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HealthLynked (HLYK) flags going concern risk amid Q2 2026 loss and heavy debt

(Moderate)
(Neutral)
Form Type
10-Q

Rhea-AI Filing Summary

HealthLynked Corp. reported declining activity and continued losses for the quarter ended June 30, 2026. Total revenue was $249,830, down from $592,360 a year earlier, and the net loss to common shareholders was $819,705, versus $701,038 in the prior-year quarter. For the first six months of 2026, revenue was $673,295 and the net loss to common shareholders was $2,477,356.

The balance sheet shows a very strained position. Total assets were $1,592,990 against total liabilities of $9,346,257, resulting in a shareholders’ deficit of $7,753,267. Cash was only $12,844 and the working capital deficit was $7,351,419. The company relies heavily on debt, including SBA disaster loans and multiple high-cost notes with original issue discounts, default conversion features, and derivative liabilities of $23,663.

Management stated there is substantial doubt about the company’s ability to continue as a going concern without additional funding, citing ongoing losses and expected cash outflows over at least the next 12 months. In February 2026, prior obligations to the CEO were refinanced into a new $5,715,812 secured convertible note at 12% interest and a $4.25 conversion price, generating a $1,328,069 gain on extinguishment of debt but also significant ongoing fair value volatility.

Positive

  • None.

Negative

  • Substantial doubt about going concern is disclosed, with management concluding the company will not have sufficient funds to meet obligations over the next 12 months without additional capital.
  • Operations remain deeply unprofitable, with a six‑month net loss to common shareholders of $2,477,356 and negative operating cash flow of $572,109.
  • The balance sheet is highly leveraged, showing total liabilities of $9,346,257 and a shareholders’ deficit of $7,753,267, alongside only $12,844 in cash.
  • Core activity is weakening, as quarterly revenue fell to $249,830 from $592,360 a year earlier, while losses widened and financing costs increased.

Filing Explained

The filing reports unissued conversion, warrant, option, and compensation shares alongside debt payments due from July 2026 through March 2027.

As an unaudited quarterly report, this Form 10-Q reports HealthLynked's financial position at June 30, 2026 and states that 2,953,225 common shares were outstanding on August 14, 2026; it reports no private-placement transaction during the first six months of 2026. It also lists unissued or conditional instruments that could add common shares if their stated conversion, exercise, vesting, or payment conditions are met, so the filing discloses dilution capacity rather than a completed new issuance.

The disclosed potential pool includes up to 1,409,836 shares from fixed-price convertible notes, 670,949 outstanding warrants, 131,174 stock options, 132,597 shares issuable for employee and consultant obligations, 246,875 grants subject to future vesting, and up to 137,500 shares issuable upon conversion of Series B preferred stock. Issuing additional shares would increase the total share count and reduce an existing holder's percentage ownership absent offsetting changes.

The debt schedule identifies remaining principal payments of $240,000 due July 22, 2026, $27,563 due August 15, 2026, $34,454 due August 30, 2026, $170,016 due November 15, 2026, and $205,827 due March 15, 2027; these are obligations, not payments reported as completed in this filing. Management states that without additional funding, the company will not have sufficient funds to meet its obligations through August 14, 2027.

Q2 2026 Revenue $249,830 Total revenue for the three months ended June 30, 2026
Q2 2026 Net loss to common shareholders $819,705 Net loss to common shareholders for the three months ended June 30, 2026
Six-month 2026 Net loss to common shareholders $2,477,356 Net loss to common shareholders for the six months ended June 30, 2026
Cash balance $12,844 Cash as of June 30, 2026
Working capital deficit $7,351,419 Working capital deficit as of June 30, 2026
Total liabilities $9,346,257 Total liabilities as of June 30, 2026
Shareholders’ deficit $7,753,267 Total shareholders’ deficit as of June 30, 2026
Operating cash flow $(572,109) Net cash used in operating activities for the six months ended June 30, 2026
going concern financial
"management concluded that, without additional funding, the Company will not have sufficient funds to meet its obligations"
Going concern is the accounting assumption that a company will keep operating and meeting its obligations for the foreseeable future. The phrase matters most when a company or its auditors disclose substantial doubt about it, a formal warning that the business may not have enough resources to continue without raising money, restructuring, or selling assets. That language in a filing or press release signals elevated financial risk.
reverse stock split financial
"On September 4, 2025, the Company effected a 1-for-100 reverse stock split of its issued and outstanding common stock"
A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.
contingent sale consideration receivable financial
"cash flow and fair value assumptions associated with measurements of contingent sale consideration receivable"
derivative financial instruments financial
"Derivative financial instruments are measured at fair value at each reporting date"
Derivative financial instruments are contracts whose value is tied to the price of something else — for example a stock, bond, commodity or market index — much like an insurance policy or a bet tied to the outcome of an event. They matter to investors because they can be used to reduce risk, amplify returns or speculate on price moves, but they can also magnify losses and affect a company’s financial exposure and market volatility.
down round adjustment financial
"deemed dividend resulting from down round adjustment"
original issue discount financial
"original issue discounts allocated to proceeds of notes payable"
Original issue discount (OID) is the difference between a debt security’s face value and the lower price at which it is first sold, treated as additional interest that accrues over the life of the instrument. For investors it matters because OID raises the effective yield and changes taxable income and the holding’s cost basis over time — think of buying a $100 voucher for $90 and recognizing the $10 gain as earned interest as the voucher approaches maturity.

FAQ

How did HealthLynked (HLYK) perform financially in Q2 2026?

HealthLynked reported a Q2 2026 net loss to common shareholders of $819,705 on revenue of $249,830. A year earlier, revenue was $592,360 with a $701,038 net loss, indicating lower sales and continued unprofitable operations.

What is HealthLynked’s (HLYK) cash position and working capital as of June 30, 2026?

As of June 30, 2026, HealthLynked held only $12,844 in cash and had a working capital deficit of $7,351,419. Current liabilities totaled $8,896,257, far exceeding current assets of $1,544,838, highlighting tight liquidity.

Does HealthLynked (HLYK) disclose going concern risks in this 10-Q?

Yes. Management states that, without additional funding, there is substantial doubt about the company’s ability to continue as a going concern through August 14, 2027, given ongoing losses, limited cash, and significant obligations.

How much debt does HealthLynked (HLYK) have and what are key terms?

Total liabilities were $9,346,257, including $450,000 in SBA disaster loans and $1,028,088 of other notes payable (net). Many notes carry original issue discounts, 12% interest rates, and default conversion features into common stock.

How many HealthLynked (HLYK) shares are outstanding after the reverse stock split?

Following a 1‑for‑100 reverse stock split effected on September 4, 2025, HealthLynked had 2,953,225 common shares outstanding as of August 14, 2026. Historical share and per‑share data have been retroactively adjusted to reflect the split.

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

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10–Q

 

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2026

 

or

 

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from [               ] to [                ]

 

Commission file number: 000-55768

 

HealthLynked Corp.
(Exact name of registrant as specified in its charter)
     
Nevada   47-1634127
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer
Identification No.)
     
1265 Creekside Parkway, Suite 200, Naples FL 34108
(Address of principal executive offices)
 
(800) 928-7144

(Registrant’s telephone number, including area code)

 

 
(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act: None.

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer   Accelerated filer  
Non-accelerated filer   Smaller reporting company  
    Emerging growth company  

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No

 

As of August 14, 2026, there were 2,953,225 shares of the issuer’s common stock, par value $0.0001, outstanding.

 

 

 

 

 

 

TABLE OF CONTENTS

 

    PAGE NO.
     
PART I FINANCIAL INFORMATION 1
Item 1 Financial Statements (Unaudited) 1
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations 37
Item 3 Quantitative and Qualitative Disclosures about Market Risk 45
Item 4 Controls and Procedures 45
     
Part II OTHER INFORMATION 46
Item 1 Legal Proceedings 46
Item 1A Risk Factors 46
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 46
Item 3 Defaults upon Senior Securities 46
Item 4 Mine Safety Disclosure 46
Item 5 Other Information 46
Item 6 Exhibits 47

 

i

 

 

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

HEALTHLYNKED CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

    June 30,     December 31,  
    2026     2025  
    (Unaudited)        
ASSETS            
Current Assets            
Cash   $ 12,844     $ 37,136  
Inventory, net     18,300       17,962  
Prepaid expenses and other current assets     50,176       32,935  
Contingent sale consideration receivable     1,463,518       1,463,518  
Total Current Assets     1,544,838       1,551,551  
                 
Property and equipment, net of accumulated depreciation of $764,979 and $728,710 as of June 30, 2026 and December 31, 2025, respectively     38,437       74,705  
Right of use lease assets     9,715       76,090  
                 
Total Assets   $ 1,592,990     $ 1,702,346  
                 
LIABILITIES AND SHAREHOLDERS’ DEFICIT                
Current Liabilities                
Accounts payable, accrued expenses and other current liabilities   $ 1,071,233     $ 821,480  
Contract liabilities     28,366       25,924  
Lease liability, current portion     9,715       75,168  
Derivative financial instruments     23,663       23,846  
Notes payable and other amounts due to related party, net of unamortized discounts of $5,261 and $-0- as of June 30, 2026 and December 31, 2025, respectively     7,041,218       5,533,231  
Notes payable, current portion, net of unamortized discounts of $134,091 and $109,027 as of June 30, 2026 and December 31, 2025, respectively     578,088       389,652  
Indemnification liability     143,974       143,974  
Total Current Liabilities     8,896,257       7,013,275  
                 
Long-Term Liabilities                
Lease liability, long term portion     ---       922  
Government and other notes payable, long term portion     450,000       450,000  
                 
Total Liabilities     9,346,257       7,464,197  
                 
Commitments and contingencies (Note 14)                
                 
Shareholders’ Deficit                
Common stock, par value $0.0001 per share, 500,000,000 shares authorized, 2,953,225 and 2,881,104 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively     295       288  
Series B convertible preferred stock, par value $0.001 per share, 20,000,000 shares authorized, 2,750,000 and 2,750,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively     2,750       2,750  
Common stock issuable, $0.0001 par value; 132,597 and 22,052 as of June 30, 2026 and December 31, 2025, respectively     49,510       61,349  
Additional paid-in capital     45,210,752       44,712,980  
Accumulated deficit     (53,016,574 )     (50,539,218 )
Total Shareholders’ Deficit     (7,753,267 )     (5,761,851 )
                 
Total Liabilities and Shareholders’ Deficit   $ 1,592,990     $ 1,702,346  

 

See the accompanying notes to these Unaudited Condensed Consolidated Financial Statements

 

1

 

 

HEALTHLYNKED CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2026     2025     2026     2025  
Revenue                        
Patient service revenue, net   $ 230,515     $ 572,840     $ 649,128     $ 1,324,855  
Subscription revenue     7,187       7,099       10,681       16,683  
Product revenue     12,128       12,421       13,486       25,030  
Total revenue     249,830       592,360       673,295       1,366,568  
                                 
Operating Expenses and Costs                                
Practice salaries and benefits     139,223       285,379       281,327       687,745  
Other practice operating expenses     122,185       247,395       222,004       561,371  
Cost of product revenue     (520 )     15,978       8,514       33,794  
Selling, general and administrative expenses     517,489       451,755       1,364,770       1,081,170  
Depreciation and amortization     10,229       27,238       36,269       55,262  
Total Operating Expenses and Costs     788,606       1,027,745       1,912,884       2,419,342  
                                 
Loss from operations     (538,776 )     (435,385 )     (1,239,589 )     (1,052,774 )
                                 
Other Income (Expenses)                                
Gain on extinguishment of debt     ---       132,246       1,328,069       174,972  
Loss on change in fair value of debt     (143,123 )     (105,502 )     (2,323,649 )     (154,688 )
Gain on change in fair value of derivative financial instruments     32,599       694       64,768       45,732  
Amortization of original issue discounts on notes payable     (150,954 )     (214,580 )     (238,938 )     (619,693 )
Interest expense and other     (19,451 )     (78,511 )     (31,670 )     (145,526 )
Total other income (expenses)     (280,929 )     (265,653 )     (1,201,420 )     (699,203 )
                                 
Loss before provision for income taxes     (819,705 )     (701,038 )     (2,441,009 )     (1,751,977 )
                                 
Provision for income taxes     ---       ---       ---       ---  
                                 
Net loss   $ (819,705 )   $ (701,038 )   $ (2,441,009 )   $ (1,751,977 )
                                 
Deemed dividend     ---       ---       (36,347 )     ---  
                                 
Net loss to common shareholders   $ (819,705 )   $ (701,038 )   $ (2,477,356 )   $ (1,751,977 )
                                 
Net loss per share, basic and diluted:                                
Basic   $ (0.28 )   $ (0.25 )   $ (0.84 )   $ (0.62 )
Fully diluted   $ (0.28 )   $ (0.25 )   $ (0.84 )   $ (0.62 )
                                 
