Flyte Aviation Executes Letter of Intent to Sell Cardiology Assets

The proposed divestiture would leave Flyte focused exclusively on aviation, with cash at closing and possible later contingent payments.

Rhea-AI Summary

Flyte Aviation (NYSE American: VJET) signed a non-binding letter of intent to sell its legacy cardiology assets, targeting year-end 2026 closing. The proposed sale covers subsidiary Catheter Precision's VIVO, LockeT and associated life sciences assets. It contemplates cash at closing, subject to adjustments, escrow and indemnification provisions, plus potential contingent payments tied to future monetization events or value thresholds within six years after closing.

Flyte expects the sale to complete its transition to private aviation, reduce operating expenses and fund fleet expansion and growth initiatives. Completion requires due diligence, a definitive agreement, board and any required stockholder or other approvals, and third-party consents. Preliminary, unaudited third-quarter 2026 revenue was approximately $2.1 million, up 110% quarter over quarter.

9 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointPreliminary, unaudited third-quarter 2026 revenue reached approximately $2.1 million, up 110% quarter over quarter.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Proposed cardiology divestiture would complete Flyte's transition to a pure-play private aviation business.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Proposed sale includes cash consideration at closing and potential contingent payments.
• Minor point. Forward-looking: it has not happened yet and may not happen.Flyte expects the proposed sale to reduce operating expenses and strengthen its balance sheet.
• Minor point. Forward-looking: it has not happened yet and may not happen.Sale proceeds would help fund fleet expansion in markets with demonstrated customer demand.

4 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Post-divestiture plans target additional bookings, repeat business and revenue-producing flight hours.
• Minor point. Forward-looking: it has not happened yet and may not happen.Post-divestiture plans include improved aircraft utilization and operating efficiency.
• Minor point. Forward-looking: it has not happened yet and may not happen.Planned partnership expansion aims to increase brand recognition and grow the customer base.
• Minor point. Forward-looking: it has not happened yet and may not happen.Planned technology development covers digital booking, customer acquisition capabilities and personalized service.

Negative

• Moderate pointNon-binding LOI leaves completion dependent on due diligence, a definitive agreement, approvals and third-party consents.
• Minor point. Forward-looking: it has not happened yet and may not happen.Contingent consideration depends on specified monetization events or value thresholds within six years after closing.
• Minor point. Forward-looking: it has not happened yet and may not happen.Closing cash consideration remains subject to adjustments, escrow and indemnification provisions.

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Details

Market Reaction – VJET

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$0.54 – $0.67 Day Range

$1.23M Mkt Cap at Last Price

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Key Figures

Target closing: Year-end 2026 Contingent consideration period: Six years Quarter-over-quarter revenue growth: 110%

Target closing

Year-end 2026

Target timing under the non-binding LOI

Contingent consideration period

Six years

Following closing, for specified future monetization events or value thresholds

Quarter-over-quarter revenue growth

110%

Preliminary, unaudited third quarter 2026 revenue report

Historical Context

1 past event · Latest: Nov 02

1 event

1. Nov 02

   FDA clearance

   24h Move

   +0.2%

   FDA 510(k) clearance expanded VIVO's labeled use to a broader patient population.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

contingent consideration, escrow, indemnification, part 135

4 terms

contingent consideration financial

"potential contingent consideration payable to the Company"

Contingent consideration is an additional payment agreed when one company buys another that will be paid later only if specific future targets are met, such as revenue, profit, or regulatory milestones. It matters to investors because it shifts risk between buyer and seller and affects the acquiring company's future cash flow and reported value — like promising a bonus after results are proven.

escrow financial

"subject to customary adjustments, escrow and indemnification provisions"

A neutral third party holds money, documents, or assets until both sides in a transaction meet agreed conditions, like a safety deposit box that only opens when everyone fulfills the rules. For investors, escrow reduces risk and increases certainty by ensuring payments or shares are released only when contractual steps are completed, which affects deal timing, legal protection, and the likelihood that a transaction will close as planned.

indemnification financial

"subject to customary adjustments, escrow and indemnification provisions"

A contractual promise to cover losses, expenses, or legal claims that arise from specified events, such as breaches of representations or third‑party lawsuits. For investors, indemnification matters because it shifts potential financial risk and future cash outflows from one party to another, similar to a friend agreeing to pay your bill if you’re sued, and can affect deal value, expected returns, and contingent liabilities on the balance sheet.

part 135 regulatory

"FAA-certified Part 135 operating subsidiary"

Part 135 is the section of U.S. aviation regulations that governs on-demand and small commercial air operations, such as charter flights, air taxis and some commuter services. For investors, Part 135 status signals the level of safety oversight, operating limits, insurance requirements and costs a company faces—think of it like a business license tier that dictates what routes, aircraft and customers a carrier can serve and how much it costs to run safely and legally.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Proposed Sale to include VIVO and LockeT Cardiac Electrophysiology product lines
• Divestiture would Complete the Company's Planned Transition to Pure-Play Tech-Enabled Private Aviation
• The Proposed Sale would result in a Significant Reduction of Operating Expenses
• Use of Sale Proceeds Would Include Funding Jet Fleet Expansion, Growth Initiatives, Higher Aircraft Utilization Targets

FORT MILL, S.C., Nov. 4, 2026 /PRNewswire/ -- Flyte Aviation, Inc. (NYSE American: VJET) ("Flyte" or the "Company"), a technology-enabled private aviation company, today announced that it has executed a non-binding Letter of Intent (LOI) to sell its legacy subsidiary Catheter Precision's VIVO, LockeT and associated life sciences assets. The parties to the LOI target closing by year-end 2026.

