Cheelcare Announces Third Quarter 2026 Financial Results

Rhea-AI Summary

Cheelcare (OTC: CHCRF) reported Q3 fiscal results for the quarter ended January 31, 2026, with revenue of $549,857 (16% year-over-year) and net loss of $509,824. Gross margin improved to 44.3%. Key operational wins include U.S. HCPCS reimbursement for Companion, PDAC verification, Health Canada "Compliant" rating, 2,000 cumulative Companion units sold and distribution through over 500 dealer locations. Cash was $83,642 with working capital of $355,047; the company completed a $1.0 million unsecured promissory note financing on February 18, 2026 to support working capital and manufacturing scale-up.

Positive

• Revenue increased 16% year-over-year to $549,857
• Gross margin expanded to 44.3% from 31.2%
• U.S. HCPCS/PDAC reimbursement eligibility secured for Companion
• Completed $1.0 million unsecured promissory note financing
• Health Canada issued a "Compliant" rating

Negative

• Net loss widened to $509,824 (Q3 ended Jan 31, 2026)
• Cash and cash equivalents low at $83,642 at quarter end
• FDA 510(k) for Curio remains ongoing (timelines uncertain)

Markham, Ontario--(Newsfile Corp. - March 25, 2026) - Cheelcare Inc. (TSXV: CHER) (OTC: CHCRF) ("Cheelcare" or the "Company"), a Canadian innovator in advanced mobility solutions, today announced its financial results for the third quarter ended January 31, 2026. All figures are in CAD unless otherwise noted.

Operational Highlights (Three Months Ended January 31, 2026)

• Record quarterly revenue: The Company achieved its strongest quarterly performance to date, reflecting growing adoption of its mobility solutions and expansion across its distribution network.
• Companion reimbursement milestone in the United States: During the quarter, the Companion power-assist device received Pricing, Data Analysis, and Coding (PDAC) verification, enabling reimbursement eligibility through U.S. Medicare and Medicaid programs, a key catalyst expected to expand adoption across Cheelcare's U.S. dealer network.
• Commercial milestone achieved: The Company surpassed 2,000 cumulative Companion units sold, reflecting increasing market acceptance and strengthening brand recognition across North America.
• Distribution network expansion: Cheelcare's products are now distributed through over 500 dealer locations globally, including the top three dealer networks in North America.
• Quality and regulatory systems: Following a routine inspection, Health Canada issued a "Compliant" rating, validating the Company's quality management systems and regulatory processes as it scales production.
• Manufacturing scale-up: The Company continued to tune production operations at its 16,000 sq. ft. manufacturing facility, strengthening supply chain control and preparing for higher commercial volumes.

Financial Highlights (Three Months Ended January 31, 2026)

• Revenue of $549,857 compared to $473,795 in Q3, 2025 or 16% increase.
• Net revenue of $470,614, compared to $394,055 in Q3, 2024.
• Gross profit of $208,630, or 44.3%, compared to $123,317, or 31.2%, in Q3, 2025.
• Net loss of $(509,824), or $(0.02) per share, compared to $(310,083), or ($0.04) per share in Q3, 2025. The quarterly loss reflects planned investments in production scale-up, regulatory readiness, and public company costs.
• Cash and cash equivalents of $83,642 and working capital of $355,047 on January 31, 2026.*

*Subsequent to quarter end, on February 18, 2026 the Company completed a $1.0 million unsecured promissory note financing with institutional investors to support working capital, inventory, and manufacturing activities.

Executive Commentary

"This quarter reflects the continued buildout of the operating foundation required to scale the business," said Eugene Cherny, CEO of Cheelcare. "We increased inventory and manufacturing capacity to support anticipated demand, while advancing regulatory and reimbursement initiatives, including establishing Medicare and Medicaid eligibility for Companion in the United States. We continue to make progress with ADP and the U.S. FDA 510(k) processes for Curio. While timelines are subject to third party review, we anticipate providing updates on these initiatives in the second or third quarter of calendar 2026. These milestones are expected to expand market access and support adoption as we move into the next phase of commercialization."