Net loss to common shareholders per share, basic and diluted:                                
Basic   $ (0.28 )   $ (0.25 )   $ (0.85 )   $ (0.62 )
Fully diluted   $ (0.28 )   $ (0.25 )   $ (0.85 )   $ (0.62 )
                                 
Weighted average number of common shares:                                
Basic     2,942,170       2,819,472       2,922,186       2,819,472  
Fully diluted     2,942,170       2,819,472       2,922,186       2,819,472  

 

See the accompanying notes to these Unaudited Condensed Consolidated Financial Statements

 

2

 

 

HEALTHLYNKED CORP.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ DEFICIT

SIX MONTHS ENDED JUNE 30, 2026

(UNAUDITED)

 

    Number of Shares                 Common     Additional           Total  
    Common     Preferred     Common     Preferred     Stock     Paid-in     Accumulated     Shareholders’  
    Stock     Stock     Stock     Stock     Issuable     Capital     Deficit     Deficit  
    (#)     (#)     ($)     ($)     ($)     ($)     ($)     ($)  
Balance at December 31, 2025     2,881,104       2,750,000       288       2,750       61,349       44,712,980       (50,539,218 )     (5,761,851 )
                                                                 
Fair value of warrants allocated to proceeds of convertible notes payable     ---       ---       ---       ---       ---       63,834       ---       63,834  
Consultant and director fees payable with common shares and warrants     60,000       ---       6       ---       7       205,787       ---       205,800  
Shares and options issued to employees     ---       ---       ---       ---       ---       91,722       ---       91,722  
Deemed dividend resulting from down round adjustment     ---       ---       ---       ---       ---       36,347       (36,347 )     ---  
Net loss     ---       ---       ---       ---       ---       ---       (1,621,304 )     (1,621,304 )
                                                                 
Balance at March 31, 2026     2,941,104       2,750,000       294       2,750       61,356       45,110,670       (52,196,869 )     (7,021,799 )
                                                                 
Issuance of previously subscribed shares     12,121       ---       1       ---       (11,851 )     11,850       ---       ---  
Consultant and director fees payable with common shares and warrants             ---               ---       4       77,745       ---       77,749  
Shares and options issued to employees     ---       ---       ---       ---       1       10,487       ---       10,488  
Net loss     ---       ---       ---       ---       ---       ---       (819,705 )     (819,705 )
                                                                 
Balance at June 30, 2026     2,953,225       2,750,000       295       2,750       49,510       45,210,752       (53,016,574 )     (7,753,267 )

 

See the accompanying notes to these Unaudited Condensed Consolidated Financial Statements

 

3

 

 

HEALTHLYNKED CORP.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ DEFICIT

SIX MONTHS ENDED JUNE 30, 2025

(UNAUDITED)

 

    Number of Shares                 Common     Additional           Total  
    Common     Preferred     Common     Preferred     Stock     Paid-in     Accumulated     Shareholders’  
    Stock     Stock     Stock     Stock     Issuable     Capital     Deficit     Deficit  
    (#)     (#)     ($)     ($)     ($)     ($)     ($)     ($)  
Balance at December 31, 2024     2,821,877       2,750,000       282       2,750       161,632       44,870,742       (48,164,615 )     (3,129,209 )
                                                                 
Sales of common stock     ---       ---       ---       ---       3,245       ---       ---       3,245  
Fair value of warrants allocated to proceeds of common stock     ---       ---       ---       ---       ---       6,755       ---       6,755  
Stock fees related to sales of common stock     ---       ---       ---               3,000       (3,000 )     ---       ---  
Fair value of warrants to extend related party debt     ---       ---       ---       ---       ---       25,625       ---       25,625  
Shares and options issued to employees     ---       ---       ---       ---       ---       7,126       ---       7,126  
Net loss     ---       ---       ---       ---       ---       ---       (1,050,939 )     (1,050,939 )
                                                                 
Balance at March 31, 2025     2,821,877       2,750,000       282       2,750       167,877       44,907,248       (49,215,554 )     (4,137,397 )
                                                                 
Stock fees related to sales of common stock     ---       ---       ---               3,000       (3,000 )     ---       ---  
Fair value of warrants to extend related party debt     ---       ---       ---       ---       ---       22,126       ---       22,126  
Fair value of beneficial conversion feature allocated to proceeds of related party debt     ---       ---       ---       ---       ---       58,725       ---       58,725  
Shares and options issued to employees     ---       ---       ---       ---       ---       5,266       ---       5,266  
Net loss     ---       ---       ---       ---       ---       ---       (701,038 )     (701,038 )
                                                                 
Balance at June 30, 2025     2,821,877       2,750,000       282       2,750       170,877       44,990,365       (49,916,592 )     (4,752,318 )

 

See the accompanying notes to these Unaudited Condensed Consolidated Financial Statements

 

4

 

 

HEALTHLYNKED CORP.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

 

    Six Months Ended
June 30,
 
    2026     2025  
Cash Flows from Operating Activities            
Net loss   $ (2,441,009 )   $ (1,751,977 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation and amortization     36,269       55,262  
Stock based compensation, including amortization of deferred equity compensation     385,759       12,392  
Gain on change in fair value of derivative financial instruments     (64,768 )     (45,732 )
Amortization of debt discount     238,938       619,693  
Gain on extinguishment of debt     (1,328,069 )     (174,972 )
Loss on change in fair value of debt     2,323,649       154,688  
Changes in operating assets and liabilities:                
Inventory     (339 )     17,098  
Contract assets     ---       9,381  
Prepaid expenses and other current assets     (17,241 )     29,461  
Right of use lease assets     55,497       122,121  
Accounts payable and accrued expenses     292,260       302,982  
Lease liability     (55,497 )     (123,153 )
Contract liabilities     2,442       (77,333 )
Net cash used in operating activities     (572,109 )     (850,089 )
                 
Cash Flows from Investing Activities                
Net cash used in investing activities     ---       ---  
                 
Cash Flows from Financing Activities                
Proceeds from sale of common stock     ---       10,000  
Proceeds from related party notes payable and advances     515,000       710,000  
Proceeds from third party notes payable and advances     500,000       305,000  
Repayment of related party notes payable and advances     (39,840 )     ---  
Repayment of third party notes payable     (427,343 )     (230,951 )
Net cash provided by financing activities     547,817       794,049  
                 
Net decrease in cash     (24,292 )     (56,040 )
Cash, beginning of period     37,136       76,241  
                 
Cash, end of period   $ 12,844     $ 20,201  

 

(continued)

 

5

 

 

HEALTHLYNKED CORP.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

 

    Six Months Ended
June 30,
 
    2026     2025  
Supplemental disclosure of cash flow information:            
Cash paid during the period for interest   $ 10,232     $ 13,158  
Cash paid during the period for income tax   $ ---     $ ---  
Schedule of non-cash investing and financing activities:                
Recognition of operating lease: right of use asset and lease liability   $ ---     $ 29,997  
Extinguishment of operating lease: right of use asset and lease liability   $ (10,878 )   $ (115,172 )
Fair value of warrants allocated to proceeds of related party notes payable   $ 9,699     $ ---  
Fair value of warrants allocated to proceeds of third party notes payable   $ 54,135     $ ---  
Fair value of derivative financial instruments allocated to proceeds of third party notes payable   $ 64,585     $ 62,017  
Fair value of beneficial conversion feature allocated to proceeds of related party notes payable   $ ---     $ 58,724  
Original issue discounts allocated to proceeds of notes payable   $ 140,843     $ 113,002  
Fair value of warrants issued to extend related party debt   $ ---     $ 47,751  
Principal amount of convertible notes payable to related party refinanced   $ 4,338,192     $ 2,981,500  
Deferred compensation payable included in principal balance of notes payable to related party   $ 300,600     $ ---  
Principal amount of undocumented advances converted to convertible note payable to related party   $ 269,840     $ 420,000  
Accrued interest included in fair value of note payable   $ 42,509     $ 234,329  
Accounts payable included in principal balance of notes payable to related party   $       $ 27,692  
Incremental fair value of convertible note payable to related party resulting from refinancing   $ 1,328,069     $ 11,607  
Fair value of shares issued for equity issuance costs   $ ---     $ 6,000  
Deemed dividend resulting from down round adjustment   $ 36,347     $ ---  
Issuance of previously subscribed shares   $ 11,851     $ ---  

 

See the accompanying notes to these Unaudited Condensed Consolidated Financial Statements

 

6

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 1 – BUSINESS AND BUSINESS PRESENTATION

 

General

 

HealthLynked Corp. (the “Company”) was incorporated in the State of Nevada on August 4, 2014. The Company currently operates in three distinct divisions:

 

  Health Services Division: This division is comprised of a single patient service practice under the Naples Center for Functional Medicine (“NCFM”) brand that includes the combined service offerings of (i) NCFM, a functional medical practice engaged in improving the health of its patients through individualized and integrative health care, (ii) Concierge Care Naples (“CCN”), a primary care providing a comprehensive range of medical services, and (iii) Aesthetic Enhancements Unlimited (“AEU”), a minimally and non-invasive cosmetic services. During October 2025, the Company sold the assets associated with its Bridging the Gap Physical Therapy (“BTG”) practice, which had previously been included in the Health Services segment.

 

  Digital Healthcare Division: At the forefront of healthcare innovation, this division develops and manages an advanced online concierge medical service. The HealthLynked Network facilitates efficient management of medical records and care, allowing seamless patient appointment scheduling, comprehensive telemedicine services, and a cloud-based system for medical information and records management. It also supports physicians in expanding their practices and acquiring new patients through our robust online scheduling system.

 

  Medical Distribution Division: MedOffice Direct LLC (“MOD”), a part of this division, operates as a virtual distributor of discounted medical supplies to consumers and medical practices nationwide, ensuring timely and cost-effective delivery.

 

Reverse Stock Split

 

On September 4, 2025, the Company effected a 1-for-100 reverse stock split of its issued and outstanding common stock (the “Reverse Stock Split”). In connection with the Reverse Stock Split, every 100 shares of the Company’s issued and outstanding common stock were automatically combined into one issued and outstanding share of common stock. The Reverse Stock Split did not change the par value of the common stock or the total number of shares authorized. No fractional shares were issued in connection with the Reverse Stock Split. Instead, any fractional share resulting from the Reverse Stock Split were rounded up to the nearest whole share.

 

As a result of the Reverse Stock Split, the number of issued and outstanding shares of common stock decreased from 284,750,832 shares to 2,847,873 shares. The number of shares reserved for issuance under the Company’s equity incentive plans and upon conversion or exercise of outstanding Series B Convertible Preferred Stock, convertible notes, stock options, and warrants were also proportionately adjusted. The Reverse Stock Split did not affect the Company’s total stockholders’ deficit, or the par value of the Company’s common stock, but did result in a proportionate adjustment to the per-share amounts of common stock and additional paid-in capital in the accompanying consolidated financial statements.

 

All share and per-share information presented in the accompanying consolidated financial statements and notes thereto (including historical periods) have been retroactively adjusted, where applicable, to reflect the Reverse Stock Split.

 

Presentation

 

These unaudited condensed consolidated financial statements reflect all adjustments including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows for the periods presented in accordance with the accounting principles generally accepted in the United States of America (“GAAP”). These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2025 and 2024, respectively, which are included in the Company’s Form 10-K, filed with the United States Securities and Exchange Commission (the “Commission”) on March 31, 2026. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited consolidated financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of results for the entire year ending December 31, 2026.

 

7

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 1 – BUSINESS AND BUSINESS PRESENTATION (CONTINUED)

 

On a consolidated basis, the Company’s operations are comprised of the parent company, HealthLynked Corp., and its operating subsidiaries: NCFM, BTG (through October 28, 2025), CCN, AEU, and MOD. All significant intercompany transactions and balances have been eliminated upon consolidation. In addition, certain amounts in the prior periods’ consolidated financial statements have been reclassified to conform to the current period presentation.

 

Uncertainty Due to Geopolitical Events

 

Due to the U.S.-Iran, Hamas-Israel and Russia-Ukraine conflicts, there has been uncertainty and disruption in the global economy. Although these events did not have a direct material adverse impact on the Company’s financial results for the three and six months ended June 30, 2026, at this time the Company is unable to fully assess the aggregate impact the conflicts will have on its business due to various uncertainties, which include, but are not limited to, the duration of the conflicts, the conflicts’ effect on the economy, the impact on the Company’s businesses and actions that may be taken by governmental authorities related to the conflicts.

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

 

A summary of the significant accounting policies applied in the presentation of the accompanying consolidated financial statements follows:

 

Basis of Presentation

 

The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP. All amounts referred to in the notes to the consolidated financial statements are in United States Dollars ($) unless stated otherwise.

 

Use of Estimates

 

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Significant estimates include assumptions about fair valuation of derivative financial instruments; cash flow and fair value assumptions associated with measurements of contingent sale consideration receivable; valuation of inventory; collection of accounts receivable; the valuation and recognition of stock-based compensation expense; valuation allowance for deferred tax assets; and borrowing rate consideration for right-of-use (“ROU”) lease assets including related lease liability and useful life of fixed assets.

