNC.** |
| By:<u>/s/ Nicholas Stergis</u> |
| Name: Nicholas Stergis |
| Title: Managing Director |

---

Confirmed and agreed to this 16th day of April 2025

**CATHETER PRECISION, INC.**

By: <u>/s/ David A. Jenkins</u>

Name: David A. Jenkins

Title: CEO

## Exhibit 10.6

**Exhibit 10.6**

![ltlogo.jpg](ltlogo.jpg)

***Strictly Confidential***

February 11, 2025

Catheter Precision. Inc.

1670 Highway 160 West

Suite 205

Fort Mill, SC 29708

Attention: David Jenkins, Chief Executive Officer

**INVESTMENT BANKING AGREEMENT**

Dear Mr. Jenkins:

We are pleased to confirm our mutual understanding regarding the retention of Ladenburg Thalmann & Co. Inc. ("Ladenburg") by Catheter Precision, Inc., its subsidiaries, affiliates, beneficiaries, successors, and assigns (collectively, the "Company"), subject to the terms and conditions of this agreement (the

"Agreement").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Purpose of Engagement.** Ladenburg will act as the Company's exclusive agent in connection with a proposed At-the-Market equity offering (the "Transaction") by the Company of its common stock (the "Securities"), pursuant to a prospectus supplement which will be filed with the U.S. Securities and Exchange Commission ("SEC"). Ladenburg and the Company agree and acknowledge that this Agreement should not be construed as a firm commitment or guarantee of any Transaction. It is acknowledged and agreed that the decision to consummate a Transaction shall be subject to the approval of Ladenburg's commitment committee, and furthermore shall be in the Company's sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Term of Engagement.** The term of our engagement hereunder shall be for a period commencing on the date hereof and expiring upon the termination of the ATM Agreement (as defined below). The Company may terminate this Agreement and the ATM Agreement on five (5) days' written notice. Notwithstanding any termination or expiration of this Agreement, the provisions of Paragraphs 4 and 5 and Exhibit A, which is attached hereto and incorporated herein, shall survive such termination or expiration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Terms of Transaction.** The terms of the transaction will be described more fully in an Equity Distribution Agreement ("ATM Agreement"), which the Company and Ladenburg will negotiate in good faith. No party shall have any obligation to execute an ATM Agreement and any determination to do so shall be in the sole and absolute discretion of each party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Compensation.** The ATM Agreement will provide for a commission equal to 3.0% of the gross proceeds from Securities sold in the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Reimbursement of Expenses**. In addition to the fees described in Paragraph 4 above, the Company agrees to reimburse Ladenburg promptly, upon request from time to time, for all reasonable, out-of-pocket expenses incurred by Ladenburg (including travel, databases, fees and disbursements of counsel, and of other consultants and advisors retained by Ladenburg, etc.) in connection with the matters contemplated by this Agreement up to $50,000 and up to $5,500 quarterly thereafter.

------

Catheter Precision, Inc.

February 11, 2025

Page 2 of 6

We look forward to formalizing our business relationship. If the foregoing and the attached Exhibit A correctly set forth our agreement, please execute the enclosed copy of this letter in the space provided and return it to us.

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **LADENBURG THALMANN** & **CO. INC.** | **LADENBURG THALMANN** & **CO. INC.** |
| By:  | <u>/s/ Nicholas Stergis</u> |

---

Name: &nbsp;&nbsp;&nbsp;&nbsp;Nicholas Stergis <br> Title: &nbsp;&nbsp;&nbsp;&nbsp;Managing Director

Confirmed and agreed to this <u>12</u><sup>th</sup> ** day of February 2025

---

| | |
|:---|:---|
| **CATHETER PRECISION, INC.** | **CATHETER PRECISION, INC.** |
| By:  | <u>/s/ David A. Jenkins</u>  |

---

Name: &nbsp;&nbsp;&nbsp;&nbsp;David A Jenkins <br> Title: CEO

------

Catheter Precision, Inc.

