zSpace and HealthForce Kentucky Bring Immersive Healthcare Training to 16 Counties and 28 Schools Across the Region

Rhea-AI Summary

zSpace (OTC:ZSPC) and HealthForce Kentucky are deploying 80 headset-free AR/VR laptops to expand immersive healthcare training across 16 counties and 28+ schools in western Kentucky.

The project combines a new simulation and innovation center with a mobile education trailer and rotating devices to improve access to Nursing and Allied Health programs.

News Market Reaction – ZSPC

-10.42%

-10.42% Session close to close

In the May 26 session, ZSPC declined 10.42%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -10.4% in the session following this news. A negative reaction despite constructiv...

Analysis

The stock dropped -10.4% in the session following this news. A negative reaction despite constructive deployment news would fit a pattern where the market focuses on financial strain. Recent filings cite Q1 2026 revenue of $5.3M, cash of $2.9M versus $35.9M in liabilities and a $25.4M stockholders’ deficit, along with going‑concern language. Past earnings on May 14 saw a -15.22% move, contrasting with strong gains on expansion updates, suggesting investors have weighed liquidity and capital-structure risk heavily during selloffs.

Key Figures

Q1 2026 revenue: $5.3M Prior-year revenue: $6.8M Gross margin: 53% +5 more

8 metrics

Q1 2026 revenue $5.3M Quarter ended March 31, 2026 (10-Q/8-K)

Prior-year revenue $6.8M Q1 2025 comparison from filings

Gross margin 53% Q1 2026, 10-Q/8-K

Adjusted EBITDA loss $2.1M Q1 2026, improved vs prior year

Cash & equivalents $2.9M As of March 31, 2026 (10-Q)

Total liabilities $35.9M As of March 31, 2026 (10-Q)

Stockholders’ deficit $25.4M As of March 31, 2026 (10-Q)

Healthcare training reach 16 counties, 28 schools, 80 devices HealthForce Kentucky partnership deployment footprint

Historical Context

5 past events · Latest: May 19 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 19	STEM partnership rollout	Positive	-0.6%	New Challenger Learning Center with NASA-style simulations using zSpace laptops.
May 14	Q1 2026 earnings	Negative	-15.2%	Revenue decline, wider net loss and ongoing strategic alternatives review.
May 12	Leadership recognition	Positive	+32.0%	Educator award highlighting AR/VR-based learning deployment with zSpace.
May 05	International lab launch	Positive	+32.9%	Opening of immersive 3D STEM lab in Poland with zSpace laptops.
May 01	Earnings call notice	Neutral	+7.1%	Announcement of Q1 2026 earnings release and conference call schedule.

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

Pattern Detected

Positive partnership and deployment news has often coincided with strong gains, while earnings-related updates have seen selling pressure, with one recent positive-news event showing a mild divergence to the downside.

Recent Company History

In the last month, zSpace has repeatedly highlighted expansion of its immersive AR/VR footprint. On May 5, a new 3D STEM lab in Poland using 10 laptops saw a 32.89% gain. Recognition of an education leader on May 12 coincided with a 32% rise. By contrast, Q1 2026 earnings on May 14 with revenue at $5.3M and continued losses led to a -15.22% move. Another partnership announcement on May 19 saw a modest -0.59% decline, showing occasional divergence even on favorable news.

Key Terms

augmented and virtual reality (ar/vr), ar/vr, cte

3 terms

augmented and virtual reality (ar/vr) technical

"zSpace, Inc. (OTC: ZSPC), a leading provider of augmented and virtual reality (AR/VR) learning solutions"

Augmented reality overlays digital information—images, text or graphics—onto your view of the real world, while virtual reality creates a fully digital, immersive environment you enter with a headset. Investors care because these technologies open new ways to sell products, services and advertising, create demand for hardware and software, and can reshape industries much like adding new rooms to a building creates more rentable space and revenue opportunities.

ar/vr technical

"Through a deployment of 80 headset-free AR/VR learning devices, HealthForce Kentucky is expanding access"

Augmented reality (AR) and virtual reality (VR) are technologies that add digital content to your view of the real world (AR) or place you inside a fully computer-created environment (VR), like wearing smart glasses or stepping into a simulated room. They matter to investors because they create new ways to sell hardware, software, services, and advertising, and can change how people shop, learn, and work—driving potential revenue growth but also requiring heavy investment and adoption to pay off.

cte technical

"The HealthForce Kentucky deployment reflects a growing model in CTE and workforce development"

Chronic Traumatic Encephalopathy (CTE) is a progressive brain condition linked to repeated head impacts that can cause memory loss, mood changes and impaired thinking; it is most often confirmed after death. Think of it as long-term wear-and-tear on the brain’s wiring. Investors watch CTE because research, lawsuits, regulatory action or changing safety standards can create legal costs, liability, insurance exposure and reputational damage that affect a company’s finances and future sales.

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

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Purpose-built simulation facility and mobile educational labs deploy 80 headset-free AR/VR Laptops to expand access to nursing and allied health training across western Kentucky

SAN JOSE, Calif., May 26, 2026 (GLOBE NEWSWIRE) -- zSpace, Inc. (OTC: ZSPC), a leading provider of augmented and virtual reality (AR/VR) learning solutions for education and workforce development, today highlighted its partnership with HealthForce Kentucky, a regional healthcare workforce development initiative serving 16 counties and over 28 schools across the state. Through a deployment of 80 headset-free AR/VR learning devices, HealthForce Kentucky is expanding access to immersive, hands-on training for students in Nursing and Allied Health programs, including Anatomy & Physiology Dual Credit classes.