 

Revenue Recognition

 

Patient service revenue

 

Patient service revenue is earned for functional medicine services provided to patients by the NCFM practice, physical therapy services provided to patients by the BTG practice (until sale of its assets in October 2025), aesthetics services provided by the AEU practice, and medical services provided to patients by the CCN practice (after its establishment in October 2024). Patient service revenue is reported at the amount that reflects the consideration to which the Company expects to be entitled in exchange for providing patient care. All amounts are due from patients at the time of service. Generally, the Company bills patients at the time of service. Revenue is recognized as performance obligations are satisfied.

 

8

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Performance obligations are determined based on the nature of the services provided by the Company. Revenue for performance obligations satisfied over time includes revenue from NCFM Optimal Health 365 annual access contracts, CCN annual and semi-annual concierge services, and BTG physical therapy bundles (through sale of the BTG assets in October 2025). Revenue from NCFM annual access contracts and CCN concierge services, which include bundled products and services that have substantially the same pattern of transfer to the customer, is recognized over the period of delivery, which is the same as the period of the contract (typically, either six months or one year). Revenue from prepaid BTG physical therapy bundles, for which performance obligations were satisfied over time as visits are incurred, were recognized based on actual visits incurred in relation to total expected visits. At inception of such contracts, the Company recognizes contract liabilities for the value of services to be provided and, where applicable, contract assets for recoverable amounts incurred to obtain a customer contract that would not have incurred if the contract had not been obtained. The Company believes that these methods provide a faithful depiction of the transfer of services over the term of the performance obligations based on the inputs needed to satisfy the obligation.

 

Revenue for performance obligations satisfied at a point in time, which includes all other patient service revenue, is recognized when goods or services are provided at the time of the patient visit, at which time the Company is not required to provide additional goods or services to the patient.

 

Product Revenue

 

Product revenue is derived from the distribution of medical products that are sourced from a third-party supplier. The Company recognizes revenue at a point in time when title transfers to customers and the Company has no further obligation to provide services related to such products, which occurs when the product ships. The Company is the principal in its revenue transactions and as a result revenue is recorded on a gross basis. The Company has determined that it controls the ability to direct the use of the product provided prior to transfer to a customer, is primarily responsible for fulfilling the promise to provide the product to its customer, has discretion in establishing prices, and ultimately controls the transfer of the product to the customer. Shipping and handling costs billed to customers are recorded in revenue. Contract liabilities related to product revenue are recognized when payment is received but for which the Company has not met its product fulfillment performance obligation.

 

Sales are made inclusive of sales tax, where such sales tax is applicable. Sales tax is applicable on sales made in the state of Florida, where the Company has physical nexus. The Company has determined that it does not have economic nexus in any other states. The Company does not sell products outside of the United States.

 

The Company maintains a return policy that allows customers to return a product within a specified period of time prior to and subsequent to the expiration date of the product. The Company analyzes the need for a product return allowance at the end of each period based on eligible products.

 

Cash and Cash Equivalents

 

For financial statement purposes, the Company considers all highly liquid investments with original maturities of three months or less to be cash and cash equivalents. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. The Company had $-0- and $-0- in cash balances in excess of the FDIC insured limit as of June 30, 2026 and December 31, 2025, respectively.

 

Other Comprehensive Income

 

The Company does not have any activity that results in Other Comprehensive Income.

 

9

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Leases

 

For new leases, the Company determines if an arrangement is or contains a lease at inception. Right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company’s leases do not provide an implicit discount rate. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Upon early termination of a lease, remaining ROU assets and lease liabilities are written off. Upon modification of a lease, the ROU asset and lease liability are remeasured based on the modified lease terms. Leases are included as ROU assets within other assets and ROU liabilities within accrued expenses and other liabilities and within other long-term liabilities on the Company’s consolidated balance sheets. See Note 7 for more complete details on balances as of the reporting periods presented herein.

 

Inventory

 

Inventory consisting of supplements, is stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method. Outdated inventory is directly charged to cost of goods sold.

 

Concentrations of Credit Risk

 

The Company’s financial instruments that are exposed to a concentration of credit risk are cash and accounts receivable. There are no patients/customers that represent 10% or more of the Company’s revenue or accounts receivable. Generally, the Company’s cash and cash equivalents are in checking accounts. The Company relies on a sole supplier for the fulfillment of substantially all of its product sales made through MOD.

 

Property and Equipment

 

Property and equipment are stated at cost. When retired or otherwise disposed, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference less any amount realized from disposition, is reflected in earnings. For consolidated financial statement purposes, property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives of 5 to 7 years. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized.

 

The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value.

 

Fair Value of Assets and Liabilities

 

Fair value is the price that would be received from the sale of an asset or paid to transfer a liability (i.e. an exit price) in the principal or most advantageous market in an orderly transaction between market participants. In determining fair value, the accounting standards have established a three-level hierarchy that distinguishes between (i) market data obtained or developed from independent sources (i.e., observable data inputs) and (ii) a reporting entity’s own data and assumptions that market participants would use in pricing an asset or liability (i.e., unobservable data inputs). Financial assets and financial liabilities measured and reported at fair value are classified in one of the following categories, in order of priority of observability and objectivity of pricing inputs:

 

  Level 1 – Fair value based on quoted prices in active markets for identical assets or liabilities;

 

  Level 2 – Fair value based on significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data; and

 

10

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

  Level 3 – Fair value based on prices or valuation techniques that require significant unobservable data inputs. Inputs would normally be a reporting entity’s own data and judgments about assumptions that market participants would use in pricing the asset or liability.

 

The fair value measurement level for an asset or liability is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques should maximize the use of observable inputs and minimize the use of unobservable inputs.

 

The Company utilizes a binomial lattice option pricing model to estimate the fair value of options, warrants, beneficial conversion features and other Level 3 financial assets and liabilities. The Company believes that the binomial lattice model results in the best estimate of fair value because it embodies all of the requisite assumptions (including the underlying price, exercise price, term, volatility, and risk-free interest-rate) necessary to fairly value these instruments and, unlike less sophisticated models like the Black-Scholes model, it also accommodates assumptions regarding investor exercise behavior and other market conditions that market participants would likely consider in negotiating the transfer of such an instruments.

 

Deemed Dividends

 

The Company accounts for convertible instruments in accordance with applicable guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 470, “Debt,” and ASC 260, “Earnings Per Share.” Certain of the Company’s convertible notes contain down-round features that provide for a reduction in the conversion price upon the occurrence of specified future equity issuances at prices below the then-current conversion price. The Company evaluates such down-round features to determine whether they require separate accounting or affect the classification of the host instrument. In accordance with ASC 260, when a down-round feature is triggered and results in a reduction of the conversion price, the Company recognizes the economic value transferred to the holder as a deemed dividend.

 

The amount of the deemed dividend is calculated as the difference between (i) the fair value of the shares issuable under the modified conversion terms and (ii) the fair value of the shares issuable under the original conversion terms, immediately prior to the triggering event. The deemed dividend is recognized in the period the down-round feature is triggered and is recorded as an adjustment to additional paid-in capital, with a corresponding charge to accumulated deficit. The deemed dividend does not impact net income (loss) but is treated as a reduction to income (loss) available to common stockholders in the calculation of basic and diluted earnings (loss) per share.

 

The Company reassesses the terms of its convertible instruments upon modification or triggering events to determine the appropriate accounting treatment. The Company recognized deemed dividends in the amount of $-0- and $-0- in the three months ended June 30, 2026 and 2025, respectively, and $36,347 and $-0- in the six months ended June 30, 2026 and 2025, respectively, related to triggered down round adjustments.

 

Stock-Based Compensation

 

The Company accounts for stock-based compensation to employees and nonemployees under ASC 718 “Compensation – Stock Compensation” using the fair value-based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. This guidance establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. The Company uses a binomial lattice pricing model to estimate the fair value of options and warrants granted.

 

The Company grants common stock awards to non-employees in exchange for services provided. The Company measures the fair value of these awards using the fair value of the services provided or the fair value of the awards granted, whichever is more reliably measurable. The fair value measurement date of these awards is generally the date the performance of services is complete. The fair value of the awards is recognized on a straight-line basis as services are rendered. The share-based payments related to common stock awards for the settlement of services provided by non-employees is recorded on the consolidated statement of operations in the same manner and charged to the same account as if such settlements had been made in cash. From time to time, the Company also issues stock awards settleable in a variable number of common shares. Such awards are classified as liabilities until such time as the number of shares underlying the grant is determinable.

 

11

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Income Taxes

 

The Company follows Accounting Standards Codification subtopic 740-10, Income Taxes (“ASC 740-10”) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability during each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse and are considered immaterial. No income tax has been provided for the three or six months ended June 30, 2026 or 2025, since the Company sustained a loss for all periods. Due to the uncertainty of the utilization and recoverability of the loss carry-forwards and other deferred tax assets, management has determined a full valuation allowance for the deferred tax assets, since it is more likely than not that the deferred tax assets will not be realizable.

 

Recurring Fair Value Measurements

 

The Company measures certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

 

The Company carries its note payable to a related party and derivative financial instruments at fair value on a recurring basis. The fair value of the note payable to a related party is determined using valuation techniques that incorporate significant unobservable inputs, including assumptions regarding the Company's credit risk, the market yield applicable to similar debt instruments, and other terms of the note, and is classified as a Level 3 fair value measurement.

 

Derivative financial instruments are measured at fair value at each reporting date. Depending on the specific terms and characteristics of the derivative, fair value is determined using valuation models that may incorporate observable market data and significant unobservable assumptions, including the Company's stock price, expected volatility, remaining term, probability-weighted scenarios, and other relevant inputs. Derivative financial instruments are generally classified as Level 3 within the fair value hierarchy when significant unobservable inputs are used in the valuation.

 

Non-Recurring Fair Value Measurements

 

Contingent sale consideration receivable was measured at fair value on the sale date pursuant to the guidance in FASB Emerging Issues Task Force Issue 09-4, “Seller Accounting for Contingent Consideration,” (“EITF 09-4”). The fair value of the IPO Share Consideration was determined using an expected present value approach, which applies a discount rate to a probability-weighted stream of net cash flows based on multiple scenarios, as estimated by management. The Company elected to subsequently treat contingent sale consideration receivable using gain contingency guidance and only record a gain or loss when the contingency is resolved pursuant to EITF 09-4.

 

Net Income (Loss) per Share

 

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. During the three and six months ended June 30, 2026 and 2025, the Company reported a net loss and excluded all outstanding stock options, warrants and other dilutive securities from the calculation of diluted net loss per common share because inclusion of these securities would have been anti-dilutive. As of June 30, 2026 and December 31, 2025, potentially dilutive securities were comprised of (i) 670,949 and 804,351 warrants outstanding, respectively, (ii) 131,174 and 135,791 stock options outstanding, respectively, (iii) up to 132,597 and 22,052 common shares issuable that are earned but not paid under consulting and director compensation arrangements, (iv) up to 1,409,836 and 1,260,936 shares potentially issuable upon conversion of outstanding fixed price convertible notes payable, (v) 246,875 and 346,250 stock grants subject to future vesting, and (vi) up to 137,500 and 137,500 shares of common stock issuable upon conversion of Series B Preferred stock.

 

Warrants

 

In connection with certain financing, consulting and collaboration arrangements, the Company has issued warrants to purchase shares of its common stock. The outstanding warrants are standalone instruments that are not puttable or mandatorily redeemable by the holder and are classified as equity awards. The Company uses a binomial lattice pricing model to estimate the fair value of compensation options and warrants. Warrants issued in conjunction with the issuance of common stock are initially recorded at fair value as a reduction in additional paid-in capital of the common stock issued. All other warrants are recorded at fair value as expense over the requisite service period, or at the date of issuance, if there is not a service period. Certain of the Company’s warrants include a so-called down-round provision. The Company accounts for such provisions pursuant to Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share, Distinguishing Liabilities from Equity and Derivatives and Hedging, which calls for the recognition of a deemed dividend in the amount of the incremental fair value of the warrant due to the down round when triggered.

 

12

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Segment Reporting

 

The Company uses the “management approach” under ASC 280, “Segment Reporting,” to identify its reportable segments. The management approach designates the internal organization used by management for making operating decisions and assessing performance as the basis for identifying the Company’s reportable segments. Using the management approach, the Company determined that it has three reportable segments: (1) Health Services, comprised of a single patient service practice under the NCFM brand that includes the NCFM, AEU and CCN service offerings, (2) Digital Healthcare, which develops and markets the “HealthLynked Network,” an online personal medical information and record archive system, and (3) Medical Distribution, comprised of the operations of MOD, a virtual distributor of discounted medical supplies selling to both consumers and medical practices. During October 2025, the Company sold the assets associated with its BTG practice, which had previously been included in the Health Services segment.

 

Recently Issued Pronouncements

 

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40).” This standard requires disclosure of specific information about costs and expenses and becomes effective January 1, 2027. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures.

