Private company
Semler Scientific, Inc.
In its 2025 annual report the company says: “We are a company developing and marketing technology products and services that assist our customers in evaluating and treating chronic diseases. We also invest in bitcoin and have adopted bitcoin as our primary treasury reserve asset. Our healthcare technology solutions business is our predominant operational focus, providing cash flows and enabling us to pursue our bitcoin strategy.”4 It is headquartered in Campbell, United States.2
Last updated Oct 21, 2026.
Overview
- IndustryElectromedical & Electrotherapeutic Apparatus2
- HeadquartersCampbell, United States2
- Incorporated inDE3
- Business address51 E Campbell Ave, Suite 107-D, Campbell, Ca 950083
- Filer categoryNon-accelerated filer, Smaller reporting company3
- Legal formCorporation2
- LEI549300ZHL16S29QTW4852
- StatusActive2
- LEI statusLapsed (not renewed)2
- Registered addressC/O CORPORATION SERVICE COMPANY, 19808 Wilmington, United States2
- Registered withDivision of Corporations, Department of State, 54040392
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We are a company developing and marketing technology products and services that assist our customers in evaluating and treating chronic diseases. Our patented and FDA cleared product, QuantaFlo, measures arterial blood flow in the extremities to aid in the diagnosis of PAD. We also invest in bitcoin and have adopted bitcoin as our primary treasury reserve asset. As an operating business, we use cash flows as well as proceeds from equity and debt financings to accumulate bitcoin. Our healthcare technology solutions business is our predominant operational focus, providing cash flows and enabling us to pursue our bitcoin strategy.4 From its latest annual report
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Key numbers, fiscal 2024
Where the money goes
Where each dollar of revenue went, fiscal 2024
- Cost of revenue8¢$4.8M
- Research and development8¢$4.8M
- Income tax12¢$7.0M
- Profit71¢$40.9M
Out of $56.3M in revenue.5
Where each dollar of operating cash went, fiscal 2024
- Capital spending0¢$51.0K
- Kept or used elsewhere100¢$24.4M
Out of $24.4M of cash from operations.5
Financial statements
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|
| Revenue | $21.5M6 | $32.8M7 | $38.6M8 | $53.0M9 | $56.7M10 | $68.2M10 | $56.3M5 |
| Cost of revenue | $2.7M6 | $3.7M7 | $3.4M8 | $6.1M9 | $4.3M10 | $7.0M5 | $4.8M5 |
| Research and development | $4.4M10 | $5.8M5 | $4.8M5 | ||||
| Operating expenses | $33.6M9 | $39.5M10 | $45.9M5 | $35.4M5 | |||
| Operating income | $5.3M6 | $10.7M7 | $16.0M8 | $19.4M9 | $17.2M10 | $22.3M5 | $20.9M5 |
| Interest | $59.0K14 | ||||||
| Income before tax | $19.5M9 | $17.7M10 | $24.1M5 | $47.9M5 | |||
| Income tax | $26.0K6 | -$4.4M7 | $2.5M8 | $2.2M9 | $3.4M10 | $3.5M5 | $7.0M5 |
| Net income | $5.0M6 | $15.1M7 | $14.0M8 | $17.2M9 | $14.3M10 | $20.6M5 | $40.9M5 |
| Earnings per share | $0.826 | $2.347 | $2.138 | $2.569 | $2.1310 | $3.065 | $5.665 |
| Earnings per share (diluted) | $0.666 | $1.887 | $1.748 | $2.129 | $1.7910 | $2.635 | $5.135 |
| Shares (weighted, basic) | 6.7M shares9 | 6.7M shares10 | 6.7M shares5 | 7.2M shares5 | |||
| Shares (weighted, diluted) | 8.1M shares9 | 8.0M shares10 | 7.8M shares5 | 8.0M shares5 |
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|
| Cash | $3.3M7 | $7.7M7 | $22.1M8 | $37.3M9 | $23.0M10 | $57.2M5 | $8.8M5 |
| Receivables | $3.6M9 | $3.9M5 | $6.1M5 | $4.4M5 | |||
| Inventory | $550.0K9 | $469.0K10 | $445.0K5 | $358.0K5 | |||
| Current assets | $6.2M6 | $11.4M7 | $26.6M8 | $45.5M9 | $48.9M10 | $65.9M5 | $22.7M5 |
| Total assets | $7.7M6 | $18.3M7 | $34.6M8 | $50.7M9 | $62.7M10 | $78.1M5 | $239.8M5 |
| Accounts payable | $443.0K9 | $835.0K10 | $402.0K5 | $140.0K5 | |||
| Current liabilities | $3.5M6 | $5.2M7 | $4.5M8 | $4.9M9 | $6.9M10 | $6.2M5 | $6.3M5 |
| Long-term debt | $014 | ||||||
| Long-term liabilities | $245.0K9 | $160.0K10 | $70.0K5 | $2.8M5 | |||
