VTAK: Catheter Precision’s Q3 Results Could Surprise You!

Company Overview

Catheter Precision, Inc. (NYSE American: VTAK) is a U.S.-based medical device company focused on cardiac electrophysiology products (^[1]). The company’s flagship technologies are VIVO (an FDA-cleared noninvasive 3D mapping system for ventricular arrhythmias) and LockeT (a vascular closure assist device) (^[2]) (^[3]). Catheter Precision became publicly traded through a January 2023 merger with Ra Medical Systems, a deal that brought these products to market and changed the company’s name and ticker later that year (^[4]) (^[5]). However, the post-merger period was challenging – the company initially recognized over $60 million of goodwill from the acquisition but fully wrote it off by year-end 2023 due to a collapse in share price and market value (^[6]) (^[6]). Today, Catheter Precision remains a microcap medtech in early commercialization mode (market cap was only about $3 million in early 2025) (^[7]), with a strategy centered on expanding the adoption of VIVO and LockeT in hospitals worldwide.

Q3 Financial Highlights – Surging Revenue on a Small Base

Catheter Precision’s latest third quarter results showed a sharp uptick in sales – albeit from a low base – that may surprise investors used to its minimal revenues. Q3 2025 revenue was $226,000, up 135% year-over-year from just $96,000 in Q3 2024 (^[8]). Similarly, total revenue for the first nine months of 2025 reached $581,000, more than double the $271,000 generated in the same period of 2024 (^[8]). This growth reflects increased commercial traction for the LockeT closure device and VIVO system, following a “transitional year” in 2024 when the sales team was rebuilt and new distribution partnerships were forged (^[7]). Indeed, management noted that by year-end 2024, 26 different medical institutions were evaluating the LockeT device – a promising signal for future orders (^[7]).

Importantly, losses have narrowed as revenue climbs. The Q3 2025 net loss came in at $2.25 million, a significant improvement from the ~$4.1 million loss incurred in Q3 2024 (^[8]) (^[1]). Part of this improvement is due to higher sales and perhaps cost controls, though Catheter Precision is still far from breakeven. For context, full-year 2024 revenue was only $420,000 against a net loss of $16.6 million (with ~$7.5 million in non-cash charges) (^[7]). The company continues to burn cash as it invests in commercialization – for example, Q4 2024 saw a $5.6 million net loss despite revenue rising to $149,000 (^[7]). On a sequential basis, however, the trend is positive: Q4 2024 sales were 55% higher than Q3 2024, and that momentum carried into 2025 (^[7]). Management has expressed optimism that recent milestones – such as obtaining CE Mark approval for LockeT in Europe and publishing supportive clinical studies – will help accelerate adoption and sales growth in 2025 (^[7]). Whether this growth can continue at triple-digit percentages is an open question, but Q3’s jump in revenue illustrates the early traction being achieved.

Dividend Policy and Yield

Dividends: Catheter Precision has never paid a dividend and has no plans to do so in the foreseeable future (^[6]). As a development-stage medical device company, any available capital is being reinvested into product development and commercialization rather than shareholder payouts (^[6]) (^[6]). The company explicitly states that it intends to retain all earnings (if and when generated) to fund growth and does not anticipate declaring cash dividends for the foreseeable future (^[6]). Consequently, dividend yield is 0%, and income-focused investors have no history of distributions to evaluate. This policy is typical for small-cap biotech/medtech firms that operate at a net loss – until Catheter Precision achieves consistent profits and positive cash flow, shareholders should not expect any return of capital via dividends.

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(Note: Metrics like FFO/AFFO are not applicable here, as Catheter Precision is not a REIT and does not generate funds from operations in the real estate sense. In fact, with negative earnings and cash flow, traditional valuation metrics tied to profits are currently unusable.)

Leverage, Debt Maturities, and Coverage

Despite its large accumulated deficit, Catheter Precision carries relatively modest debt in absolute terms – but its ability to service any debt depends on external financing, given ongoing operating losses. As of year-end 2024, the company had no material long-term bank debt aside from small legacy loans and insider financing. A minor bank loan with a 9.99% interest rate had an outstanding balance of $177,000 as of December 31, 2024 (^[6]). (An earlier loan of ~$184,000 at 8.99% was paid off in mid-2024 (^[6]).) These conventional debts are negligible in size and largely a footnote in the capital structure.