 

In May 2025, the FASB issued ASU 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Share-Based Consideration Payable to a Customer. This ASU clarifies the accounting for share-based payments issued to a customer and reduces diversity in practice. The amendments are effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods. The Company expects to adopt this guidance for its year ending December 31, 2027. The Company does not expect the adoption to have a material impact on its financial statements.

 

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Practical Expedient for Estimating Expected Credit Losses. This ASU introduces a practical expedient for estimating expected credit losses for current accounts receivable and contract assets and requires additional disclosures when elected. The amendments are effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods. The Company expects to adopt this guidance for its year ending December 31, 2027. The Company is currently evaluating whether it will elect the practical expedient and does not expect the adoption to have a material impact on its financial statements.

 

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This ASU simplifies the accounting for internal-use software by eliminating the distinction between development stages and requiring capitalization of costs once management authorizes and commits to funding a project and it is probable that the project will be completed and the software will be used as intended. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027. The Company expects to adopt this guidance for its year ending December 31, 2027. The Company does not expect the adoption to have a material impact on its financial position, results of operations, or cash flows.

 

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow Scope Improvements. This ASU clarifies the application of interim reporting guidance and requires disclosure of material events and changes occurring subsequent to the most recent annual reporting period. The amendments also reorganize certain interim disclosure requirements. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027. Early adoption is permitted. The Company expects to adopt this guidance for its year ending December 31, 2027, with interim adoption beginning in fiscal year 2028. The Company is currently evaluating the impact of adopting this guidance on its condensed financial statements and related disclosures.

 

13

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Recently Adopted Pronouncements

 

In March 2024, the FASB issued ASU No. 2024-01, “Compensation—Stock Compensation (Topic 718): Scope Applications of Profits Interests and Similar Awards” (“ASU 2024-01”). ASU 2024-01 adds an example to Topic 718 which illustrates how to apply the scope guidance to determine whether profits interests and similar awards should be accounted for as share-based payment arrangements under Topic 718 or under other U.S. GAAP. The Company adopted this standard effective January 1, 2026. The adoption did not have a material impact on the Company’s consolidated financial statements.

 

In November 2024, the FASB issued ASU 2024-04, “Debt - Debt with Conversions and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments” (“ASU 2024-04”). ASU 2024-04 clarifies the requirements for determining whether certain settlements of convertible debt instruments, including convertible debt instruments with cash conversion features or convertible debt instruments that are not currently convertible, should be accounted for as an induced conversion. The Company adopted this standard effective January 1, 2026. The adoption did not have a material impact on the Company’s consolidated financial statements.

 

No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our consolidated Financial Statements.

 

NOTE 3 – LIQUIDITY AND GOING CONCERN ANALYSIS

 

Under ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), the Company is required to evaluate whether there is substantial doubt about its ability to continue as a going concern each reporting period, including interim periods. Pursuant to ASU 2014-15, in evaluating the Company’s ability to continue as a going concern, management considered the conditions and events that could raise substantial doubt about the Company’s ability to continue as a going concern within 12 months after the Company’s financial statements were issued (August 14, 2026), or through August 14, 2027. Management considered the Company’s current financial condition and liquidity sources, including current funds available, forecasted future cash flows and the Company’s obligations due before August 14, 2027.

 

The Company is subject to a number of risks, including uncertainty related to product development and generation of revenues and positive cash flow from its Digital Healthcare Division and a dependence on outside sources of capital. The attainment of profitable operations is dependent on future events, including obtaining adequate financing to fulfill the Company’s growth and operating activities and generating a level of revenues adequate to support the Company’s cost structure.

 

As of June 30, 2026, the Company had cash balances of $12,844, a working capital deficit of $7,351,419 and an accumulated deficit of $53,016,574. For the six months ended June 30, 2026, the Company had a net loss of $2,441,009 and used cash from operating activities of $572,109. The Company expects to continue to incur net losses and have significant cash outflows for at least the next 12 months.

 

Management has evaluated the significance of the conditions described above in relation to the Company’s ability to meet its obligations and concluded that, without additional funding, the Company will not have sufficient funds to meet its obligations within one year from the date the consolidated financial statements were issued.

 

During the six months ended June 30, 2026, the Company received (i) net proceeds from the issuance of notes payable to related parties and third parties and advances totaling $1,015,000, and (ii) made repayments on notes payable to related parties and third parties totaling $467,183.

 

Without raising additional capital, there is substantial doubt about the Company’s ability to continue as a going concern through August 14, 2027. The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of presentation contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business.

 

14

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 4 – DISPOSITIONS

 

Sale of AHP

 

On January 17, 2023, the Company entered into the AHP Merger Agreement, pursuant to which PBACO Holding, LLC (the “Buyer”) agreed to buy, and the Company agreed to sell, AHP (the “AHP Sale”). Pursuant to the terms of the AHP Merger Agreement, the Company received or was entitled to receive certain upfront and contingent consideration. As of June 30, 2026 and December 31, 2025, remaining unresolved consideration was comprised of shares of the Buyer’s common stock issuable to the Company in the event that the Buyer completes an initial public offering (“IPO”) by a prescribed date. The Company is entitled to shares in the public entity at the time of the IPO with a value equal to AHP’s 2021 earnings before interest, taxes depreciation and amortization (“EBITDA”) times the multiple of EBITDA used to value the Buyer’s IPO shares, net of any cash consideration previously paid by the Buyer and subject to vesting requirements detailed in the AHP Merger Agreement (the “IPO Share Consideration”). The prescribed date by which the IPO must be completed was originally February 1, 2025 and has been extended by the Buyer to November 17, 2026 for no additional consideration.

 

The Company was also required to indemnify the Buyer against liabilities arising from Buyer’s operation of AHP prior to the Buyer’s IPO date, less a deductible equal to 1% of the aggregate merger consideration (the “Indemnification Liability”).

 

The Company elected to record the contingent portion of consideration receivable, including the IPO Share Consideration, at fair value on the sale date pursuant to the guidance in EITF 09-4. The fair value of the IPO Share Consideration was determined using an expected present value approach, which applies a discount rate to a probability-weighted stream of net cash flows based on multiple scenarios, as estimated by management. As such, the fair value of the IPO Share Consideration relies on significant unobservable inputs and assumptions and there is uncertainty in the expected future cash flows used in the fair valuation. Significant assumptions related to the valuation of the IPO Share Consideration include the likelihood of a Buyer IPO and the valuation of the Buyer’s common stock in a potential IPO.

 

After January 17, 2023, and as prescribed under EITF 09-4, the Company elected to subsequently treat contingent consideration receivable, including the IPO Share Consideration, using gain contingency guidance and only record a gain or loss when the contingency is resolved. Accordingly, the Company does not prospectively remeasure the fair value of contingent consideration receivable each reporting period. The Company recognizes gains and losses from realization of contingent sale consideration receivable for the difference between the realized (or realizable) value of resolved contingent consideration components and the initial fair value recorded at the sale date. No gain from realization of contingent sale consideration receivable was recognized during the three or six months ended June 30, 2026 or 2025.

 

The carrying value of the remaining unresolved components of contingent consideration receivable as of June 30, 2026 and December 31, 2025 was as follows:

 

    June 30,     December 31,  
    2026     2025  
Assets:                
IPO Share consideration   $ 1,463,518     $ 1,463,518  
                 
Liabilities:                
Indemnification Clause   $ 143,974     $ 143,974  

 

15

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 5 – PREPAID EXPENSES AND OTHER

 

Prepaid and other expenses as of June 30, 2026 and December 31, 2025 were as follows:

 

    June 30,     December 31,  
    2026     2025  
             
Insurance prepayments   $ 883     $ 7,028  
Other expense prepayments     28,059       11,914  
MOD receipts in transit     7,241       ---  
Lease deposits     13,993       13,993  
Total prepaid expenses and other     50,176       32,935  

 

NOTE 6 – PROPERTY AND EQUIPMENT

 

Property and equipment as of June 30, 2026 and December 31, 2025 were as follows:

 

    June 30,     December 31,  
    2026     2025  
             
Medical equipment   $ 646,211     $ 646,211  
Furniture, office equipment and leasehold improvements     157,205       157,204  
                 
Total property and equipment     803,416       803,415  
Less: accumulated depreciation     (764,979 )     (728,710 )
                 
Property and equipment, net   $ 38,437     $ 74,705  

 

Depreciation expense was $10,229 and $27,238, during the three months ended June 30, 2026 and 2025, respectively, and $36,269 and $55,262 during the six months ended June 30, 2026 and 2025, respectively.

 

NOTE 7 – LEASES

 

As of June 30, 2026, the Company had an operating lease, and related amendments thereto, for office space housing its consolidated NCFM, AEU and CCN practices along with its Digital Healthcare and administrative functions expiring in July 2026. The Company did not renew the lease on this facility. Effective August 1, 2026, the Company agreed to a month-to-month rental on a new office space for its Health Services Division, Digital Healthcare and administrative functions. As of June 30, 2026, the Company’s weighted-average remaining lease term relating to its operating leases was 0.1 years, with a weighted-average discount rate of 22.77%.

 

The table below summarizes the Company’s lease-related assets and liabilities as of June 30, 2026 and December 31, 2025:

 

    June 30,     December 31  
    2026     2025  
Lease assets   $ 9,715     $ 76,090  
                 
Lease liabilities                
Lease liabilities (short term)   $ 9,715     $ 75,168  
Lease liabilities (long term)     ---       922  
Total lease liabilities   $ 9,715     $ 76,090  

 

Lease expense was $30,624 and $84,829 during the three months ended June 30, 2026 and 2025, respectively, and $60,323 and $167,148 during the six months ended June 30, 2026 and 2025, respectively.

 

16

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 7 – LEASES (CONTINUED)

 

Maturities of operating lease liabilities were as follows as of June 30, 2026:

 

2026 (July)   $ 9,900  
Total lease payments     9,900  
Less interest     (185 )
Present value of lease liabilities   $ 9,715  

 

NOTE 8 – ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

 

Amounts related to accounts payable, accrued expenses and other current liabilities as of June 30, 2026 and December 31, 2025 were as follows:

 

    June 30,     December 31,  
    2026     2025  
             
Trade accounts payable   $ 803,214     $ 530,702  
Accrued payroll liabilities     3,629       9,404  
Accrued operating expenses     181,630       177,204  
Accrued interest     57,322       78,393  
Accrued commissions payable from 2022 MSSP Consideration     25,000       25,000  
Product return allowance     438       777  
    $ 1,071,233     $ 821,480  

 

NOTE 9 – CONTRACT LIABILITIES

 

Amounts related to contract liabilities as of June 30, 2026 and December 31, 2025 were as follows:

 

    June 30,     December 31,  
    2026     2025  
             
Patient services paid but not provided   $ 28,029     $ 20,212  
MOD unshipped products     337       5,712  
    $ 28,366     $ 25,924  

 

Patient service contract liabilities relate to NCFM Optimal Health 365 annual access contracts, pursuant to which patients prepay for access to services to be provided at the patient’s request over a period of time, and CCN annual and semi-annual concierge fees that were fully recognized as of June 30, 2026. MOD sold but unshipped products represents orders paid by customers that have not shipped as of the balance sheet date.

 

17

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 10 – AMOUNTS DUE TO RELATED PARTY AND RELATED PARTY TRANSACTIONS

 

The carrying value of amounts due to related parties as of June 30, 2026 and December 31, 2025 were comprised of the following amounts owed to Dr. Michael Dent, the Company’s Chief Executive Officer and Chairman of the Board of Directors, and Jason Bishara, a member of the Company’s Board of Directors:

 

    June 30,     December 31,  
    2026     2025  
             
Convertible notes payable to Dr. Michael Dent, carried at fair value   $ ---       4,256,099  
Convertible notes payable to Dr. Michael Dent, carried at amortized value     ---       656,692  
Undocumented advances payable to Dr. Michael Dent     465,000       319,840  
Deferred compensation payable to Dr. Michael Dent     ---       300,600  
Total Prior Dent Debt payable to Dr. Michael Dent     465,000       5,533,231  
February 2026 Dent Note, carried at fair value     6,556,479       ---  
Total amounts due to Dr. Michael Dent     7,021,479       5,533,231  
                 
Convertible note payable to Jason Bishara   $ 25,000     $ ---  
Less: unamortized discount     (5,261 )     ---  
Total amounts due to Jason Bishara   $ 19,739     $ ---  
Total notes payable and other amounts due to related party   $ 7,041,218     $ 5,533,231  

 

Refinancing of Convertible Notes and Other Amounts Payable to Dr. Michael Dent – February 2026

 

On February 2, 2026, the Company refinanced all past outstanding notes with aggregate principal totaling $4,338,192, accrued interest totaling $737,180, undocumented advances totaling $339,840 and accrued compensation liabilities totaling $300,600 payable to Dr. Michael Dent or a trust controlled by Dr. Michael Dent (the “Prior Dent Debt”) into a new consolidated Secured Convertible Promissory Note in the principal amount of $5,715,812 payable to a trust controlled by Dr. Michael Dent (the “February 2026 Dent Note”). The February 2026 Dent Note accrues interest at a rate of 12% per year and matures on February 2, 2029, at which time all outstanding principal and interest is due. The February 2026 Dent Note is convertible into shares of common stock at any time at the holder’s discretion at a conversion price of $4.25 per share, subject to adjustment in the event of a future offering by the Company at a price lower than the conversion price. In connection with the issuance of the February 2026 Dent Note, the Prior Dent Debt was extinguished and the holder agreed to waive any default on the Prior Dent Debt (the “Refinancing”).