February 11, 2025

Page 3 of 6

<u>**EXHIBIT A**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)  **<u>Representations of the Company</u>.** The Company hereby represents and warrants that any and all information supplied hereunder to Ladenburg in connection with any and all services to be performed hereunder by Ladenburg for and on behalf of the Company shall be, to the best of the Company's knowledge, true, complete and correct as of the date of such dissemination and shall not fail to state a material fact necessary to make any of such information not misleading. The Company hereby acknowledges that the ability of Ladenburg to adequately provide services as described herein is dependent upon the prompt dissemination of accurate, correct and complete information to Ladenburg. The Company further represents and warrants hereunder that this Agreement and the transactions contemplated hereunder have been duly and validly authorized by all requisite corporate action; that the Company has the full right, power and capacity to execute, deliver and perform its obligations hereunder; and that this Agreement, upon execution and delivery of the same by the Company, will represent the valid and binding obligation of the Company enforceable in accordance with its terms. The representations and warranties set forth herein shall survive the termination or expiration of this Agreement. Ladenburg shall have the benefit of, and shall be an intended third party beneficiary of, the identical representations and warranties provided to an Investor(s) in a securities purchase agreement or similar document entered into in connection with a Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)  **<u>Indemnification</u>.** The Company hereby agrees to indemnify and hold Ladenburg, its officers, directors, principals, employees, affiliates, and members, and their successors and assigns, harmless from and against any and all loss, claim, damage, liability, deficiencies, actions, suits, proceedings, costs and legal expenses or expense whatsoever (including, but not limited to, reasonable legal fees and other expenses and reasonable disbursements incurred in connection with investigating, preparing to defend or defending any action, suit or proceeding, including any inquiry or investigation, commenced or threatened, or any claim whatsoever, or in appearing or preparing for appearance as witness in any proceeding, including any pretrial proceeding such as a deposition) (collectively, "Losses") arising out of, based upon, or in any way related or attributed to, (i) any breach of a representation, warranty or covenant by the Company contained in this Agreement or (ii) any activities or services performed hereunder by Ladenburg, unless it is finally judicially determined in a court of competent jurisdiction that such Losses were the primary and direct result of the intentional misconduct or gross negligence of Ladenburg in performing the services hereunder. If Ladenburg receives written notice of the commencement of any legal action, suit or proceeding with respect to which the Company is or may be obligated to provide indemnification pursuant to this Section (C), Ladenburg shall, within thirty (30) days of the receipt of such written notice, give the Company written notice thereof (a "Claim Notice"). Failure to give such Claim Notice within such thirty (30) day period shall not constitute a waiver by Ladenburg of its right to indemnity hereunder with respect to such action, suit or proceeding. Upon receipt by the Company of a Claim Notice from Ladenburg with respect to any claim for indemnification which is based upon a claim made by a third party ("Third Party Claim"), the Company may assume the defense of the Third Party Claim with counsel of its own choosing, as described below. Ladenburg shall cooperate in the defense of the Third Party Claim and shall furnish such records, information and testimony and attend all such conferences, discovery proceedings, hearings, trial and appeals as may be reasonably required in connection therewith. Ladenburg shall have the right to employ its own counsel in any such action. The Company shall not satisfy or settle any Third Party Claim for which indemnification has been sought and is available hereunder, without the prior written consent of Ladenburg, which consent shall not be delayed and which shall not be required if Ladenburg is granted a release in connection therewith. The indemnification provisions hereunder shall survive the termination or expiration of this Agreement. The Company further agrees, upon demand by Ladenburg, to promptly reimburse Ladenburg for, or pay, any loss, claim, damage, liability or expense as to which Ladenburg has been indemnified herein with such reimbursement to be made currently as any loss, damage, liability or expense is incurred by Ladenburg. Notwithstanding the provisions of the aforementioned indemnification, any such reimbursement or payment by the Company of fees, expenses, or disbursements incurred by Ladenburg shall be repaid by Ladenburg in the event of any proceeding in which a final judgment (after all appeals or the expiration of time to appeal) is entered in a court of competent jurisdiction against Ladenburg based solely upon its gross negligence or intentional misconduct in the performance of its duties hereunder, and provided further, that the Company shall not be required to make reimbursement or payment for any settlement effected without the Company's prior written consent (which consent shall not be unreasonably withheld or delayed).

------

Catheter Precision. Inc.

February 11, 2025

Page 4 of 6

If for any reason the foregoing indemnification is unavailable or is insufficient to hold Ladenburg harmless, the Company agrees to contribute the amount paid or payable by Ladenburg in such proportion as to reflect not only the relative benefits received by the Company, as the case may be, on the one hand, and Ladenburg, on the other hand, but also the relative fault of the Company and Ladenburg as well as any relevant equitable considerations. In no event shall Ladenburg contribute in excess of the fees actually received by it pursuant to the terms of this Agreement.