More significant is the reliance on related-party loans from the company’s own CEO and affiliates. In Q2–Q3 2024, Catheter Precision raised a total of $1.5 million in bridge financing from its Executive Chairman/CEO, David Jenkins, and entities he controls (^[6]). These insider loans initially carried an 8% interest rate and were set to mature August 30, 2024 (^[6]). Just before maturity, the company negotiated an extension: on August 23, 2024, it amended the notes to push out the due date to January 31, 2026 and increased the interest rate to 12% per annum (^[6]) (^[6]). All accrued interest through the amendment date was paid to the noteholders (i.e. the CEO and his affiliates) as part of this extension (^[6]). As of year-end 2024, the related-party notes plus accrued interest totaled about $1.6 million owed (the principal $1.5 million plus ~$61k interest) (^[6]). While this insider financing demonstrates the CEO’s support and commitment, it also underscores the company’s difficulty in obtaining outside capital – and it creates a hard obligation in 2026 that will need to be met or refinanced. Interest coverage on these notes is currently nil from operations (since the company has negative EBITDA), meaning repayment will likely depend on raising additional funds or converting debt to equity.

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Another sizeable “shadow” liability stemming from the merger is the royalty obligation to Catheter Precision’s founders or early stakeholders. The company is obligated to pay royalties on future LockeT device sales under agreements that Old Catheter (the predecessor entity) had entered into (^[6]). At the time of the merger in 2023, these royalty streams were recognized on the balance sheet at an estimated fair value of $14.2 million (^[6]) (^[6]). Subsequent revaluation of this liability brought it down to ~$6.97 million as of Dec 2023 and then up to $9.21 million as of Dec 2024 (reflecting updated sales forecasts and a lower discount rate) (^[6]). In other words, Catheter Precision has a significant long-term payable to related parties that will be satisfied through a percentage of product sales over time. If sales remain low, the actual cash outflow each year is small (and the liability may be marked down); but if sales ramp up substantially, a portion of that revenue will effectively go to these royalty payees, reducing the company’s gross margins and cash flows. Investors should note that this $9.2 million obligation is non-debt and contingent on sales, but it functions like a form of off-balance sheet leverage — a reminder that even future “success” comes with a cost attached for Catheter Precision.

Liquidity & coverage: At the end of 2024, Catheter Precision reported $27.7 million in total assets and $11.8 million in shareholders’ equity, indicating some balance sheet “runway” for its growth plans (^[7]). However, a large portion of those assets was intangible (e.g. technology value) rather than cash. By March 2025, the company disclosed it had only $0.79 million in cash on hand, which was not nearly enough to fund operations through the end of 2025 (^[6]). This raises substantial doubt about the company’s ability to continue as a going concern without additional financing (^[6]). Indeed, management acknowledged it will likely need to raise more cash via debt or (more likely) equity issuance to keep the business running (^[6]) (^[6]). In May 2025 the company secured a small $1.5 million funding infusion (presumably through private investment or its at-the-market equity program) (^[9]), but ongoing cash burn means further capital raises are an ongoing necessity. In summary, Catheter Precision’s debt obligations are relatively low in absolute dollars, but its coverage of fixed charges is also very poor – without new financing, current cash resources and revenue are insufficient to cover even another year of operations (^[6]). Investors should brace for continued dilution or borrowing until (and unless) the company can substantially increase its sales.

Valuation and Shareholder Value

Valuing a nano-cap, pre-profitability company like Catheter Precision is challenging with standard metrics. The stock currently trades at a fraction of its book value, reflecting investors’ skepticism about the company’s ability to monetize its assets. As of early 2025, Catheter Precision’s market capitalization was roughly $3–4 million (^[7]), versus a book equity of $11.8 million at December 2024 (^[7]). In other words, the market was valuing the entire company at only about 25–35% of the net assets on the balance sheet, a steep discount that implies many of those assets (such as its technology IP) may be overvalued or will not generate sufficient returns. This low Price-to-Book (P/B ~0.3–0.4) is often seen in microcaps that are burning cash – the market anticipates further losses and possibly future writedowns or dilution that erode current equity. By contrast, established profitable medtech companies typically trade well above book value. The deep discount here is a cautionary signal.