 

In connection with the Refinancing, the Company recognized a gain on debt extinguishment in the amount of $-0- and $1,328,069 in the three and six months ended June 30, 2026, representing the excess of the carrying value of the Prior Dent Debt over the inception date fair value of the February 2026 Dent Note on the Refinancing date of February 2, 2026.

 

Description of Convertible Notes Payable to Jason Bishara

 

On January 14, 2026, the Company issued to Jason Bishara a convertible note with principal of $25,000, an interest rate of 12% per annum, and a maturity date of January 14, 2027. The note is convertible into shares of Company common stock at a fixed conversion price of $3.00 per share. The Company received net proceeds of $25,000. In connection with the note, the Company also issued Mr. Bishara a five-year warrant to purchase 8,333 shares of Company common stock at an exercise price of $3.00 per share. At inception, the Company recorded a discount against the note of $9,699 for the allocated fair value of the warrant.

 

18

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 10 – AMOUNTS DUE TO RELATED PARTY AND RELATED PARTY TRANSACTIONS (CONTINUED)

 

Convertible Notes Payable Carried at Fair Value

 

The February 2026 Dent Note and certain of the convertible notes payable included in the Prior Dent Debt are carried at fair value as a result of extensions and refinancings that were treated as an extinguishment and reissuance transactions. Such notes are revalued to their fair value at each period end. Convertible notes payable to Dr. Dent that are carried at fair value and revalued each period were comprised of the following as of June 30, 2026 and December 31, 2025:

 

    June 30,     December 31,  
    2026     2025  
             
Prior Dent Debt   $ ---        4,256,099  
February 2026 Dent Note     6,556,479       ---  
Convertible notes payable to Dr. Michael Dent, carried at fair value   $ 6,556,479     $ 4,256,099  

 

Changes in the fair value of convertible notes payable to Dr. Dent during the three and six months ended June 30, 2026 and 2025 were as follows:

 

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2026     2025     2026     2025  
                         
Prior Dent Debt   $ ---       105,502     $ 364,453       154,688  
February 2026 Dent Note     143,123       ---       1,959,196       ---  
Loss on change in fair value of debt   $ 143,123     $ 105,502     $ 2,323,649     $ 154,688  

 

Convertible Notes Payable Carried at Amortized Value

 

Convertible notes payable to Dr. Dent and Jason Bishara that have not been extended are recorded at their face value, net of discounts recorded at inception related to original issue discounts, warrants issued with the convertible notes, and embedded conversion features (“ECFs”) in the convertible notes. Convertible notes payable related parties that are carried at net amortized value were comprised of the following as of June 30, 2026 and December 31, 2025:

 

    June 30,     December 31,  
    2026     2025  
             
Prior Dent Debt   $ ---     $ 656,692  
Convertible note payable to Jason Bishara     25,000       ---  
      25,000       656,692  
Less: unamortized discount     (5,261 )     ---  
Convertible notes payable to related parties, carried at amortized value   $ 19,739     $ 656,692  

 

Amortization of debt discount on such convertible notes payable during the three and six months ended June 30, 2026 and 2025 was as follows:

 

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2026     2025     2026     2025  
                         
Prior Dent Debt   $ ---       157,559     $ ---       516,982  
Convertible note payable to Jason Bishara     2,419       ---       4,439       ---  
Amortization of debt discount   $ 2,419     $ 157,559     $ 4,439     $ 516,982  

 

19

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 10 – AMOUNTS DUE TO RELATED PARTY AND RELATED PARTY TRANSACTIONS (CONTINUED)

 

Repayment

 

The Company made repayments against notes payable to Dr. Dent in the amount of $5,000 and $-0- during the three months ended June 30, 2026 and 2025, respectively, and $39,840 and $-0- during the six months ended June 30, 2026 and 2025, respectively.

 

Interest

 

Interest accrued on notes and convertible notes payable to related parties as of June 30, 2026 and December 31, 2025 was $1,373 and $34,452, respectively. Interest expense on convertible notes payable to related parties was $1,373 and $73,062 during the three months ended June 30, 2026 and 2025, respectively, and $9,430 and $144,443 during the six months ended June 30, 2026 and 2025, respectively. Interest charges on notes payable to Dr. Dent that are carried at fair value, including the February 2026 Dent Note, are reflected as future cash outflows used in estimating the fair value of such instruments, and are therefore reflected through changes in fair value of debt, rather than through interest expense.

 

Undocumented Advances Payable to Dr. Michael Dent

 

From time to time, Dr. Dent has made undocumented cash advances to the Company. Amounts due to Dr. Dent under such undocumented advances as of June 30, 2026 and December 31, 2025 were $465,000 and $319,840, respectively. Advances made by Dr. Dent totaled $420,000 and $-0- in the three months ended June 30, 2026 and 2025, respectively, and $490,000 and $-0- in the six months ended June 30, 2026 and 2025, respectively. Such advances are unsecured, non-interest-bearing and payable on demand.

 

All undocumented advances outstanding as of December, 31, 2025 and a $20,000 advance made on January 14, 2026, along with all convertible notes and deferred compensation payable to Dr. Dent, were refinanced into the February 2026 Dent Note as described above.

 

Deferred Compensation Payable to Dr. Michael Dent

 

As of June 30, 2026 and December 31, 2025, the Company owed Dr. Dent $-0- and $300,600, respectively, related to prior period deferred compensation. This deferred compensation, along with all convertible notes and undocumented advances payable to Dr. Dent, were refinanced into the February 2026 Dent Note as described above.

 

NOTE 11 – NOTES AND CONVERTIBLE NOTES PAYABLE

 

Notes payable as of June 30, 2026 and December 31, 2025 were as follows:

 

    June 30,     December 31,  
    2026     2025  
             
SBA Disaster Relief Loans   $ 450,000     $ 450,000  
Leaf Capital Note Payable, August 2024     9,319       74,550  
1800 Diagonal Note Payable VIII, July 2025     ---       176,061  
1800 Diagonal Note Payable IX, October 2025     27,563       110,252  
Vanquish Note Payable I, November 2025     34,454       137,816  
Jacobs Note Payable, January 2026     25,000       ---  
Evergreen Note Payable, January 2026     240,000       ---  
Vanquish Note Payable II, January 2026     170,016       ---  
Vanquish Note Payable III, June 2026     205,827       ---  
Face value of notes payable     1,162,179       948,679  
Less: unamortized discounts     (134,091 )     (109,027 )
Notes payable, total     1,028,088       839,652  
Less: long term portion     (450,000 )     (450,000 )
Notes payable, current portion   $ 578,088     $ 389,652  

 

20

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 11 – NOTES AND CONVERTIBLE NOTES PAYABLE (CONTINUED)

 

Description of Government Notes Payable

 

During June, July and August 2020, the Company and its subsidiaries received an aggregate of $450,000 in Disaster Relief Loans from the SBA. The loans bear interest at 3.75% per annum and mature 30 years from issuance. Mandatory principal and interest payments were originally scheduled to begin 12 months from the inception date of each loan and were subsequently extended by the SBA until 30 months from the inception date. Installment payments, which are first applied to accrued but unpaid interest and then to principal, began in 2023.

 

Interest accrued on SBA loans as of June 30, 2026 and December 31, 2025 was $20,042 and $21,951, respectively. Interest expense recognized on the loans was $4,161 and $4,207 in the three months ended June 30, 2026 and 2025, respectively, and $8,322 and $8,599 in the six months ended June 30, 2026 and 2025, respectively. Payments against interest were $2,922 and $6,579 in the three months ended June 30, 2026 and 2025, respectively, and $10,232 and $13,158 in the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, remaining principal payments were $450,000 and $450,000, respectively, and the net carrying value was $450,000 and $450,000, respectively.

 

Description of Other Notes Payable

 

On April 24, 2024, the Company issued a promissory note payable (the “April 2024 Note”) to an investor with a stated principal amount of $161,000 and prepaid interest of $19,320 for total repayments of $180,320. The Company received net proceeds of $118,787 after original issue discount of $21,000, fees of $5,000, and withholding of the final payment due on the August 2023 Note to the same investor in the amount of $16,213. The April 2024 Note did not bear interest in excess of the original issue discount and prepaid interest and was scheduled to mature on February 28, 2025. The Company was required to make 10 monthly payments of $18,032 starting May 30, 2024 and ending on February 28, 2025. The April 2024 Note gave the holder a conversion right at a 15% discount to the market price of the Company’s common stock only in the event of default. The Company determined that the fair value of the contingent conversion option was immaterial and therefore did not allocate any value related to the option to the proceeds received. The final installment payment on the April 2024 Note was made in February 2025.

 

On August 1, 2024, the Company’s wholly owned subsidiary, HLYK Florida LLC, which owns NCFM, issued a promissory note payable to an investor with total principal repayments of $223,649 (the “August 2024 Note”). The Company received net proceeds of $200,000 after original issue discount of $19,649 and fees of $4,000. The August 2024 Note does not bear interest in excess of the original issue discount. The Company is required to make 24 monthly payments of $9,319 starting August 20, 2024 and ending on July 20, 2026. The August 2024 Note is secured by all of NCFM’s assets and is personally guaranteed by the Company’s CEO, Dr. Michael Dent. At inception, the Company recorded a discount against the note of $23,649, representing the difference between the total required repayments and the net proceeds received. As of June 30, 2026 and December 31, 2025, remaining principal payments were $9,319 and $74,550, respectively, and the net carrying value was $8,660 and $67,929, respectively. The final payment on the August 2024 Note was subsequently made in July 2026.

 

On January 16, 2025, the Company issued a promissory note payable (the “January 2025 Note I”) to an investor with a stated principal amount of $150,650 and prepaid interest of $18,078 for total repayments of $168,278. The Company received net proceeds of $125,000 after original issue discount of $19,650 and fees of $6,000. The January 2025 Note I did not bear interest in excess of the original issue discount and prepaid interest and was scheduled to mature on November 15, 2025. The Company was required to make 10 monthly payments of $16,873 starting February 15, 2025 and ending on November 15, 2025. The January 2025 Note I gave the holder a conversion right at a 39% discount to the market price of the Company’s common stock only in the event of default. At inception, the Company recorded a discount against the note of $83,643, representing the fair value of the conversion option of $39,915 using a Lattice model and the difference between the total required repayments and the net proceeds received in the amount of $43,728. The conversion option qualified for derivative accounting and bifurcation under ASC 815, “Derivatives and Hedging” (“ASC 815”). The final installment payment on the January 2025 Note I was made in November 2025.

 

21

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 11 – NOTES AND CONVERTIBLE NOTES PAYABLE (CONTINUED)

 

On January 24, 2025, the Company issued a promissory note payable (the “January 2025 Note II”) to an investor with a stated principal amount of $98,900 and prepaid interest of $13,846 for total repayments of $112,746. The Company received net proceeds of $80,000 after original issue discount of $12,900 and fees of $6,000. The January 2025 Note II did not bear interest in excess of the original issue discount and prepaid interest and was scheduled to mature on November 30, 2025. The Company was required to make a payment of $56,373 on July 30, 2025 and monthly installments of $14,093 thereafter ending on November 30, 2025. The January 2025 Note II gave the holder a conversion right at a 39% discount to the market price of the Company’s common stock only in the event of default. At inception, the Company recorded a discount against the note of $48,074, representing the fair value of the conversion option of $15,328 using a Lattice model and the difference between the total required repayments and the net proceeds received in the amount of $32,746. The conversion option qualified for derivative accounting and bifurcation under ASC 815. The final installment payment on the January 2025 Note II was made in December 2025.

 

On February 14, 2025, the Company issued a promissory note payable (the “February 2025 Note”) to an investor with a stated principal amount of $121,900 and prepaid interest of $14,628 for total repayments of $136,528. The Company received net proceeds of $100,000 after original issue discount of $15,900 and fees of $6,000. The February 2025 Note did not bear interest in excess of the original issue discount and prepaid interest and was scheduled to mature on December 15, 2025. The Company was required to make 10 monthly payments of $13,653 starting March 15, 2025 and ending on December 15, 2025. The February 2025 Note gave the holder a conversion right at a 25% discount to the market price of the Company’s common stock only in the event of default. At inception, the Company recorded a discount against the note of $43,302, representing the fair value of the conversion option of $6,774 using a Lattice model and the difference between the total required repayments and the net proceeds received in the amount of $36,528. The discount was amortized over the repayment period. The conversion option qualified for derivative accounting and bifurcation under ASC 815. The final installment payment on the February 2025 Note was made in December 2025.