| Retained earnings | $24.9M9 | $39.2M10 | $59.8M5 | $100.7M5 | |||
| Shareholders’ equity | $4.2M7 | $13.1M8 | $29.8M9 | $45.5M10 | $55.7M5 | $71.8M5 | $230.8M5 |
| Shares outstanding | 6.3M shares6 | 6.5M shares7 | 6.7M shares8 | 6.8M shares9 | 6.7M shares10 | 6.9M shares5 | 9.6M shares5 |
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|
| Cash from operations | $4.7M6 | $12.7M7 | $15.1M8 | $16.1M9 | $17.5M10 | $21.3M5 | $24.4M5 |
| Depreciation and amortization | $628.0K9 | $589.0K10 | $599.0K5 | $579.0K5 | |||
| Stock-based compensation | $749.0K9 | $741.0K10 | $944.0K5 | $862.0K5 | |||
| Capital spending | $138.0K6 | $174.0K7 | $149.0K8 | $318.0K9 | $476.0K10 | $345.0K5 | $51.0K5 |
| Free cash flow | $4.6M | $12.6M | $15.0M | $15.7M | $17.0M | $21.0M | $24.4M |
| Cash from investing | -$825.0K9 | -$26.8M10 | $18.4M5 | -$190.0M5 | |||
| Share buybacks | $5.0M10 | ||||||
| Cash from financing | $13.0K9 | -$4.9M10 | -$5.4M5 | $117.2M5 |
Corporate structure
Semler Scientific, Inc. is part of a group headed by Strive, Inc.. 7 entities, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.
Major holders of Semler Scientific, Inc.
- Weiss Asset Management LP Filed SCHEDULE 13G/A on Semler Scientific, Inc., latest May 11, 2026 (2 filings since Feb 11, 2026)
- Eric Semler Filed SCHEDULE 13D/A on Semler Scientific, Inc., latest Jan 16, 2026 (3 filings since Apr 20, 2023)
- William H.C. Chang & Diana Shon Chang TTEE Chang Family Trust U/A DTD 10/23/2006 Filed SCHEDULE 13D/A on Semler Scientific, Inc., latest Jan 16, 2026 (4 filings since Oct 25, 2022)
- Ridgeback Capital Investments L.P. Filed SCHEDULE 13G/A on Semler Scientific, Inc., latest Nov 14, 2025 (2 filings since Jul 16, 2025)
- Capital International Investors Filed SCHEDULE 13G/A on Semler Scientific, Inc., latest Nov 13, 2025 (2 filings since Feb 14, 2025)
- Capital Ventures International Filed SCHEDULE 13G/A on Semler Scientific, Inc., latest Nov 13, 2025 (5 filings since Nov 26, 2024)
- BlackRock Filed SCHEDULE 13G on Semler Scientific, Inc., latest Oct 17, 2025 (6 filings since Oct 21, 2024)
- Citadel Securities GP LLC Filed SCHEDULE 13G on Semler Scientific, Inc., latest Aug 14, 2025
- Morgan Stanley Filed SCHEDULE 13G on Semler Scientific, Inc., latest Aug 7, 2025
- Douglas Murphy-Chutorian Filed SC 13D/A on Semler Scientific, Inc., latest Dec 12, 2024 (3 filings since May 17, 2023)
- Topline Capital Management, LLC Filed SC 13G/A on Semler Scientific, Inc., latest Feb 12, 2024 (2 filings since Feb 15, 2023)
- AltraVue Capital, LLC Filed SC 13G/A on Semler Scientific, Inc., latest Jan 26, 2024 (3 filings since Oct 6, 2022)
- Strive, Inc. Carson City, Nevada, United States
- Semler Scientific, Inc. Campbell, California, United States
- CardioVanta, Inc. Subsidiary · Delaware, United States
- Clinivanta, LLC Subsidiary · Delaware, United States
- Strive Asset Management, LLC Subsidiary · Ohio, United States
- Strive Enterprises, Inc. Subsidiary · Ohio, United States
- Strive Operating, LLC Subsidiary · Ohio, United States
Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What Semler Scientific, Inc. reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
Property and equipment
| Item | Latest | A year before | Change |
|---|---|---|---|
| Operating-lease assets (leased space) | $65.0K5 Dec 31, 2024 | $150.0K5 Dec 31, 2023 | −56.7% |
Investments
| Item | Latest | A year before | Change |
|---|---|---|---|
| Cash and cash equivalents | $8.8M5 Dec 31, 2024 | $57.2M5 Dec 31, 2023 | −84.6% |
| Long-term investments | $512.0K5 Dec 31, 2024 | $512.0K5 Dec 31, 2023 | 0% |
Inventory
Properties, in its own words
Because we outsource our manufacturing to “turn-key” manufacturers and have a geographically dispersed sales force and distributor arrangement, we have minimal needs for office space to conduct our day-to-day business operations. Our headquarters are located in Santa Clara, CA, where we lease an operations fulfillment space that also serves as our corporate headquarters address.