For purposes of this Agreement, each officer, director, member, and employee or affiliate of Ladenburg and each person, if any, who controls Ladenburg (or any affiliate) within the meaning of either Section 15 of the Securities Act of 1933, as amended, or Section 20 of the Securities Exchange Act of 1934, as amended, shall have the same rights as Ladenburg with respect to matters of indemnification by the Company hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)  **<u>Independent Contractor</u>.** It is expressly understood and agreed that Ladenburg shall, at all times, act as an independent contractor with respect to the Company and not as an employee or agent of the Company, and nothing contained in this Agreement shall be construed to create a joint venture, partnership, association or other affiliation, or like relationship, between the parties. It is specifically agreed that the relationship is and shall remain that of independent parties to a contractual relationship and that Ladenburg shall have no right to bind the Company in any manner. In no event shall either party be liable for the debts or obligations of the other except as otherwise specifically provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)  **<u>Amendment</u>.** No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is evidenced by a written instrument, executed by the party against which such modification, waiver, amendment, discharge, or change is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)  **<u>Notices</u>.** All notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly given when delivered in person or transmitted by facsimile transmission or on the third calendar day after being mailed by United States registered or certified mail, return receipt requested, postage prepaid, to the addresses herein above first mentioned or to such other address as any party hereto shall designate to the other for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)  **<u>Entire Agreement</u>.** This Agreement contains all of the understandings and agreements of the parties with respect to the subject matter discussed herein. All prior agreements shall remain in full force and effect in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G)  **<u>Severability</u>.** The invalidity, illegality or unenforceability of any provision or provisions of this Agreement will not affect any other provision of this Agreement, which will remain in full force and effect, nor will the invalidity, illegality or unenforceability of a portion of any provision of this Agreement affect the balance of such provision. In the event that any one or more of the provisions contained in this Agreement or any portion thereof shall for any reason be held to be invalid, illegal or unenforceable in any respect, this Agreement shall be reformed, construed and enforced as if such invalid, illegal or unenforceable provision had never been contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H)  **<u>Construction; Venue</u>.** This Agreement shall be governed by and construed in accordance with the laws of the State of New York. The Company agrees that the sole and exclusive venue for any matters arising hereunder shall be a court of competent jurisdiction in New York, New York and agrees to waive any objections to such venue. This provision supersedes, waives and displaces any right to arbitration. EACH OF LADENBURG AND THE COMPANY HEREBY EXPRESSLY WAIVE ALL RIGHTS TO FINRA ARBITRATION. EACH OF LADENBURG AND THE COMPANY HEREBY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING, SUIT OR CLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT.

------

Catheter Precision, Inc.

February 11, 2025

Page 5 of 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I)  **<u>Binding Nature</u>.** The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties, and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J)  **<u>Counterparts</u>.** This Agreement may be executed in any number of counterparts, including facsimile signatures, which shall be deemed as original signatures. All executed counterparts shall constitute one Agreement, notwithstanding that all signatories are not signatories to the original or the same counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K)  **<u>Attorneys' Fees and Court Costs</u>.** If any party to this Agreement brings an action, directly or indirectly based upon this Agreement or the matters contemplated hereby against the other party, the prevailing party shall be entitled to recover, in addition to any other appropriate amounts, its reasonable costs and expenses in connection with such proceeding, including, but not limited to, reasonable attorneys' fees and court costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(L)  **<u>Computer Virus</u>.** During the course of this engagement, Ladenburg may exchange electronic versions of documents and emails with you using commercially available software. Unfortunately, the technology community is occasionally victimized by the creation and dissemination of so-called viruses, or similar destructive electronic programs. Ladenburg takes the issues raised by these viruses seriously and has invested in document and email scanning software that identifies and rejects files containing known viruses. Ladenburg also updates its system with the software vendor's most current releases at regular intervals. By utilizing this virus scanning software, Ladenburg's system may occasionally reject a communication you send. Ladenburg in turn may send you something that is rejected by your system. This infrequent occurrence is to be expected as part of the ordinary course of business. Because the virus protection industry is generally one or two steps behind new viruses, Ladenburg cannot guarantee that its communications and documents will always be virus free. Occasionally, a virus will escape and go undetected as it is passed from system to system. Although Ladenburg believes its virus protection measures are excellent, it can make no warranty that its documents will be virus free at all times. Please inform Ladenburg immediately in the event a virus enters your company's system via any electronic means originating from Ladenburg. Through cooperative efforts, disruption to communications can be minimized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(M)  **<u>Information Disclosure</u>.** Ladenburg may disclose any information when it is believed necessary for the conduct of its business, or where disclosure is required by law. For example, information may be disclosed for audit or research purposes, or to law enforcement and regulatory agencies to do such things as prevent fraud. Information may also be disclosed to affiliates as well as to others that are outside Ladenburg. Ladenburg may make other disclosures of information as permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(N)  **<u>Legal Services</u>.** While certain principals of Ladenburg are attorneys, Ladenburg is not, in any manner, providing legal services or legal advice to the Company. Furthermore, the Company agrees and acknowledges that Ladenburg is not an advisor as to tax, accounting or regulatory matters in any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(O)  **<u>Securities Trading and Other Activities</u>.** Ladenburg is a full service securities firm engaged, directly or indirectly, in various activities, including securities trading, investment management, financing and brokerage activities. The Company agrees and acknowledges that in the ordinary course of these activities, Ladenburg and its affiliates may actively trade the debt or equity securities (or related derivative securities) of the Company and other companies which may be the subject of the engagement contemplated by this Agreement for its own account and for the accounts of its customers and may at any time hold long and short positions in such securities. The Company further agrees and acknowledges that Ladenburg and its affiliates also may from time to time perform various investment banking and financial advisory services for other clients and customers who may have conflicting interests with respect to the Company or the Transaction and nothing herein shall in any way limit Ladenburg's, or its affiliates', ability to provide such services.