 

On July 29, 2025, the Company issued a promissory note to an investor with a stated principal amount of $154,440 and prepaid interest of $21,621 for total repayments of $176,061. The Company received net proceeds of $125,000 after original issue discount of $22,240 and fees of $7,200. The note did not bear interest in excess of the original issue discount and prepaid interest and was scheduled to mature on May 30, 2026. The Company was required to make an initial payment of $88,031 on January 30, 2026 and four monthly payments of $22,008 starting February 28, 2026 and ending on May 30, 2026. The note gave the holder a conversion right at a 35% discount to the market price of the Company’s common stock only in the event of default. At inception, the Company recorded a discount against the note of $62,014, representing the fair value of the conversion option of $10,953 using a Lattice model and the difference between the total required repayments and the net proceeds received in the amount of $51,061. The default conversion option qualified for derivative accounting and bifurcation at inception under ASC 815. The final installment payment was made in June 2026. As of June 30, 2026 and December 31, 2025, remaining principal payments were $-0- and $176,061, respectively, and the net carrying value was $-0- and $145,562, respectively.

 

On October 3, 2025, the Company issued a promissory note to an investor with a stated principal amount of $123,050 and prepaid interest of $14,766 for total repayments of $137,816. The Company received net proceeds of $100,000 after original issue discount of $16,050 and fees of $7,000. The note does not bear interest in excess of the original issue discount and prepaid interest and matures on August 15, 2026. The Company is required to make 10 monthly payments of $13,782 starting November 15, 2025 and ending on August 15, 2026. The note gives the holder a conversion right at a 35% discount to the market price of the Company’s common stock only in the event of default. At inception, the Company recorded a discount against the note of $45,676, representing the fair value of the conversion option of $7,860 using a Lattice model and the difference between the total required repayments and the net proceeds received in the amount of $37,816. The default conversion option qualified for derivative accounting and bifurcation at inception under ASC 815. As of June 30, 2026 and December 31, 2025, remaining principal payments were $27,563 and $110,252, respectively, and the net carrying value was $20,914 and $77,441, respectively.

 

On November 10, 2025, the Company issued a second promissory note payable to a different investor with a stated principal amount of $123,050 and prepaid interest of $14,766 for total repayments of $137,816. The Company received net proceeds of $100,000 after original issue discount of $16,050 and fees of $7,000. The note does not bear interest in excess of the original issue discount and prepaid interest and matures on August 30, 2026. The Company is required to make installments starting April 30, 2026 and ending on August 30, 2026. The note gives the holder a conversion right at a 35% discount to the market price of the Company’s common stock only in the event of default. At inception, the Company recorded a discount against the note of $47,356, representing the fair value of the conversion option of $9,520 using a Lattice model and the difference between the total required repayments and the net proceeds received in the amount of $37,816. The default conversion option qualified for derivative accounting and bifurcation at inception under ASC 815. As of June 30, 2026 and December 31, 2025, remaining principal payments were $34,454 and $137,816, respectively, and the net carrying value was $24,599 and $98,720, respectively.

 

22

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 11 – NOTES AND CONVERTIBLE NOTES PAYABLE (CONTINUED)

 

On January 14, 2026, the Company issued to a third-party investor a convertible note with principal of $25,000, an interest rate of 12% per annum, and a maturity date of January 14, 2027. The note is convertible into shares of Company common stock at a fixed conversion price of $3.00 per share. The Company received net proceeds of $25,000. In connection with the note, the Company also issued the investor a five-year warrant to purchase 8,333 shares of Company common stock at an exercise price of $3.00 per share. At inception, the Company recorded a discount against the note of $9,699 for the allocated fair value of the warrant. As of June 30, 2026 and December 31, 2025, remaining principal payments were $25,000 and $-0-, respectively, and the net carrying value was $19,739 and $-0-, respectively.

 

On January 22, 2026, the Company issued a convertible promissory note to an investor with a stated principal amount of $240,000, an interest rate of 12% per annum and maturity upon the earlier of (i) six months from the issue date or upon a US senior exchange listing (the “January 2026 $240k Note”). The note is convertible into shares of Company common stock at a conversion price of $6.07 per share, subject to standard down round adjustment in the event that the Company issues equity instruments at a price lower than the conversion price. The Company received net proceeds of $200,000 after original issue discount of $40,000. The note also gives the holder a conversion right at a 20% discount to the market price of Company common stock only in the event of default. In connection with the note, the Company also issued the investor a five-year warrant to purchase 32,949 shares of Company common stock at an exercise price of $6.07 per share, subject to standard anti-dilution protection. At inception, the Company recorded a discount against the note of $110,880, representing the allocated fair value of the warrant of $44,436, the fair value of the conversion option of $26,443, and the original issue discount of $40,000. The discount is being amortized over the repayment period. The default conversion option qualified for derivative accounting and bifurcation at inception under ASC 815. On February 2, 2026, the Company issued a convertible note to a related party with a conversion price of $4.25, triggering the down round adjustment. As a result, the conversion price of the note was adjusted to $4.25, and the exercise price of the warrant was adjusted to $4.25, and the number of shares of common stock underlying the warrant increased to 47,059. The Company recognized a deemed dividend in the amount of $36,347 to reflect the change in fair value of the fixed conversion feature immediately before and after the down round adjustment to the conversion price. As of June 30, 2026 and December 31, 2025, remaining principal payments were $240,000 and $-0-, respectively, and the net carrying value was $226,523 and $-0-, respectively.

 

On January 27, 2026, the Company issued a promissory note to an investor with a stated principal amount of $151,800 and prepaid interest of $18,216 for total repayments of $170,016. The Company received net proceeds of $125,000 after original issue discount of $19,800 and fees of $7,000. The note does not bear interest in excess of the original issue discount and prepaid interest and matures on November 15, 2026. The Company is required to make an initial payment of $85,008 on July 15, 2026 and four monthly payments of $21,252 starting August 15, 2026 and ending on November 15, 2026. The note gives the holder a conversion right at a 35% discount to the market price of Company common stock only in the event of default. At inception, the Company recorded a discount against the note of $67,092, representing the fair value of the conversion option of $22,076 and the difference between the total required repayments and the net proceeds received in the amount of $45,016. The discount is being amortized over the repayment period. The default conversion option qualified for derivative accounting and bifurcation at inception under ASC 815. As of June 30, 2026 and December 31, 2025, remaining principal payments were $170,016 and $-0-, respectively, and the net carrying value was $138,308 and $-0-, respectively.

 

On June 9, 2026, the Company issued a promissory note to an investor with a stated principal amount of $180,550 and prepaid interest of $25,277 for total repayments of $205,827. The Company received net proceeds of $150,000 after original issue discount of $23,550 and fees of $7,000. The note does not bear interest in excess of the original issue discount and prepaid interest and matures on March 15, 2027. The Company is required to make an initial payment of $102,913 on December 15, 2026 and three monthly payments of $34,304 starting January 15, 2027 and ending on March 15, 2027. The note gives the holder a conversion right at a 35% discount to the market price of Company common stock only in the event of default. At inception, the Company recorded a discount against the note of $71,893, representing the fair value of the conversion option of $16,066 and the difference between the total required repayments and the net proceeds received in the amount of $55,827. The discount is being amortized over the repayment period. The default conversion option qualified for derivative accounting and bifurcation at inception under ASC 815. As of June 30, 2026 and December 31, 2025, remaining principal payments were $205,827 and $-0-, respectively, and the net carrying value was $139,345 and $-0-, respectively.

 

23

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 11 – NOTES AND CONVERTIBLE NOTES PAYABLE (CONTINUED)

 

Notes Payable Activity

 

The Company has issued certain other notes payable to third parties that are recorded at their face value, net of discounts recorded at inception related to original issue discounts, warrants issued with the convertible notes, and derivative embedded conversion features (“ECFs”) in the convertible notes. Such notes payable that are carried at net amortized value were comprised of the following as of June 30, 2026 and December 31, 2025:

 

        Principal Outstanding     Unamortized Discount     Amortized Carrying Value  
Inception   Maturity   June 30,     December 31,     June 30,     December 31,     June 30,     December 31,  
Date   Date   2026     2025     2026     2025     2026     2025  
08/01/24   07/31/26   $ 9,319     $ 74,550     $ (659 )   $ (6,620 )   $ 8,660     $ 67,929  
07/29/25   05/30/26     ---       176,061       ---       (30,499 )     ---       145,562  
10/03/25   08/15/26     27,563       110,252       (6,649 )     (32,812 )     20,914       77,441  
11/10/25   08/30/26     34,454       137,816       (9,855 )     (39,096 )     24,599       98,720  
01/14/26   01/14/27     25,000       ---       (5,261 )     ---       19,739       ---  
01/22/26   07/22/26     240,000       ---       (13,477 )     ---       226,523       ---  
01/27/26   11/15/26     170,016       ---       (31,708 )     ---       138,308       ---  
06/09/26   03/15/27     205,827       ---       (66,482 )     ---       139,345       ---  
        $ 712,179     $ 498,679     $ (134,091 )   $ (109,027 )   $ 578,088     $ 389,652  

 

Amortization of debt discount on such notes payable during the three and six months ended June 30, 2026 and 2025 was as follows:

 

Inception   Maturity   Principal     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
Date   Date   Amount     2026     2025     2026     2025  
04/24/24   02/28/25   $ 180,320     $ ---     $ ---     $ ---     $ 8,772  
08/01/24   07/31/26     223,649       2,997       2,997       5,962       5,962  
01/16/25   11/15/25     168,728       ---       25,715       ---       44,647  
01/24/25   11/30/25     112,746       ---       14,343       ---       23,958  
02/14/25   12/15/25     136,528       ---       13,966       ---       19,372  
07/29/25   05/30/26     176,061       12,200       ---       30,499       ---  
10/03/25   08/15/26     137,816       13,154       ---       26,163       ---  
11/10/25   08/30/26     137,816       14,701       ---       29,241       ---  
01/14/26   01/14/27     25,000       2,418       ---       4,438       ---  
01/22/26   07/22/26     240,000       76,745       ---       97,401       ---  
01/27/26   11/15/26     170,016       20,909       ---       35,384       ---  
06/09/26   03/15/27     205,827       5,411       ---       5,411       ---  
                $ 148,535     $ 57,021     $ 234,499     $ 102,711  

 

Repayments on such notes payable during the three and six months ended June 30, 2026 and 2025 were as follows:

 

Inception   Maturity   Principal     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
Date   Date   Amount     2026     2025     2026     2025  
04/24/24   02/28/25   $ 180,320     $ ---     $ ---     $ ---     $ 36,064  
01/16/25   11/15/25     168,728       ---       50,618       ---       84,364  
02/14/25   12/15/25     136,528       ---       40,959       ---       54,611  
08/01/24   07/31/26     223,649       37,275       27,956       65,231       55,912  
07/29/25   05/30/26     176,061       44,015       ---       176,061       ---  
10/03/25   08/15/26     137,816       41,345       ---       82,689       ---  
11/10/25   08/30/26     137,816       103,362       ---       103,362       ---  
                $ 225,997     $ 119,533     $ 427,343     $ 230,951  

 

Accrued Interest

 

Interest accrued on notes and convertible notes payable to third parties as of June 30, 2026 and December 31, 2025 was $35,908 and $21,990, respectively.

 

24

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 12 – DERIVATIVE FINANCIAL INSTRUMENTS

 

Derivative financial instruments are comprised of the fair value of conversion features embedded in convertible promissory notes for which the conversion rate is not fixed, but instead is adjusted based on a discount to the market price of the Company’s common stock. The fair market value of the derivative liabilities was calculated at inception of each convertible promissory notes for which the conversion rate is not fixed and allocated to the respective convertible notes, with any excess recorded as a charge to “Financing cost.” The derivative financial instruments are then revalued at the end of each period, with the change in value recorded to “Change in fair value of on derivative financial instruments.”

 

Derivative financial instruments and changes thereto recorded in the three and six months ended June 30, 2026 and 2025 include the following:

 

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2026     2025     2026     2025  
                         
Balance, beginning of period   $ 40,196     $ 16,979     $ 23,846     $ ---  
Inception of derivative financial instruments     16,066       ---       64,585       62,017  
Change in fair value of derivative financial instruments     (32,599 )     (694 )     (64,768 )     (45,732 )
Conversion or extinguishment of derivative financial instruments     ---       ---       ---       ---  
                                 
Balance, end of period   $ 23,663     $ 16,285     $ 23,663     $ 16,285  

 

Fair market value of the derivative financial instruments is measured using the following range of assumptions:

 

    Six Months Ended
June 30,
    2026   2025
         
Pricing model utilized   Binomial Lattice   Binomial Lattice
Risk free rate range   3.70% to 4.01%   4.15% to 4.29%
Expected life range (in years)   0.06 to 0.76   0.38 to 0.85
Volatility range   105.92% to 203.08%   164.80% to 196.95%
Dividend yield   0.00%   0.00%

 

The entire amount of derivative instrument liabilities is classified as current due to the fact that settlement of the derivative instruments could be required within twelve months of the balance sheet date.