Item 2 of the 10-K filed Feb 28, 2025.4
Leadership
Who has led Semler Scientific, Inc., and when. Pick a name to see everywhere that person has worked.
Chief executive
President
Chief financial officer
Chief operating officer
- Chief executive officerDouglas Murphy-Chutorian Feb 20, 2014 to now15
- PresidentRobert McRae Nov 12, 2014 to Jul 22, 201516
- Chief financial officerDouglas Murphy-Chutorian Nov 18, 2025 to now17
- Chief financial officerRenae Cormier Jul 13, 2023 to Nov 18, 202518
- Chief operating officerRobert McRae Feb 20, 2014 to Jul 22, 201519
Board members and other officers (16)
- Senior VP, Finance and Acct.Andrew B. Weinstein Oct 5, 2018 to Oct 5, 201820
- Vice President of FinanceDaniel E. Conger Feb 20, 2014 to May 12, 202021
- Board memberNatalie Brunell May 22, 2025 to now22
- Board memberEric Semler Apr 20, 2023 to now23
- Board memberDaniel S. Messina Aug 17, 2020 to now24
- Board memberCindy Moon Nov 12, 2020 to Feb 3, 202325
- Board memberDouglas Murphy-Chutorian Feb 20, 2014 to now15
- Board memberElliot A. Sainer Feb 20, 2014 to Feb 27, 201426
- Board memberGreg Shaw Garfield Feb 20, 2014 to Feb 22, 201627
- Board memberHerbert J. Semler Feb 20, 2014 to Sep 15, 201728
- Board memberShirley L. Semler Feb 20, 2014 to Sep 15, 201729
- Board memberWilliam H. Chang Feb 20, 2014 to now30
- Board memberBruce Barclay May 6, 2014 to Feb 22, 201631
- Board memberWayne T. Pan May 14, 2014 to Feb 3, 202332
- Board memberArthur N. Leibowitz Jun 26, 2014 to Feb 3, 202333
- Board memberAidan Matthew Collins Jul 8, 2014 to Feb 22, 201634
Timeline
- Jan 16, 20268-K Entered a material agreement; Ended a material agreement; Completed an acquisition or sale35
- Jan 13, 20268-K Shareholder vote36
- Dec 12, 20258-K Exit or restructuring costs; Other events37
- Nov 14, 20258-K Other events38
- Nov 12, 20258-K Regulation FD disclosure; Other events39
- Nov 10, 20258-K Other events40
- Nov 6, 20258-K Other events41
- Oct 17, 20258-K Executive or director change42
- Oct 3, 20258-K Results of operations; Regulation FD disclosure; Other events43
- Sep 26, 20258-K Entered a material agreement; New debt or obligation; Other events44
- Sep 24, 20258-K Other events45
- Sep 22, 20258-K Other events46
- Feb 20, 2014New chief executive Douglas Murphy-Chutorian becomes CEO15
- Sep 24, 2013Founded Semler Scientific, Inc. is founded2
Calendar
When it reported results
- Oct 3, 2025Reported quarterly or annual results43
- Aug 4, 2025Reported quarterly or annual results47
- Jul 17, 2025Reported quarterly or annual results48
- Jul 7, 2025Reported quarterly or annual results49
- May 13, 2025Reported quarterly or annual results50
- Apr 15, 2025Reported quarterly or annual results51
- Feb 18, 2025Reported quarterly or annual results52
- Jan 23, 2025Reported quarterly or annual results53
Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar
Filings
291 filings to the SEC since October 2021: 4 annual reports, 13 quarterly reports, 74 major events, 78 insider forms, 37 large holders, 85 other. The latest 20:
- May 11, 2026SCHEDULE 13G/A EDGAR
- Feb 11, 2026SCHEDULE 13G EDGAR
- Jan 26, 202615-12G EDGAR