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Traditional earnings-based valuation metrics are not meaningful for VTAK at present. The company’s earnings are negative (no P/E ratio can be computed), and even on a forward-looking basis, profitability is not expected in the near term. A more relevant gauge is Price-to-Sales: based on 2024 sales of $0.42 million, the stock was trading around 7–8× trailing revenue. This multiple may sound high, but with such a tiny revenue base it says little – if sales double or triple (as the company hopes) while the market cap remains depressed, the P/S could quickly drop. For instance, using the annualized Q3 2025 run-rate (about $0.9 million), the stock was nearer to 4–5× forward sales. Both figures are actually modest for a medical technology company with the potential for high growth; the issue is uncertainty about whether growth will materialize.

Another lens is enterprise value. Catheter Precision’s enterprise value (market cap plus debt, minus cash) is only on the order of ~$5–6 million (adding its ~$1.7 million debt and subtracting cash) (^[6]), which is extremely low by any absolute standard. This suggests the market assigns very little value to the company’s technology pipeline and expects that any future revenue will come at the cost of heavy dilution or liabilities. By comparison, larger electrophysiology device peers (with established sales) trade at significantly higher revenue multiples – but Catheter Precision must prove it can convert its promising products into a sustainable business.

It’s also worth noting the capital structure complexity that can affect shareholder value. The company has many warrants and possibly preferred shares from past financings. In 2023 and 2024, Catheter Precision had to incentivize warrant holders to exercise by adjusting terms and issuing new series of warrants – an emergency measure to raise equity capital that led to “deemed dividends” (non-cash charges) of $0.8 million and $5.2 million, respectively (^[6]) (^[6]). This kind of financial maneuver increases the share count or warrant overhang, diluting existing shareholders. In fact, the number of common shares outstanding was 8.0 million at the end of 2024 (^[2]), but the effective fully diluted share count is higher when considering all warrants and convertible securities. The company’s insider ownership is very high (over 70% of shares held by insiders, according to some reports), which can mean a tight float but also means when new shares are issued, outside investors bear disproportionate dilution (^[7]).

Finally, market trading factors highlight how speculative VTAK’s valuation is. The stock price has been extremely volatile, and the company has struggled to stay in compliance with exchange listing requirements. In mid-2024, Catheter Precision implemented a 1-for-10 reverse stock split to boost its per-share price after it had fallen into penny-stock territory (^[10]). (Prior to the split, it’s implied the share count was about ten times higher, and the price proportionally lower.) Even after the reverse split, the market cap remains very small and the stock can swing wildly on little news – for example, in June 2025 the share price spiked over 150% in a single day on unusually high volume, prompting the company to announce it was “unaware of any specific reason” for the activity (^[9]). Such volatility and low liquidity can make VTAK a risky holding even aside from fundamentals, as price movements may not reflect intrinsic value.

Key Risks and Red Flags

Investing in Catheter Precision entails substantial risks, characteristic of a microcap medical device venture. Below we outline the most salient risk factors and red flags:

– Going Concern and Dilution Risk: The company’s auditors and management have raised alarms about its ability to continue as a going concern without additional financing (^[6]). As noted, Catheter Precision’s cash on hand is insufficient for even one year of operations (^[6]), and the business is not yet cash-generative. This means the company will almost certainly need to issue more equity (or debt) to fund itself. Frequent capital raises will dilute existing shareholders and could be done at very unfavorable terms given the low share price. The heavy use of warrant sweeteners and insider loans in the past year underscores this risk (^[6]) (^[6]). Investors should expect ongoing dilution until the company achieves substantial revenue growth.

– Exchange Listing and Share Price Volatility: Catheter Precision’s stock price and market cap are precariously low. The NYSE American exchange has minimum listing standards – for example, companies typically must maintain sufficient shareholders’ equity and a share price above a certain threshold (often ~$1) or face delisting. VTAK already had to perform a 1:10 reverse split in 2024 to bolster its price (^[10]). If the stock price declines again or equity falls below required levels, the company could receive a non-compliance warning. Delisting would move the stock to OTC markets and likely further reduce liquidity. Even if it remains listed, the tiny float and speculative nature of the stock lead to extreme volatility. This volatility is a double-edged sword: while there may be sudden spikes (e.g. unexplained surges like the June 2025 jump) it also means the stock can crash on any negative development. In short, investors face the risk of significant price swings and potential loss of liquidity.