 

NOTE 13 – SHAREHOLDERS’ DEFICIT

 

Private Placements

 

During the six months ended June 30, 2025, the Company sold 2,000 shares of common stock to one investor in a private placement transaction. The Company received $10,000 in proceeds from the sale. In connection with the stock sales, the Company also agreed to extend the expiration date on 11,765 warrants to purchase shares of common stock at an exercise price of $15.00 per share for an additional two years. The shares were issued in August 2025.

 

The Company had no private placement transactions during the six months ended June 30, 2026.

 

25

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 13 – SHAREHOLDERS’ DEFICIT (CONTINUED)

 

Common Stock Issuable

 

As of June 30, 2026 and December 31, 2025, the Company was obligated to issue the following shares:

 

    June 30, 2026     December 31, 2025  
    Amount     Shares     Amount     Shares  
                         
Shares issuable to employees and consultants   $ 49,510       132,597     $ 49,498       9,931  
Private placement issuable     ---       ---       11,851       12,121  
    $ 49,510       132,597     $ 61,349       22,052  

 

Stock Warrants

 

Transactions involving our stock warrants during the six months ended June 30, 2026 and 2025 are summarized as follows:

 

    2026     2025  
          Weighted           Weighted  
          Average           Average  
          Exercise           Exercise  
    Number     Price     Number     Price  
Outstanding at beginning of the period     804,351     $ 16.31       1,014,888     $ 16.25  
Granted during the period     49,615     $ 5.04       33,400     $ 2.71  
Exercised during the period     ---     $ ---       ---     $ ---  
Expired during the period     (197,127 )   $ (34.80 )     (234,163 )   $ (13.48 )
Down round adjustments during the period     14,110       4.25       ---       ---  
Outstanding at end of the period     670,949     $ 9.70       814,125     $ 16.49  
                                 
Exercisable at end of the period     670,949     $ 9.70       803,001     $ 16.49  
                                 
Weighted average remaining life     5.3 years               4.4 years          

 

The following table summarizes information about the Company’s stock warrants outstanding as of June 30, 2026:

 

Warrants Outstanding      Warrants Exercisable  
            Weighted-                    
            Average     Weighted-           Weighted-  
            Remaining     Average           Average  
Exercise     Number     Contractual     Exercise     Number     Exercise  
Prices     Outstanding     Life (years)      Price     Exercisable     Price  
$ 1.65 to 10.00       459,698       7.0     $ 4.80       459,698     $ 4.80  
$ 10.01 to 25.00       184,434       1.7     $ 15.00       184,434     $ 15.00  
$ 25.01 to 50.00       5,334       0.2     $ 25.00       5,334     $ 25.00  
$ 50.01 to 67.50       21,483       0.2     $ 65.34       21,483     $ 65.34  
$ 1.65 to 67.50       670,949       5.3     $ 9.70       670,949     $ 9.70  

 

26

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 13 – SHAREHOLDERS’ DEFICIT (CONTINUED)

 

During the six months ended June 30, 2026 and 2025, the Company issued 49,615 and 33,400 warrants, respectively, the aggregate grant date fair value of which was $63,834 and $47,751, respectively. There were no warrants exercised during the six months ended June 30, 2026 or 2025. The fair value of the warrants was calculated using the following range of assumptions:

 

    2026   2025
Pricing model utilized   Binomial Lattice   Binomial Lattice
Risk free rate range   3.72% to 3.85%   4.24%
Expected life range (in years)   5.00 years   10.00 years
Volatility range   151.64% to 152.41%   172.21% to 173.27%
Dividend yield   0.00%   0.00%
Expected forfeiture   33.00%   44.00%

 

Equity Incentive Plans

 

On January 1, 2016, the Company adopted the 2016 Equity Incentive Plan (the “2016 EIP”) for the purpose of having equity awards available to allow for equity participation by its employees, consultants and non-employee directors. The 2016 EIP allowed for the issuance of up to 155,037 shares of the Company’s common stock, which may be issued in the form of stock options, stock appreciation rights, or common shares. The 2016 EIP is governed by the Board, or a committee that may be appointed by the Board in the future. The 2016 EIP expired during 2021 but allows for the prospective issuance of common shares upon vesting of stock awards or exercise of stock options granted prior to expiration of the 2016 EIP.

 

On September 9, 2021, the Company adopted the 2021 Equity Incentive Plan (the “2021 EIP” and, together with the 2016 EIP, the “EIPs”) for the purpose of having equity awards available to allow for equity participation by its employees, consultants and non-employee directors. The 2021 EIP allows for the issuance of up to 200,000 shares of the Company’s common stock, which may be issued in the form of stock options, stock appreciation rights, or common shares. The 2021 EIP is governed by the Board, or a committee that may be appointed by the Board in the future.

 

Amounts recognized in the financial statements in the three and six months ended June 30, 2026 and 2025 were as follows:

 

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2026     2025     2026     2025  
Total cost of share-based payment plans during the period   $ 88,237     $ 5,267     $ 385,759     $ 12,393  
Amounts capitalized in deferred equity compensation during period   $ ---     $ ---     $ ---     $ ---  
Amounts written off from deferred equity compensation during period   $ ---     $ ---     $ ---     $ ---  
Amounts charged against income for amounts previously capitalized   $ ---     $ ---     $ ---     $ ---  
Amounts charged against income, before income tax benefit   $ 88,237     $ 5,267     $ 385,759     $ 12,393  
Amount of related income tax benefit recognized in income   $ ---     $ ---     $ ---     $ ---  

 

27

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 13 – SHAREHOLDERS’ DEFICIT (CONTINUED)

 

Stock Options

 

Stock options granted under the EIPs typically vest over a period of three to four years or based on achievement of Company and individual performance goals. The following table summarizes stock option activity as of and for the six months ended June 30, 2026 and 2025:

 

    2026     2025  
          Weighted           Weighted  
          Average           Average  
          Exercise           Exercise  
Stock options   Number     Price     Number     Price  
Outstanding at beginning of period     135,791     $ 4.26       61,574     $ 6.94  
Granted during the period     ---     $ ---       ---     $ ---  
Exercised during the period     ---     $ ---       ---     $ ---  
Forfeited during the period     (4,617 )   $ (9.66 )     (380 )   $ (18.93 )
Outstanding at end of period     131,174     $ 4.07       61,194     $ 6.86  
                                 
Options exercisable at period-end     127,174     $ 4.02       51,694     $ 6.99  

 

As of June 30, 2026, there was $15,932 of total unrecognized compensation cost related to options granted under the EIPs.

 

No options were granted during the six months ended June 30, 2026 or 2025. The total fair value of options vested during the six months ended June 30, 2026 and 2025 was $46,250 and $16,981, respectively. No options were exercised during the six months ended June 30, 2026 or 2025. Stock based compensation expense related to stock options was $19,142 and $5,267 in the three months ended June 30, 2026 and 2025, respectively, and $41,770 and $12,392 in the six months ended June 30, 2026 and 2025, respectively.

 

The fair value of each stock option award is estimated on the date of grant using a binomial lattice option-pricing model based on the assumptions noted in the following table. The Company’s accounting policy is to estimate forfeitures in determining the amount of total compensation cost to record each period. No options were granted during the six months ended June 30, 2026 or 2025.

 

The following table summarizes the status and activity of nonvested options issued pursuant to the EIPs as of and for the six months ended June 30, 2026 and 2025:

 

          Weighted           Weighted  
          Average           Average  
          Grant Date           Grant Date  
Stock options   Shares     Fair Value     Shares     Fair Value  
Nonvested options at beginning of period     33,000     $ 2.23       13,500     $ 4.72  
Granted     ---     $ ---       ---     $ ---  
Vested     (27,000 )   $ (1.71 )     (4,000 )   $ (5.63 )
Forfeited     (2,000 )   $ (5.64 )     ---     $ ---  
Nonvested options at end of period     4,000     $ 3.98       9,500     $ 4.33  

 

28

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 13 – SHAREHOLDERS’ DEFICIT (CONTINUED)

 

Stock Grants  

 

Stock grant awards made under the EIPs typically vest either immediately or over a period of up to four years. The following table summarizes stock grant activity as of and for the six months ended June 30, 2026 and 2025:

 

    2026     2025  
          Weighted           Weighted  
          Average           Average  
          Grant Date           Grant Date  
Stock Grants   Shares     Fair Value     Shares     Fair Value  
Nonvested grants at beginning of period     346,250     $ 1.43       ---     $ ---  
Granted     ---     $ ---       ---     $ ---  
Vested     (99,375 )   $ (1.39 )     ---     $ ---  
Forfeited     ---     $ ---       ---     $ ---  
Nonvested grants at end of period     246,875     $ 1.44       ---     $ ---  

 

As of June 30, 2026, there was $199,062 total unrecognized compensation cost related to stock grants made under the EIPs. The aggregate fair value of share grants that vested during the six months ended June 30, 2026 and 2025 was $138,190 and $-0-, respectively. Stock based compensation expense related to stock grants was $69,095 and $-0- in the three months ended June 30, 2026 and 2025, respectively, and $138,190 and $-0- in the six months ended June 30, 2026 and 2025, respectively.

 

The fair value of each stock grant is calculated using the closing sale price of the Company’s common stock on the date of grant. The Company’s accounting policy is to estimate forfeitures in determining the amount of total compensation cost to record each period.

 

NOTE 14 – COMMITMENTS AND CONTINGENCIES

 

Supplier Concentration

 

The Company relied on a single supplier for the fulfillment of approximately 100% and 98% of its product sales made through MOD in the six months ended June 30, 2026 and 2025, respectively.

 

Service Contracts

 

The Company carries various service contracts on its office buildings and certain copier equipment for repairs, maintenance and inspections. All contracts are short term and can be cancelled.

 

29

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 14 – COMMITMENTS AND CONTINGENCIES (CONTINUED)

 

Employment/Consulting Agreements

 

On July 1, 2016, the Company entered into an employment agreement with Dr. Michael Dent, Chief Executive Officer and a member of the Board of Directors. Dr. Dent’s employment agreement continues until terminated by Dr. Dent or the Company. If Dr. Dent’s employment is terminated by the Company (unless such termination is “For Cause” as defined in his employment agreement), then upon signing a general waiver and release, Dr. Dent will be entitled to severance in an amount equal to 12 months of his then-current annual base salary, as well as the pro-rata portion of any bonus that would be due and payable to him. In the event that Dr. Dent terminates the employment agreement, he shall be entitled to any accrued but unpaid salary and other benefits up to and including the date of termination, and the pro-rata portion of any unvested time-based options up until the date of termination.

 

Litigation

 

From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company’s business. The Company is not aware of any such legal proceedings that will have, individually or in the aggregate, a material adverse effect on its business, financial condition or operating results.

 

NOTE 15 – SEGMENT REPORTING

 

As of June 30, 2026, the Company had three reportable segments that are managed separately because each offers different products and services and requires different operating strategies: (1) Health Services, comprised of a single patient service practice under the NCFM brand that includes the NCFM, AEU and CCN service offerings, (2) Digital Healthcare, which develops and markets the “HealthLynked Network,” an online personal medical information and record archive system, and (3) Medical Distribution, comprised of the operations of MOD, a virtual distributor of discounted medical supplies selling to both consumers and medical practices. During October 2025, the Company sold the assets associated with its BTG practice, which had previously been included in the Health Services segment.

 

The Company’s Chief Executive Officer serves as the Chief Operating Decision Maker (“CODM”). The CODM evaluates the performance of each segment and allocates resources primarily based on segment revenue and segment operating income (loss). Segment operating income (loss) represents revenues less direct operating expenses that are specifically attributable to each segment. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

 

The CODM regularly reviews the following significant expense categories for each reportable segment, which are included in the reported measure of segment operating income (loss): practice salaries and benefits, practice operating costs, cost of product revenue, selling, general and administrative expenses, and depreciation expense.

 

Corporate general and administrative costs, including executive compensation, public company costs, finance, legal, investor relations, and other administrative functions, are allocated entirely to the Digital Healthcare segment because that presentation is consistent with the information regularly reviewed by the CODM for purposes of assessing performance and allocating resources.