- Jan 21, 2026EFFECT EDGAR
- Jan 21, 2026EFFECT EDGAR
- Jan 16, 20268-K EDGAR
- Jan 16, 20264 OWNERSHIP DOCUMENT EDGAR
- Jan 16, 20264 OWNERSHIP DOCUMENT EDGAR
- Jan 16, 20264 OWNERSHIP DOCUMENT EDGAR
- Jan 16, 20264 OWNERSHIP DOCUMENT EDGAR
- Jan 16, 20264 OWNERSHIP DOCUMENT EDGAR
- Jan 16, 2026SCHEDULE 13D/A EDGAR
- Jan 16, 2026SCHEDULE 13D/A EDGAR
- Jan 16, 2026S-8 POS EDGAR
- Jan 16, 2026S-8 POS EDGAR
- Jan 16, 2026S-8 POS EDGAR
- Jan 16, 2026S-8 POS EDGAR
- Jan 16, 2026S-8 POS EDGAR
- Jan 16, 2026S-8 POS EDGAR
- Jan 16, 2026POS AM EDGAR
The 291 filings since October 2021 can be filtered by form type and year here when JavaScript is on.
Every filing from the last five years, summarized. The full record is on SEC EDGAR.
Insider trades
24 open-market trades by officers, directors and large owners since October 2021: 4 buys and 20 sales. Grants, option exercises and gifts are left out.
| Date | Who | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Nov 17, 2025 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 70,406 | $20.21 | $1.4M | Form 4 |
| Aug 25, 2025 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 28,604 | $30.54 | $873.6K | Form 4 |
| Dec 11, 2024 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 25,000 | $62.24 | $1.6M | Form 4 |
| Dec 10, 2024 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 75,000 | $60.12 | $4.5M | Form 4 |
| Nov 7, 2024 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 50,000 | $37.93 | $1.9M | Form 4 |
| Nov 7, 2024 | SEMLER ERICDirector | Buy | 50,000 | $37.93 | $1.9M | Form 4 |
| Aug 29, 2024 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 10,101 | $28.34 | $286.3K | Form 4 |
| Aug 29, 2024 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 10,000 | $28.35 | $283.5K | Form 4 |
| Aug 28, 2024 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 780 | $28.32 | $22.1K | Form 4 |
| Aug 28, 2024 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 780 | $28.32 | $22.1K | Form 4 |
| Sep 13, 2023 | SEMLER ERICDirector | Buy | 26,868 | $28.11 | $755.3K | Form 4 |
| Sep 12, 2023 | SEMLER ERICDirector | Buy | 25,903 | $27.70 | $717.5K | Form 4 |
| Sep 11, 2023 | SEMLER ERICDirector | Buy | 25,000 | $26.98 | $674.5K | Form 4 |
| Feb 28, 2022 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 2,000 | $72.64 | $145.3K | Form 4 |
| Feb 22, 2022 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 2,000 | $70.21 | $140.4K | Form 4 |
| Feb 15, 2022 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 2,000 | $76.04 | $152.1K | Form 4 |
| Feb 7, 2022 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 2,000 | $78.72 | $157.4K | Form 4 |
| Feb 1, 2022 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 2,000 | $76.53 | $153.1K | Form 4 |
| Jan 24, 2022 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 2,000 | $72.35 | $144.7K | Form 4 |
| Jan 18, 2022 | Murphy-Chutorian DouglasCEO, interim CFO and Director | Sale | 2,000 | $76.68 | $153.4K | Form 4 |
All 24 trades can be filtered by person here when JavaScript is on.
From Forms 4 filed with the SEC.
Major holders
Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.