------

Catheter Precision, Inc.

February 11, 2025

Page 6 of 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(P) <u>**No Fiduciary Duties**</u> **.** The Company represents that it is a sophisticated business enterprise that has retained Ladenburg for the limited purposes set forth in this Agreement, and the parties acknowledge and agree that their respective rights and obligations are contractual in nature. Each party disclaims any intention to impose fiduciary obligations on the other by virtue of the engagement contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Q)  **<u>USA Patriot Act</u>.** If necessary, the Company agrees to provide Ladenburg with information and supporting documentation to enable Ladenburg to comply with the requirements under Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 ("USA Patriot Act") (Public Law 107-56).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(R)  **<u>Marketing</u>.** Ladenburg shall have the ability to publicize (i.e., use of the Company logo in its marketing materials) its role in providing the Company with the services noted herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(S)  **<u>Representations and Warranties of Ladenburg</u>.** Ladenburg represents, acknowledges and agrees that: (i) Ladenburg is, and at all times during the term of this Agreement will be, properly registered as a broker dealer pursuant to Section 15(b) of the Securities Exchange Act of 1934, as amended, and under the laws of each applicable state, and in good standing with the Financial Industry Regulatory Authority, Inc. ("FINRA"); and (ii) all services contemplated by this Agreement will be performed in material compliance with all applicable laws, including, without limitation, FINRA rules and regulations.

## Exhibit 31.1

**EXHIBIT 31.1**

**Certification of Principal Executive Officer Pursuant to Exchange Act Rule 13a-14(a)/15d-14(a)**

**as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, David A. Jenkins, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 of Catheter Precision, Inc.;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and 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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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: August 11, 2025

---

| |
|:---|
| /s/ David A. Jenkins |
| David A. Jenkins |
| Executive Chairman of the Board and<br> Chief Executive Officer |
| (Principal Executive Officer) |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**Certification of Principal Financial Officer Pursuant to Exchange Act Rule 13a-14(a)/15d-14(a)**

**as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Philip Anderson, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 of Catheter Precision, Inc.;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and 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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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: August 11, 2025

---

| |
|:---|
| /s/ Philip Anderson |
| Philip Anderson |
| Chief Financial Officer |
| (Principal Financial Officer) |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted**

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, David A. Jenkins, Executive Chairman of the Board and Chief Executive Officer of Catheter Precision, Inc. (the "Company"), hereby certify, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the Quarterly Report on Form 10-Q for the six -month period ended June 30, 2025 (the "Report") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

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

Date: August 11, 2025

---

| |
|:---|
| /s/ David A. Jenkins |
| David A. Jenkins |
| Executive Chairman of the Board and<br> Chief Executive Officer |
| (Principal Executive Officer) |

---

## Exhibit 32.2

**EXHIBIT 32.2**

**Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted**

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Philip Anderson, Chief Financial Officer of Catheter Precision, Inc. (the "Company"), hereby certify, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the Quarterly Report on Form 10-Q for the six -month period ended June 30, 2025 (the "Report") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

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

Date: August 11, 2025

---

| |
|:---|
| /s/ Philip Anderson |
| Philip Anderson |
| Chief Financial Officer |
| (Principal Financial Officer) |

---