At the center of the initiative is HealthForce Kentucky's newly designed, purpose-built simulation and innovation center. The facility features a dedicated computer lab outfitted with zSpace AR/VR Laptops alongside simulated operating rooms, high-fidelity inpatient and clinical examination rooms, and an anatomy lab. Twenty units are dedicated to this brick-and-mortar center and a mobile healthcare education trailer, with an additional 60 units rotating across middle school, high school, and postsecondary campuses throughout the region to ensure equitable access regardless of geography.

"HealthForce Kentucky is demonstrating exactly how regional partnerships and purpose-built facilities can close the critical healthcare skills gap," said Paul Kellenberger, CEO of zSpace. "Their model removes traditional geographic barriers, giving students the hands-on, experiential learning necessary for successful careers in healthcare."

To maximize educational impact, HealthForce Kentucky employs a dedicated onsite Simulation Specialist and a train-the-trainer model that enables master users to onboard additional facilitators, supporting long-term program sustainability as the initiative scales.

"Our vision is to be the central pulse for healthcare workforce development in Kentucky and beyond," said Bruce Williams, President and CEO of HealthForce Kentucky. "By integrating zSpace's immersive technology into both our simulation center and our mobile outreach units, we are ensuring that every community has access to skilled, compassionate healthcare professionals equipped with the training they need."

The HealthForce Kentucky deployment reflects a growing model in CTE and workforce development: bringing advanced, simulation-based learning beyond traditional classroom walls and directly into communities. For rural and geographically dispersed districts where access to specialized health science programming can be challenging, the mobile and shared-device structure makes immersive training scalable without requiring dedicated lab space at every campus.

About zSpace
zSpace, Inc. (OTC: ZSPC) delivers innovative augmented and virtual reality (AR/VR) experiences that drive achievement in STEM, CTE, and career readiness programs. Trusted by over 3,500 school districts, technical centers, community colleges, and universities, zSpace enables hands-on "learning by doing" experiences proven to improve engagement and student outcomes. Headquartered in San Jose, California, zSpace holds more than 80 patents, with research published in the Journal of Computer Assisted Learning (2021) validating the impact of 3D virtual reality technologies on student knowledge gains.

Press Contact:
Amanda Austin
Senior Marketing Director, zSpace, Inc.
press@zspace.com

Investor Relations Contact:
Gateway Group
Cody Slach, Greg Robles
949.574.3860 | ZSPC@gateway-grp.com

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/998ecb59-a119-4600-a513-2ffadee31e4f

https://www.globenewswire.com/NewsRoom/AttachmentNg/a23c82a0-6a6b-4d11-861a-9ae2c044a59f

https://www.globenewswire.com/NewsRoom/AttachmentNg/de88d4e2-c5a1-49a5-b33d-5c88bf2b163e

FAQ

What did zSpace (OTC:ZSPC) announce with HealthForce Kentucky on May 26, 2026?

zSpace announced a deployment of 80 headset-free AR/VR laptops with HealthForce Kentucky to expand immersive healthcare training. According to zSpace, the partnership supports Nursing, Allied Health, and Anatomy & Physiology Dual Credit programs across 16 counties and more than 28 schools in western Kentucky.

How many AR/VR laptops are being deployed in the zSpace and HealthForce Kentucky partnership?

The partnership is deploying 80 headset-free AR/VR learning devices. According to zSpace, 20 units support the new simulation and innovation center and a mobile education trailer, while 60 units rotate among middle school, high school, and postsecondary campuses to broaden access.

What is the purpose of the new HealthForce Kentucky simulation and innovation center using zSpace (ZSPC) technology?

The center is designed to provide immersive, hands-on healthcare training using zSpace AR/VR laptops. According to HealthForce Kentucky, it includes simulated operating rooms, high-fidelity inpatient and clinical exam rooms, and an anatomy lab to support regional healthcare workforce development across participating Kentucky counties.

How does the zSpace and HealthForce Kentucky collaboration improve rural healthcare training access?

The collaboration uses a mobile healthcare education trailer and rotating shared devices to reach dispersed communities. According to HealthForce Kentucky, this model brings simulation-based learning to rural districts without requiring each campus to build dedicated labs, helping expand health science training opportunities.

What educational programs benefit from the zSpace AR/VR deployment with HealthForce Kentucky?

Students in Nursing and Allied Health programs, including Anatomy & Physiology Dual Credit classes, benefit from the deployment. According to zSpace, the immersive simulations support experiential learning for middle school, high school, and postsecondary students preparing for healthcare careers across western Kentucky.

How is long-term sustainability supported in the HealthForce Kentucky and zSpace (ZSPC) initiative?

The initiative uses a dedicated onsite Simulation Specialist and a train-the-trainer model. According to HealthForce Kentucky, master users onboard additional facilitators over time, supporting ongoing use of zSpace AR/VR technology as the regional healthcare training program scales across more schools.