- Weiss Asset Management LPSCHEDULE 13G/A, 2 filings Feb 11, 2026 to May 11, 202654
- Eric SemlerSCHEDULE 13D/A, 3 filings Apr 20, 2023 to Jan 16, 202655
- William H.C. Chang & Diana Shon Chang TTEE Chang Family Trust U/A DTD 10/23/2006SCHEDULE 13D/A, 4 filings Oct 25, 2022 to Jan 16, 202656
- Ridgeback Capital Investments L.P.SCHEDULE 13G/A, 2 filings Jul 16, 2025 to Nov 14, 202557
- Capital International InvestorsSCHEDULE 13G/A, 2 filings Feb 14, 2025 to Nov 13, 202558
- Capital Ventures InternationalSCHEDULE 13G/A, 5 filings Nov 26, 2024 to Nov 13, 202559
- BlackRockSCHEDULE 13G, 6 filings Oct 21, 2024 to Oct 17, 202560
- Citadel Securities GP LLCSCHEDULE 13G, 1 filing Aug 14, 202561
- Morgan StanleySCHEDULE 13G, 1 filing Aug 7, 202562
- Douglas Murphy-ChutorianSC 13D/A, 3 filings May 17, 2023 to Dec 12, 202463
- Topline Capital Management, LLCSC 13G/A, 2 filings Feb 15, 2023 to Feb 12, 202464
- AltraVue Capital, LLCSC 13G/A, 3 filings Oct 6, 2022 to Jan 26, 202465
- Park West Asset Management LLCSC 13G/A, 2 filings Feb 14, 2022 to Feb 14, 202366
- Nantahala Capital Management, LLCSC 13G/A, 1 filing Feb 14, 202267
Executive pay
What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.
| Year | Executive | Age | Salary | Total pay |
|---|---|---|---|---|
| 2024 | Douglas Murphy-Chutorian, M.D. Director and chief executive officer | 71 | $450.0K | $1.1M68 |
| 2024 | Renae Cormier Chief financial officer | 53 | $374.4K | $730.9K68 |
| 2023 | Douglas Murphy-Chutorian, M.D. Director and chief executive officer | 71 | $488.5K | $928.9K68 |
| 2023 | Renae Cormier Chief financial officer | 53 | $273.7K | $524.9K68 |
SEC filer profile
How Semler Scientific, Inc. is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.
- Name on EDGARSemler Scientific, Inc.1
- CIK0001554859
- Employer ID (EIN)26-13673934
- Filer statusNon-accelerated filer not an emerging growth company; a smaller reporting company; not a shell company4
- Incorporated inDelaware4
- Fiscal year endsDecember 311
- Industry code (SIC)3845 Electromedical & Electrotherapeutic Apparatus1
- SEC reviewing officeOffice of Industrial Applications and Services, Division of Corporation Finance1
- Business address51 E Campbell Ave, Suite 107-D, Campbell, CA 950081
- Phone87777442111
- Shares outstanding15,159,895 as of Nov 7, 202513
- Public float$164.9M as of Jun 30, 20244
- AuditorBDO USA, P.C., New York, NY PCAOB ID 243; no auditor attestation of internal control over financial reporting4
- On EDGAR sinceOct 10, 20131
- Filings871 in all: 425 (250), 4 (222), 8-K (136), 10-Q (36), SC 13D/A (25), 3 (23), SC 13G/A (16), 10-K (11)1
All 50 form types
DEF 14A (11), SC 13G (11), CORRESP (10), 4/A (9), SCHEDULE 13G (8), SCHEDULE 13G/A (8), 144 (7), DEFA14A (6), S-8 (6), S-8 POS (6), UPLOAD (6), ARS (5), EFFECT (5), S-1/A (5), FWP (4), SC 13D (4), 8-K/A (3), PRE 14A (3), S-3/A (3), 144/A (2), 25-NSE (2), 424B5 (2), 5 (2), 8-A12B (2), POS AM (2), S-1 (2), S-3 (2), SCHEDULE 13D/A (2), 10-K/A (1), 10-Q/A (1), 15-12G (1), 3/A (1), 424B4 (1), 5/A (1), CERT (1), CERTNAS (1), D (1), DEF 14C (1), DEFM14A (1), DEFR14A (1), DRS (1), RW (1)
- Latest filingsAnnual report (10-K) Feb 28, 2025
Quarterly report (10-Q) Nov 12, 2025
Proxy statement (DEF 14A) Jul 17, 2025
Latest 8-K (8-K) Jan 16, 2026
Securities registered for trading
| Class | Symbol | Exchange |
|---|---|---|
| Common Stock, $0.001 par value | SMLR | The Nasdaq Stock Market LLC |
From the cover page of the 10-K filed Feb 28, 2025 (Section 12(b) of the Exchange Act).4
Risk factors and legal proceedings
The risks Semler Scientific, Inc. names in Item 1A of its 10-K filed Feb 28, 2025: 73 risks under these headings, as written.4
- Risks Related to Our Business
- If we do not successfully implement our healthcare solutions strategy, our business and results of operations will be adversely affected.
