Filings/KMTS/10-Q

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EDGAR
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KPIsSections15

Income flow

Headline metrics
Revenue — GREEN$31.0M
Gross margin — GREEN56.5%
Net income — GREEN-$44.1M
Net margin — GREEN-142.3%
Operating margin — RED-121.6%
Red flags4 red2 orange
Liquidity5
RED
Negative operating cash flowoperating_cf_burn
The company is burning cash from operations — sustainability depends on financing.
RED
Net margin -142.3%net_margin_sharply_negative
Net income margin below -5% — profitability materially negative vs revenue.
RED
Cash conversion (CFO/Rev) -104.3%cash_conversion_weak
CFO/Revenue below 0 — operating model not generating cash despite revenue.
ORANGE
Cash runway ~2.1 yearscash_runway_medium
Cash runway is 2–3 years — worth monitoring vs growth plans.
ORANGE
Accumulated deficit / equity 313%accumulated_deficit_high
Accumulated deficit exceeds equity book value — balance sheet technically impaired.
Dilution · capital1
RED
SBC/Revenue 30.7%sbc_revenue_high
Stock-based compensation exceeds 25% of revenue — materially dilutive.
Income Statement
Income Statement
MetricValueFlag
EPS (diluted)$-0.75GREEN
Gross Margin56.5%GREEN
Net Income-$44.1MGREEN
Net Margin-142.3%GREEN
Operating Margin-121.6%RED
R&D % Revenue21.9%GREEN
Revenue$31.0MGREEN
Revenue (quarter)$31.0MGREEN
Balance Sheet
Balance Sheet
MetricValueFlag
Broad Liquidity$198.9MGREEN
Cash$68.6MGREEN
Current Ratio4.69GREEN
Debt/Equity0.33GREEN
Total Assets$347.4MGREEN
Total Equity$222.4MGREEN
Cash Flow
Cash Flow
MetricValueFlag
Cash Conversion (CFO/Rev)-1.04GREEN
Free Cash Flow-$40.6MGREEN
Operating CF-$32.3MGREEN
SBC % Revenue30.7%GREEN

Sections in this filing

MD&A

Ite m 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our unaudited interim condensed consolidated financial statements and the related notes to those statements included in this Quarterly Report and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal years ended April 30, 2026 and 2025 included in our Annual Report. In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under the sections entitled “Special Note Regarding Forward-Looking Statements” included in this Quarterly Report and in the sections entitled “Special Note Regarding Forward-Looking Statements” and Part I, Item 1A "Risk Factors" in our Annual Report. Overview We are a commercial-stage wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease through connected monitoring, therapeutic intervention, and data-driven clinical insights. We have developed and are commercializing the Cardiac Recovery System platform, an integrated cardiac recovery ecosystem designed to support patients at elevated risk of sudden cardiac arrest ("SCA") during vulnerable periods of recovery. Our Cardiac Recovery System platform is anchored by the ASSURE® WCD, which continuously monitors patient heart rhythms and automatically delivers defibrillation therapy when life-threatening ventricular arrhythmias are detected. The platform also includes digital patient engagement and clinical workflow solutions designed to improve patient adherence, support care coordination, and provide actionable clinical insights throughout the recovery process. We believe the ASSURE® WCD is differentiated by its patient-centered design, including comfort, wearability, and low false alarm rates, which are intended to improve patient compliance during extended wea