The LOI contemplates cash consideration payable at closing, subject to customary adjustments, escrow and indemnification provisions. The LOI also contemplates potential contingent consideration payable to the Company if specified future monetization events or value thresholds are achieved within six years following closing. There can be no assurance that any contingent consideration will be earned or paid.

The proposed sale is expected to significantly reduce Flyte Aviation's operating expenses, strengthen its balance sheet, and fund its various growth and expansion initiatives.

Completion of Flyte's Transition to a Pure-Play Aviation Company

The sale would complete the Company's planned transition to a technology-enabled private aviation business following its October 5, 2026, name change from Catheter Precision, Inc. to Flyte Aviation, Inc. and change of its NYSE American stock symbol to VJET.

"Our aviation business is delivering strong revenue growth, and we see sufficient demand to support further expansion," said David Jenkins, Chief Executive Officer of Flyte Aviation. "The proposed transaction would enable us, for the first time, to focus exclusively on growing our aviation business."

Flyte last month reported record preliminary, unaudited third quarter 2026 revenue of approximately $2.1 million, representing 110% quarter-over-quarter growth, as its aviation business continues to gain momentum and build in scale. Management believes this growth, combined with increasing customer adoption of its direct-to-consumer booking platform and an expanding network of strategic partnerships, provides a strong foundation for continued growth in 2027.

Following completion of the proposed divestiture, the Company will focus on:

• Fleet Expansion: Increasing aircraft availability in markets with demonstrated customer demand.
• Revenue Growth: Driving additional bookings, repeat business, and revenue-producing flight hours.
• Aircraft Utilization: Improving fleet and operating efficiency.
• Strategic Partnerships: Increasing brand recognition and growing our customer base.
• Technology Development: Advancing digital booking, customer acquisition capabilities, and personalized service.

The LOI is non-binding, and completion of the transaction remains subject to, among other things, satisfactory due diligence, negotiation and execution of a definitive agreement, board and any required stockholder or other approvals, receipt of third-party consents, and satisfaction of other closing conditions. There can be no assurance that the LOI will lead to a definitive agreement or that the transaction will be completed on the anticipated timeline or at all.

About Flyte Aviation

Flyte Aviation, Inc. (NYSE American: VJET) is a technology-enabled private aviation company focused on modernizing how consumers access private air travel. Through its Flyte brand, the Company operates a growing fleet of Cirrus Vision Jets and is building a scalable aviation platform designed to connect customers, aircraft, operators, and aviation services.

Flyte's simple value proposition: privacy, comfort, reliability, and convenience – at a highly competitive price.

Through its direct-to-consumer booking platform, standardized pricing on select routes, strategic partnerships, and FAA-certified Part 135 operating subsidiary, Ponderosa Air, LLC, Flyte is focused on delivering what it believes is a faster, safer and more convenient private aviation experience while expanding its technology, customer network, and geographic footprint.

For more information, visit www.flyflyte.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements regarding the proposed sale of the Company's legacy medical device assets, negotiation and execution of a definitive agreement, completion of the proposed transaction, the anticipated timing of closing, the expected cash consideration and any potential contingent consideration, estimated reductions in operating expenses and the related loss of gross profit, anticipated financial flexibility, use of capital, transition to a pure-play aviation company, fleet expansion, customer demand, technology development, aircraft utilization and future revenue growth, are forward-looking statements.

Words such as "believe," "expect," "anticipate," "intend," "plan," "seek," "may," "will," "potential," "could," "should," "continue" and similar expressions are intended to identify forward-looking statements. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied.

Such risks and uncertainties include, among others, the risk that the non-binding LOI terminates or expires before a definitive agreement is executed; the outcome of due diligence; the ability to negotiate and execute a definitive agreement and complete the proposed transaction; required board, stockholder and third-party approvals and consents and other closing conditions; transaction and transition costs; purchase price adjustments and escrow and indemnification obligations; retained liabilities; the risk that no contingent consideration is ever earned or paid; the Company's ability to realize the estimated expense reductions and the impact of the loss of revenue and gross profit from the life sciences business; adjustments to the Company's preliminary third quarter 2026 results; capital and aircraft availability; customer demand; and other risks described in the Company's filings with the Securities and Exchange Commission.

Readers are encouraged to review the Company's filings with the Securities and Exchange Commission, including its Forms 10-K and 10-Q, for additional risks and uncertainties that could affect the Company's business and future results.

The Company undertakes no obligation to update any forward-looking statements except as required by applicable law.

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SOURCE Flyte Aviation, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What cardiology assets does Flyte Aviation plan to sell, and when could the sale close?

Flyte plans to sell subsidiary Catheter Precision's VIVO, LockeT and associated life sciences assets, with the parties targeting closing by year-end 2026. The letter of intent is non-binding, and completion remains subject to due diligence, a definitive agreement, approvals and third-party consents.

How would Flyte Aviation be paid for the proposed cardiology asset sale?

The proposed terms contemplate cash at closing, subject to customary adjustments, escrow and indemnification provisions, plus potential contingent consideration. Those later payments depend on specified future monetization events or value thresholds being achieved within six years following closing; they are not guaranteed to be earned or paid.