- We predominantly market only one FDA-cleared vascular testing product; it may not achieve broad market acceptance or be commercially successful. We may also fail to generate meaningful benefit from our recent investments in other companies developing complementary products or distribution agreements for complementary products.
- Physicians and other customers may not widely adopt our products unless they determine, based on experience, long-term clinical data and published peer reviewed journal articles, that the use of our products provides a safe and effective alternative to other existing ABI devices.
- If healthcare providers are unable to obtain adequate coverage and reimbursement either for procedures performed using our product or patient care incorporating the use of our product, our product might have difficulty gaining widespread acceptance.
- QuantaFlo is not specifically approved for reimbursement under any third-party payor codes; if third-party payors refuse to reimburse our customers for their use of our product, it could have a material adverse effect on our business.
- We rely heavily upon the talents of a small number of key personnel, the loss of whom could severely damage our business.
- We rely on a small number of employees in our direct sales force and face challenges and risk in managing and maintaining our distribution network and the parties who make up that network.
- To adequately commercialize our products and any new products we add, we may need to increase our sales and marketing network, which will require us to hire, train, retain and supervise employees and other independent contractors.
- We do not require our customers to enter into long-term licenses or maintenance contracts for our products or services and may therefore lose customers on short notice.
- We are exposed to risk as a significant portion of our revenues and accounts receivables are with a limited number of customers.
- We rely on a small number of independent suppliers and facilities for the manufacturing of QuantaFlo. Any delay or disruption in the supply of the product or facility may negatively impact our operations.
The other 62 risks
- We will need to generate significant revenues to remain profitable.
- Our future financial performance will depend in part on the successful improvements and software updates to QuantaFlo on a cost-effective basis.
- One of our business strategies is developing or distributing additional products and service offerings that allow healthcare providers to deliver cost-effective wellness programs and receive increased compensation for their services. The development or distribution of new products and service offerings involves time and expense and we may never realize the benefits of this investment.
- We have used our cash resources to invest in other companies, and there is no guarantee that we will be repaid on maturity nor realize any other expected benefits from such investments, which could harm our business.
- Risks Related to Our Legal and Regulatory Environment
- The FDA may change its policies, adopt additional regulations, or revise existing regulations, in particular relating to the 510(k) clearance process.
- We may rely on third parties to support certain aspects of our clinical trials and regulatory processes. If these third parties do not successfully carry out their contractual duties or meet expected deadlines, we may not be able to obtain regulatory clearance or approval or commercialize our products, and our business could be substantially harmed.
- If we are found to have improperly promoted our products for off-label uses, we may become subject to significant fines and other liability.
- Although part of our business strategy is based on payment provisions enacted under government healthcare reform, we also face significant uncertainty in the industry regarding the implementation, transformation or repeal and replacement of the Health Care Reform Law.
- We are subject to various healthcare fraud and abuse laws and regulations, and at risk that DOJ will file a complaint or complaint in intervention in a civil False Claims Act lawsuit seeking damages for tests performed using our device, which would adversely affect our business. A civil suit by DOJ also exposes us to risk of other litigation.
- We have had material weaknesses in our internal control over financial reporting. Although we have remediated our prior material weaknesses, if we identify additional material weaknesses in the future, or if our former material weaknesses recur, it could have an adverse effect on our company.
- Risks Related to Our Intellectual Property
- Our success largely depends on our ability to obtain and protect the proprietary information on which we base our product.
- We may need to license intellectual property from third parties, and such licenses may not be available or may not be available on commercially reasonable terms.
- We may be subject to claims by third parties asserting that our employees or we have misappropriated their intellectual property, or claiming ownership of what we regard as our own intellectual property.