– Continued Losses and Uncertain Path to Profitability: Catheter Precision has a history of losses and expects to incur losses for the foreseeable future (^[6]). Its net loss in 2024 was $16.6 million and even with improving revenue, 2025 is on track for multi-million losses as well (^[7]). There is no clear timeline for breakeven. The company’s cost base (for R&D, sales, and admin) vastly exceeds its current revenues, and while management has been trimming some expenses, substantial ongoing investment is needed to drive adoption. This raises the possibility that Catheter Precision may never achieve profitability if it cannot rapidly scale up sales or if its expenses remain high (^[6]). Investors are essentially betting that revenue will ramp up exponentially in coming years – a prospect that is far from guaranteed in the conservative healthcare market.

– Product Adoption and Market Competition: The ultimate success of Catheter Precision hinges on hospitals and electrophysiologists embracing its products. Both VIVO and LockeT represent new approaches that require changing ingrained clinical workflows. Adoption risk is high. Early feedback (800+ VIVO procedures by 2022, and dozens of sites testing LockeT in 2024) is encouraging, but converting evaluations into routine usage is a slow process (^[7]). Moreover, the company faces formidable competition from much larger players in the cardiovascular device space. For example, LockeT’s function of vascular closure competes with well-established products like Abbott’s Perclose and Terumo’s AngioSeal that are widely trusted by physicians (^[3]). These competitors have far greater resources, salesforces, and brand recognition. Similarly, in cardiac mapping, companies like Johnson & Johnson (Biosense Webster) and Abbott dominate invasive electrophysiology mapping, and other startups are exploring noninvasive mapping. Catheter Precision will have to convince physicians that its tools are not only effective but also worth the learning curve and expense, despite incumbent solutions – a challenging task for a small firm. Failure to gain significant market traction would leave the company’s revenue stuck at trivial levels, undermining the entire investment thesis.

– Financial Reporting and Internal Controls: Investors should note that Catheter Precision had some red flags in financial reporting following the merger. The company was delayed in filing its 2023 quarterly reports (Q2 and Q3 2023 results were only filed in December 2023) , and it identified material weaknesses in internal controls in that period. While those filings are now up to date, the initial delays and control issues highlight execution challenges on the administrative side of being a public company. Any recurrence of reporting problems or an inability to produce timely audited financials could hurt investor confidence or even risk compliance with SEC requirements.

– Insider Influence and Related-Party Transactions: Catheter Precision’s management and insiders have a very large stake (over 70% insider ownership) and significant influence over the company (^[7]). On one hand this aligns management’s interests with shareholders – the CEO is literally invested in the outcome, having loaned money to the company and likely being a major shareholder. On the other hand, it raises governance concerns: for instance, the royalty agreements mean related parties (potentially including founders or executives) stand to directly profit from product sales via royalties (^[6]). This could create conflicts of interest in some situations (e.g. prioritizing revenue over profitability, since royalties would be paid from gross sales). Additionally, future financing deals might involve insiders or select investors in ways that dilute minority shareholders. Investors should be mindful of the control that insiders wield and the potential for related-party dealings that may not always favor common stockholders.

– Macro and Regulatory Risks: As a medical device maker, Catheter Precision is subject to regulatory oversight (FDA and international regulators) and must maintain quality compliance. Any product issues or recalls could derail its progress. The company’s growth strategy includes international expansion – for example, entering European markets now that LockeT has a CE Mark (^[7]) – which exposes it to global risks. These can range from geopolitical events (the company itself warned that conflicts like the war in Israel/Gaza could disrupt its Middle East distribution plans) (^[10]), to supply chain delays, to foreign regulatory hurdles. Furthermore, if hospitals do not get reimbursement for using VIVO or LockeT, they may be reluctant to adopt them widely (^[6]). All these external factors add uncertainty to the company’s outlook.

In sum, Catheter Precision exhibits multiple red flags: negative cash flow with going-concern warnings, a need for constant fundraising, tiny scale in a competitive industry, extreme stock volatility, and complex insider arrangements. This doesn’t mean the company cannot succeed – but investors should calibrate their risk tolerance appropriately. VTAK is a high-risk, potential high-reward situation contingent on execution of a very challenging commercialization plan.