Curio Regulatory & Reimbursement Update

• Ontario ADP: Curio remains under review within Ontario's Assistive Devices Program.
• U.S. FDA 510(k): The FDA 510(k) pre-market notification process is ongoing. Cybersecurity testing of Curio has been completed, representing a key step toward submission of the 510(k) to the FDA.
• U.S. Reimbursement (HCPCS): Companion received Healthcare Common Procedure Coding System (HCPCS), enabling reimbursement through Medicare and Medicaid programs and other sources for reimbursement.

Appointment of New Chief Financial Officer

The Company announces that it has appointed Natasha Tsai Chief Financial Officer effective April 7, 2026. Arnab De has resigned from his position as part of the Company's transition following its public listing. The Company thanks Mr. De for his contributions.

Ms. Tsai, CPA, CA, is Managing Director at Malaspina Consultants Inc., where she provides CFO and financial advisory services to growth-stage companies across a range of industries. She has extensive experience in financial operations, reporting, and supporting businesses through periods of scale. Prior to joining Malaspina, Ms. Tsai served as Chief Financial Officer and as corporate controller within early stage and growth-oriented companies in the energy and technology sectors. She holds a degree from the Sauder School of Business at UBC and received her Chartered Accountant designation in 2007.

"As we transition from foundational buildout to scaling operations, Natasha brings the experience, team, and resources through Malaspina to support our growth," said Eugene Cherny, CEO. "We look forward to working closely with Natasha as we continue to build the business."

About Cheelcare Inc.

Cheelcare designs and manufactures innovative mobility solutions that empower independence for people with disabilities. From the Companion power assist devices to the groundbreaking Curio robotic complex-rehab power wheelchair, Cheelcare combines engineering excellence with human-centered design to improve quality of life. For more information, please visit: www.cheelcare.ca.

For further information, please contact:

Sofia Kagan, Director of Marketing
Cheelcare Inc.
Tel: 1-888-948-2680 x206
Email: skagan@cheelcare.com

This news release may contain forward-looking statements. Forward-looking statements are based on current expectations and involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those expressed or implied. Such factors include, but are not limited to, general economic conditions, market demand, supply chain disruptions, and regulatory approvals. Any forward-looking statements are made as of the date of this news release, and the Company does not undertake to update any forward-looking statements except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/289783

FAQ

What were Cheelcare (CHCRF) Q3 2026 revenue and net loss figures?

Cheelcare reported Q3 revenue of $549,857 and a net loss of $509,824. According to the company, revenue rose 16% year-over-year while the loss reflected investments in production scale-up, regulatory readiness, and public company costs.

How does HCPCS/PDAC verification affect Cheelcare Companion sales (CHCRF)?

HCPCS/PDAC verification enables Medicare and Medicaid reimbursement eligibility for Companion. According to the company, this reimbursement milestone is expected to expand adoption across its U.S. dealer network and improve payor-covered access for patients.

What cash and financing actions did Cheelcare (CHCRF) take after Q3 2026?

Cheelcare had $83,642 cash at quarter end and completed a $1.0 million unsecured promissory note on February 18, 2026. According to the company, proceeds support working capital, inventory, and manufacturing activities.

What operational milestones did Cheelcare (CHCRF) report for Q3 2026?

Cheelcare surpassed 2,000 cumulative Companion units sold and expanded to over 500 dealer locations. According to the company, these milestones reflect growing adoption and broader distribution across North America and other markets.

What regulatory progress has Cheelcare (CHCRF) made on Curio as of March 25, 2026?

Curio remains under Ontario ADP review and the FDA 510(k) process is ongoing; cybersecurity testing is complete. According to the company, 510(k) submission steps continue with updates expected in Q2 or Q3 calendar 2026.

How might Cheelcare's (CHCRF) gross margin improvement affect investors?

Gross margin improved to 44.3% from 31.2% year-over-year, indicating better product economics. According to the company, margin expansion reflects higher net revenue and operational tuning during manufacturing scale-up.