- If we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed.
- Risks Related to Our Bitcoin Treasury Strategy and Holdings
- Our bitcoin treasury strategy exposes us to various risks associated with bitcoin.
- Bitcoin is a highly volatile asset.
- Bitcoin does not pay interest or dividends.
- Our bitcoin holdings may significantly impact our financial results and the market price of our common stock.
- Our bitcoin treasury strategy has not been tested over an extended period of time or under different market conditions.
- We are subject to counterparty risks, including in particular risks relating to our custodians.
- The broader digital assets industry is subject to counterparty risks, which could adversely impact the adoption rate, price, and use of bitcoin.
- Changes in our ownership of bitcoin could have accounting, regulatory and other impacts.
- Changes in the accounting treatment of our bitcoin holdings could have significant accounting impacts, including increasing the volatility of our results.
- Bitcoin is a highly volatile asset, and fluctuations in the price of bitcoin are likely to influence our financial results and the market price of our common stock.
- Bitcoin and other digital assets are novel assets, and are subject to significant legal, commercial, regulatory and technical uncertainty.
- Our historical financial statements do not reflect the potential variability in earnings that we may experience in the future relating to our bitcoin holdings.
- The availability of spot bitcoin ETPs may adversely affect the market price of our common stock.
- Our bitcoin treasury strategy subjects us to enhanced regulatory oversight.
- Due to the currently unregulated nature and lack of transparency surrounding the operations of many bitcoin trading venues, bitcoin trading venues may experience greater fraud, security failures or regulatory or operational problems than trading venues for more established asset classes, which may result in a loss of confidence in bitcoin trading venues and adversely affect the value of our bitcoin.
- The concentration of our bitcoin holdings enhances the risks inherent in our bitcoin treasury strategy.
- The emergence or growth of other digital assets, including those with significant private or public sector backing, could have a negative impact on the price of bitcoin and adversely affect our financial condition and results of operations.
- Our bitcoin holdings are less liquid than our existing cash and cash equivalents and may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents.
- If we or our third-party service providers experience a security breach or cyberattack and unauthorized parties obtain access to our bitcoin, or if our private keys are lost or destroyed, or other similar circumstances or events occur, we may lose some or all of our bitcoin and our financial condition and results of operations could be materially adversely affected.
- We face risks relating to the custody of our bitcoin, including the loss or destruction of private keys required to access our bitcoin and cyberattacks or other data loss relating to our bitcoin.
- Regulatory change reclassifying bitcoin as a security could lead to our classification as an “investment company” under the 1940 Act and could adversely affect the market price of bitcoin and the market price of our common stock.
- We may be subject to regulatory developments related to crypto assets and crypto asset markets, which could adversely affect our business, financial condition, and results of operations.
- Our bitcoin treasury strategy exposes us to risk of non-performance by counterparties.
- Our custodially-held bitcoin may become part of the custodian’s insolvency estate if one or more of our custodians enters bankruptcy, receivership or similar insolvency proceedings.
- A temporary or permanent blockchain “fork” to bitcoin or other crypto assets could adversely affect our business.
- The due diligence procedures conducted by us and our liquidity provider to mitigate transaction risk may fail to prevent transactions with a sanctioned entity.
- Risks Related to Our Indebtedness
- Our indebtedness and liabilities could limit the cash flow available for our operations, expose us to risks that could adversely affect our business, financial condition and results of operations and impair our ability to satisfy our obligations under our debt instruments when they come due.
- We may not have the ability to raise the funds necessary to settle conversions of the notes in cash or to repurchase the notes upon a fundamental change, and our future debt may contain limitations on our ability to pay cash upon conversion or repurchase of the notes.
- Certain provisions in the indenture governing the notes may delay or prevent an otherwise beneficial takeover attempt of us.
- The conditional conversion feature of the notes, if triggered, may adversely affect our financial condition and operating results.
- Conversion of the notes may dilute the ownership interest of our stockholders or may otherwise depress the price of our common stock.
- The capped call transactions may affect the value of the notes and our common stock.
- We are subject to counterparty risk with respect to the capped call transactions.
- Risks Related to Our Common Stock
- Our executive officers, directors and significant stockholders, if they choose to act together, have the ability to substantially influence the outcome of all matters submitted to stockholders for approval.