Open Questions and Outlook

Catheter Precision’s recent Q3 results showed glimmers of progress, but they also raise important open questions about the company’s future:

– Can revenue growth accelerate sufficiently to close the gap with expenses? The 135% YoY jump in Q3 sales is impressive (^[8]), yet in dollar terms quarterly revenue is still only a few hundred thousand. Even if triple-digit growth continues, the company would only reach low-single-digit millions in annual revenue in a couple of years. Is that enough to ever reach breakeven when annual operating costs are ~$17 million (^[7])? Management cites 2024 as a rebuilding year with a new sales team and believes 2025 can show much better sales traction (^[7]). The coming quarters need to demonstrate that the early interest from 20+ hospitals can convert into steady, repeat orders – and that revenue can compound without equally rapid expense growth. This is the crux of the investment thesis going forward.

– Will the recent catalysts translate into commercial success? There are several potential tailwinds: the CE Mark opens up Europe for LockeT, which management calls a significant catalyst for 2025 (^[7]). Additionally, positive clinical data on VIVO and LockeT have been published in major forums (^[2]) (^[2]), lending scientific credibility. However, the impact of these developments on sales is uncertain. European market entry requires establishing distribution and competing with entrenched players – will European hospitals be quick to adopt LockeT once sales begin (planned in Q3 2025) (^[2])? Similarly, will the published studies drive more U.S. centers to budget for a VIVO system? Investors will be watching upcoming quarters to see if there’s an inflection in demand attributable to these catalysts, or if uptake remains incremental.

– How will Catheter Precision fund itself in the next 12–24 months? With only ~$0.8 million cash in spring 2025 and ongoing losses (^[6]), the company’s runway is very short. Management did secure a $1.5 million cash injection in May 2025 (^[9]) and has an open at-the-market equity facility (^[9]), but raising meaningful capital at the current depressed stock price is dilutive. New strategic partnerships or out-licensing deals could be alternative funding sources – yet no such arrangements have been announced. Another possibility is that insiders like the CEO continue to bridge the company with loans (as in 2024) (^[6]), but that too has limits and simply kicks the can down the road. This raises the question: Will Catheter Precision attempt a larger financing or restructuring in the near future? For example, a significant equity raise (perhaps post-reverse-split to increase the share price), or even a merger with a cash-rich SPAC or a larger company. The answer is unclear, but something must happen, as the status quo cash burn is unsustainable.

– What is the end-game for investors? Given the tiny market cap and huge needs for capital, some investors wonder if Catheter Precision might ultimately become a takeover target by a bigger medtech company interested in its technology. The electrophysiology space has seen acquisitions in the past (often larger companies buying innovative cardiac mapping or device startups). If VIVO or LockeT demonstrate clear clinical value, might a strategic acquirer step in before Catheter Precision runs out of money? Alternatively, can the company reach a self-sustaining level and grow organically as a niche player? Right now, the market is assigning almost no value to the future, which could mean a significant upside if the company defies the odds – but also reflects the high probability of failure or severe dilution. This tug-of-war will likely continue to play out in the stock’s volatility.

– How will the royalty obligations affect profitability if sales do ramp up? A unique aspect of Catheter Precision is the royalties payable to related parties on LockeT sales. Investors should keep an eye on this: if LockeT becomes a commercial success, say generating several million dollars in revenue, a portion of that will effectively be siphoned off as royalty expense (the liability was ~$9.2 million present value at end of 2024) (^[6]). This could act as a drag on gross margins. Will the company be inclined to buy out these royalty agreements to improve future profitability, and could that require another large cash outlay or stock issuance? It’s an open question and a reminder that scaling revenue alone isn’t the whole story – the quality of that revenue (net of obligations) matters too.

In conclusion, Catheter Precision’s Q3 results show early signs of commercial progress – the kind of surprise growth spurt that gives shareholders hope – but the company’s financial fragility tempers any enthusiasm. The coming quarters will be pivotal. Investors should watch for continued revenue growth (especially any acceleration in VIVO/LockeT adoption), moves to strengthen the balance sheet, and indications that management can navigate the myriad risks identified above. Until then, VTAK remains a highly speculative stock. The Q3 jump in sales could indeed surprise you* – yet whether it marks the start of a sustainable trend or just a blip on the path to further challenges is the big question that only time (and execution) will answer.

Sources

For informational purposes only; not investment advice.