Cheelcare Announces Second Quarter Fiscal 2026 Financial Results

Executive Summary

• Cheelcare Inc. reported Q2 2025 financial results, showing a net loss of $547,451 (‑$0.03 per share) versus a loss of $34,060 in the prior year quarter.
• The company completed its transition to a new 16,000 sq ft manufacturing facility and began pilot production of the Curio robotic wheelchair.
• Regulatory filings were submitted for Ontario ADP approval, U.S. FDA 510(k) clearance, and U.S. HCPCS reimbursement review.

Key Details

• Financial Highlights (Three months ended Oct 31 2025)
• Gross revenue: $459,158 (down from $510,673 YoY).
• Net revenue: $391,939 (down from $431,277 YoY).
• Gross profit: $228,141 (down from $270,900 YoY); gross margin ≈ 58%.
• Net loss and comprehensive loss: $(547,451) or $(0.03) per share (vs. $(34,060) or $(0.00) per share YoY).
• Adjusted EBITDA loss: $(481,857).

• Cash & cash equivalents: $848,605; working capital: $1,027,139 as of Oct 31 2025.

• Operational Highlights

• Completed inventory, equipment, and production line transition to new 16,000 sq ft facility; operations commenced late October 2025.
• Implemented advanced manufacturing processes based on Toyota Production System (TPS) principles via Mobility Unlimited Hub program participation.
• Established production workflows and in‑house assembly for pilot production and future scale‑up.
• Began pilot production of the Curio robotic complex rehabilitation wheelchair to support validation, process optimization, and early commercial deployment.
• Launched an updated version of the Companion product with new features and configuration options.
• Expanded dealer/distribution network to >500 locations globally, including >20 U.S. Veterans Affairs Medical Centers.

• Continued hiring across operational, manufacturing, and commercialization teams.

• Regulatory & Reimbursement Updates

• Ontario Assistive Devices Program (ADP): submission under review.
• U.S. FDA 510(k) pre‑market notification: process ongoing.
• U.S. HCPCS reimbursement for Companion product: submitted for review; approval would enable reimbursement pathways in U.S. healthcare programs.

Notable Quotes

• “This quarter was about building the operational and regulatory foundation required for scale,” said Eugene Cherny, CEO. “With our new facility operational, a larger technical team in place, and Curio now entering early commercialization, Cheelcare is positioned to convert regulatory milestones into meaningful revenue growth.”

Materiality Assessment: Non‑Material – Negative (financial results show increased loss; operational progress is positive but does not materially alter the company’s overall financial position).