- Provisions in our corporate charter documents and under Delaware law could make an acquisition of our company, which may be beneficial to our stockholders, more difficult and may prevent attempts by our stockholders to replace or remove our current management.
- Our amended and restated bylaws designate exclusive forums for the adjudication of certain disputes, which could limit our stockholders’ ability to bring claims in a judicial forum it finds favorable for disputes with us or our directors, officers, or employees.
- The price of our common stock has been and may continue to be volatile and fluctuate substantially, which could result in substantial losses for purchasers of our common stock.
- Because we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will be your sole source of gain.
- General Risk Factors
- Because we operate in an industry with significant product liability risk, and we may not be sufficiently insured against this risk, we may be subject to substantial claims against our product or services that we may provide.
- We may implement a product recall or voluntary market withdrawal or stop shipment of our product due to product defects or product enhancements and modifications, which would significantly increase our costs.
- If we fail to properly manage our operations, our business could suffer.
- An information security incident, including a cybersecurity breach, could have a negative impact on our business or reputation.
- Adverse developments affecting the financial services industry, such as actual events or concerns involving liquidity, defaults, or non-performance by financial institutions or transactional counterparties, could adversely affect our current and projected business operations and our financial condition and results of operations.
- Fluctuations in insurance cost and availability could adversely affect our profitability or our risk management profile.
- Disruptions at the FDA, the SEC and other government agencies caused by the change in presidential administration, funding shortages or potential funding shortages could hinder their ability to hire and retain key leadership and other personnel, prevent new products and services from being developed or commercialized in a timely manner, or otherwise prevent those agencies from performing normal business functions, which could negatively impact our business and our timelines.
- We operate in an intensely competitive and rapidly changing business environment, and there is a substantial risk our products or service offerings could become obsolete or uncompetitive.
- Changes in, or interpretations of, tax rules and regulations may adversely affect our effective tax rates.
- We are currently a “smaller reporting company,” and the reduced disclosure requirements applicable to such companies may make our common stock less attractive to investors.
Legal proceedings
From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. We are not currently a party to any litigation the outcome of which, if determined adversely to us, would individually or in the aggregate be reasonably expected to have a material adverse effect on our business, operating results, cash flows or financial condition.
In July 2017, we received an initial civil investigative demand, or CID, from the DOJ pursuant to the federal False Claims Act investigating whether we and others may have violated the False Claims Act by marketing tests on devices that use photoplethysmography technology as reimbursable by Medicare in alleged contravention of applicable laws and regulations. We cooperated with the investigation, along with subsequent CIDs received in February 2019, December 2021, April 2022 and April 2023 addressed to our company or individual current or former employees related to the same investigation. In September 2024, DOJ shared certain information to which we responded in January and February 2025. On February 6, 2025, DOJ asked if we wished to engage in settlement discussions to resolve any potential claims by February 11, 2025 and if so that we make a settlement offer by such deadline. Prior to February 6, 2025, DOJ had not stated an intention to pursue a claim of wrongdoing against our company. On February 11, 2025, we began initial settlement discussions with DOJ, but ceased initial discussions on that date. Accordingly, there is a risk that DOJ will file a complaint or complaint in intervention in a civil False Claims Act lawsuit seeking damages. We do not believe the amount of loss can be reasonably estimated. We intend to vigorously defend ourselves in any such action.
The opening of Item 3, Legal Proceedings.4
Sources
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- 16SEC EDGARRobert McRae, President
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- 22SEC EDGARNatalie Brunell, Board member
- 23SEC EDGAREric Semler, Board member
- 24SEC EDGARDaniel S. Messina, Board member
- 25SEC EDGARCindy Moon, Board member
- 26SEC EDGARElliot A. Sainer, Board member
- 27SEC EDGARGreg Shaw Garfield, Board member
- 28SEC EDGARHerbert J. Semler, Board member
- 29SEC EDGARShirley L. Semler, Board member
- 30SEC EDGARWilliam H. Chang, Board member
- 31SEC EDGARBruce Barclay, Board member
- 32SEC EDGARWayne T. Pan, Board member
- 33SEC EDGARArthur N. Leibowitz, Board member
- 34SEC EDGARAidan Matthew Collins, Board member
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- 36SEC EDGARShareholder vote
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- 42SEC EDGARExecutive or director change
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- 45SEC EDGAROther events
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