 

30

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 15 – SEGMENT REPORTING (CONTINUED)

 

Segment information for the three months ended June 30, 2026 was as follows:

 

    Three Months Ended June 30, 2026  
    Health
Services
    Digital
Healthcare
    Medical
Distribution
    Total  
Revenue                        
Patient service revenue, net   $ 230,515     $ ---     $ ---     $ 230,515  
Subscription revenue     ---       7,187       ---       7,187  
Product revenue     ---       ---       12,128       12,128  
Total revenue     230,515       7,187       12,128       249,830  
                                 
Operating Expenses                                
Practice salaries and benefits     139,223       ---       ---       139,223  
Other practice operating expenses     122,185       ---       ---       122,185  
Cost of product revenue     ---       ---       (520 )     (520 )
Selling, general and administrative expenses     ---       510,458       7,031       517,489  
Depreciation     9,055       1,174       ---       10,229  
Total Operating Expenses     270,463       511,632       6,511       788,606  
                                 
Loss from operations   $ (39,948 )   $ (504,445 )   $ 5,617     $ (538,776 )
                                 
Other Segment Information                                
Loss on change in fair value of debt   $ ---     $ (143,123 )   $ ---     $ (143,123 )
Gain on change in fair value of derivative financial instruments   $ ---     $ 32,599   $ ---     $ 32,599
Amortization of original issue discounts on notes payable   $ (2,998 )   $ (147,956 )   $ ---     $ (150,954 )
Interest expense and other   $ (2,774 )   $ (16,677 )   $ ---     $ (19,451 )

 

31

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 15 – SEGMENT REPORTING (CONTINUED)

 

Segment information for the six months ended June 30, 2026 was as follows:

 

    Six Months Ended June 30, 2026  
    Health
Services
    Digital
Healthcare
    Medical
Distribution
    Total  
Revenue                        
Patient service revenue, net   $ 649,128     $ ---     $ ---     $ 649,128  
Subscription revenue     ---       10,681       ---       10,681  
Product revenue     ---       ---       13,486       13,486  
Total revenue     649,128       10,681       13,486       673,295  
                                 
Operating Expenses                                
Practice salaries and benefits     281,327       ---       ---       281,327  
Other practice operating expenses     222,004       ---       ---       222,004  
Cost of product revenue     ---       ---       8,514       8,514  
Selling, general and administrative expenses     ---       1,355,113       9,657       1,364,770  
Depreciation     33,921       2,348       ---       36,269  
Total Operating Expenses     537,252       1,357,461       18,171       1,912,884  
                                 
Income (loss) from operations   $ 111,876     $ (1,346,780 )   $ (4,685 )   $ (1,239,589 )
                                 
Other Segment Information                                
Gain on extinguishment of debt   $ ---     $ 1,328,069   $ ---     $ 1,328,069
Loss on change in fair value of debt   $ ---     $ (2,323,649 )   $ ---     $ (2,323,649 )
Gain on change in fair value of derivative financial instruments   $ ---     $ 64,768   $ ---     $ 64,768
Amortization of original issue discounts on notes payable   $ (5,962 )   $ (232,976 )   $ ---     $ (238,938 )
Interest expense and other   $ (5,548 )   $ (26,122 )   $ ---     $ (31,670 )
                                 
Identifiable Assets                                
Identifiable assets as of June 30, 2026   $ 87,734     $ 1,497,048     $ 8,208     $ 1,592,990  
Identifiable assets as of December 31, 2025   $ 182,146     $ 1,519,025     $ 1,175     $ 1,702,346  

 

32

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 15 – SEGMENT REPORTING (CONTINUED)

 

Segment information for the three months ended June 30, 2025 was as follows:

 

    Three Months Ended June 30, 2025  
    Health
Services
    Digital
Healthcare
    Medical
Distribution
    Total  
Revenue                        
Patient service revenue, net   $ 572,840     $ ---     $ ---     $ 572,840  
Subscription revenue     ---       7,099       ---       7,099  
Product revenue     ---       ---       12,421       12,421  
Total revenue     572,840       7,099       12,421       592,360  
                                 
Operating Expenses                                
Practice salaries and benefits     285,379       ---       ---       285,379  
Other practice operating expenses     247,395       ---       ---       247,395  
Cost of product revenue     ---       ---       15,978       15,978  
Selling, general and administrative expenses     ---       436,503       15,252       451,755  
Depreciation     26,064       1,174       ---       27,238  
Total Operating Expenses     558,838       437,677       31,230       1,027,745  
                                 
Income (loss) from operations   $ 14,002     $ (430,578 )   $ (18,809 )   $ (435,385 )
                                 
Other Segment Information                                
Gain on extinguishment of debt   $ ---     $ 132,246   $ ---     $ 132,246
Change in fair value of debt   $ ---     $ (105,502 )   $ ---     $ (105,502 )
Gain on change in fair value of derivative financial instruments   $ ---     $ 694   $ ---     $ 694
Amortization of original issue discounts on notes payable   $ (2,998 )   $ (211,582 )   $ ---     $ (214,580 )
Interest expense and other   $ (2,805 )   $ (75,706 )   $ ---     $ (78,511 )

 

33

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 15 – SEGMENT REPORTING (CONTINUED)

 

Segment information for the six months ended June 30, 2025 was as follows:

 

    Six Months Ended June 30, 2025  
    Health
Services
    Digital
Healthcare
    Medical
Distribution
    Total  
Revenue                        
Patient service revenue, net   $ 1,324,855     $ ---     $ ---     $ 1,324,855  
Subscription revenue     ---       16,683       ---       16,683  
Product revenue     ---       ---       25,030       25,030  
Total revenue     1,324,855       16,683       25,030       1,366,568  
                                 
Operating Expenses                                
Practice salaries and benefits     687,745       ---       ---       687,745  
Other practice operating expenses     561,371       ---       ---       561,371  
Cost of product revenue     ---       ---       33,794       33,794  
Selling, general and administrative expenses     ---       1,057,044       24,126       1,081,170  
Depreciation     52,914       2,348       ---       55,262  
Total Operating Expenses     1,302,030       1,059,392       57,920       2,419,342  
                                 
Income (loss) from operations   $ 22,825     $ (1,042,709 )   $ (32,890 )   $ (1,052,774 )
                                 
Other Segment Information                                
Gain on extinguishment of debt   $ ---     $ 174,972   $ ---     $ 174,972
Change in fair value of debt   $ ---     $ (154,688 )   $ ---     $ (154,688 )
Gain on change in fair value of derivative financial instruments   $ ---     $ 45,732   $ ---     $ 45,732
Amortization of original issue discounts on notes payable   $ (5,962 )   $ (613,731 )   $ ---     $ (619,693 )
Interest expense and other   $ 4,267   $ (149,793 )   $ ---     $ (145,526 )
                                 
Identifiable Assets                                
Identifiable assets as of June 30, 2025   $ 334,932     $ 1,512,213     $ 1,305     $ 1,848,450  

 

34

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 16 – FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The carrying amounts of certain financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate their respective fair values due to the short-term nature of such instruments. The Company measures certain financial instruments at fair value on a recurring basis, including certain convertible notes payable and related party loans, which were extinguished and reissued and are therefore subject to fair value measurement, and certain derivative financial instruments arising from conversion features embedded in convertible promissory notes for which the conversion rate was not fixed. All financial instruments carried at fair value fall within Level 3 of the fair value hierarchy as their value is based on unobservable inputs. The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period. This determination requires significant judgments to be made.

 

The following table summarizes the conclusions reached regarding fair value measurements as of June 30, 2026 and December 31, 2025:

 

    As of June 30, 2026     As of December 31, 2025  
    Level 1     Level 2     Level 3     Total     Level 1     Level 2     Level 3     Total  
Liabilities:                                                
Derivative financial instruments     ---       ---       23,663       23,663       ---       ---       23,846       23,846  
Convertible notes payable to related party     ---       ---       6,556,479       6,333,715       ---       ---       4,256,099       4,256,099  
    $ ---     $ ---     $ 6,580,142     $ 6,357,378     $ ---     $ ---     $ 4,279,945     $ 4,279,945  

 

Certain notes payable to a related party carried at fair value and certain derivative financial instruments arising from conversion features embedded in convertible promissory notes are each Level 3 financial instrument that are measured at fair value on a recurring basis. Gains (losses) from the change in fair value of Level 3 financial instruments during the three and six months ended June 30, 2026 and 2025 were as follows:

 

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2026     2025     2026     2025  
                         
Change in fair value of debt   $ (143,123 )   $ (105,502 )   $ (2,323,649 )   $ (154,688 )
Change in fair value of derivative financial instruments   $ 32,599     $ 694     $ 64,768     $ 45,732  
                                 
Total   $ (110,524 )   $ (104,808 )   $ (2,258,881 )   $ (108,956 )

 

35

 

 

HEALTHLYNKED CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026 (UNAUDITED)

 

NOTE 17 – SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events through August 14, 2026, the date of filing of this Quarterly Report on Form 10-Q, and determined that there have been no events that have occurred that would require adjustments to our disclosures in the consolidated financial statements, other than the following:

 

On July 6, 2026, Dr. Michael Dent advanced $50,000 to the Company in the form of an interest-free undocumented advance.

 

Effective July 13, 2026, the Company appointed George O’Leary as its part-time Interim Chief Financial Officer. Mr. O’Leary has served as a director of the Company since August 6, 2014 and previously served as the Company’s Chief Financial Officer from August 6, 2014 until April 4, 2024. Jeremy Daniel also ceased serving as the Company’s Chief Financial Officer and transitioned to a corporate accounting role with the Company.

 

On July 16, 2026, the Company issued a promissory note to an investor with a stated principal amount of $180,550 and prepaid interest of $25,277 for total repayments of $205,827. The Company received net proceeds of $150,000 after original issue discount of $23,550 and fees of $7,000. The note does not bear interest in excess of the original issue discount and prepaid interest and matures on April 15, 2027. The Company is required to make an initial payment of $102,914 on January 15, 2027 and three monthly payments of $34,304 starting February 15, 2027 and ending on April 15, 2027. The note gives the holder a conversion right at a 35% discount to the market price of Company common stock only in the event of default.

 

On July 24, 2026, the Company made the final installment payment on the August 2024 Note.

 

On July 24, 2026, the Company entered into a Convertible Promissory Note Extension Agreement with the holder of the January 2026 $240k Note pursuant to which (i) the principal amount of the January 2026 $240k Note was increased from $240,000 to $318,542, representing the original principal amount of $240,000, accrued interest of $14,834 and a new original issue discount of $63,708, (ii) the interest rate was increased from 12% to 15%, and (iii) the maturity date was extended from July 22, 2026 until November 24, 2026. In connection with the Convertible Promissory Note Extension Agreement, the Company issued to the holder a five-year warrant to purchase 48,264 shares of common stock at an exercise price of $2.75 per share.

 

On August 4, 2026, Dr. Michael Dent advanced $25,000 to the Company in the form of an interest-free undocumented advance.

 

Effective August 1, 2026, the Company agreed to a month-to-month rental on a new office space for its Health Services Division, Digital Healthcare and administrative functions.

 

On August 7, 2026, Dr. Michael Dent advanced $15,000 to the Company in the form of an interest-free undocumented advance.

 

On August 13, 2026, Dr. Michael Dent advanced $100,000 to the Company in the form of an interest-free undocumented advance.

 

36

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Forward-Looking Statements

 

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes appearing elsewhere in this report. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Item 1A. Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q. All amounts in this report are in U.S. dollars, unless otherwise noted.

 

Overview

 

General

 

HealthLynked Corp. (the “Company,” “we,” “our,” or “us”) was incorporated in the State of Nevada on August 4, 2014. We currently operate in three distinct divisions:

 

  Health Services Division: This division is comprised of a single patient service practice under the NCFM brand that includes the combined service offerings of (i) NCFM, a functional medical practice engaged in improving the health of its patients through individualized and integrative health care, (ii) CCN, a primary care providing a comprehensive range of medical services, and (iii) AEU, a minimally and non-invasive cosmetic services. During October 2025, the Company sold the assets associated with its BTG practice, which had previously been included in the Health Services segment.

 

  Digital Healthcare Division: At the forefront of healthcare innovation, this division develops and manages an advanced online concierge medical service. The HealthLynked Network facilitates efficient management of medical records and care, allowing seamless patient appointment scheduling, comprehensive telemedicine services, and a cloud-based system for medical information and records management. It also supports physicians in expanding their practices and acquiring new patients through our robust online scheduling system.

 

  Medical Distribution Division: MedOffice Direct LLC (“MOD”), a part of this division, operates as a virtual distributor of discounted medical supplies to consumers and medical practices nationwide, ensuring timely and cost-effective delivery.

 

Critical accounting policies and significant judgments and estimates

 

For a discussion of our critical accounting policies, see Note 2, “Significant Accounting Policies,” in the Notes to consolidated Financial Statements.

 

The preparation of our consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. Management bases its estimates on historical experience, current conditions and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from these estimates, and such differences could be material to our consolidated financial statements. Critical accounting estimates are those that involve a significant level of estimation uncertainty and have had, or are reasonably likely to have, a material impact on our financial condition or results of operations. Significant estimates used in the preparation of our consolidated financial statements include the following:

 

Derivative Financial Instruments

 

In evaluating our financial instruments, management assesses the terms of debt agreements, equity-linked contracts and other arrangements to determine whether embedded features require bifurcation and separate accounting as derivatives. This assessment involves significant judgment in evaluating contractual terms, including settlement provisions, conversion features, and adjustments to exercise prices or conversion ratios. Management also evaluates whether such instruments qualify for the scope exception for contracts indexed to and settled in the Company’s own stock. Changes in the interpretation of contractual provisions or the issuance of new accounting guidance could result in different conclusions regarding derivative classification.

 

37

 

 

Derivative financial instruments are recorded at fair value, with changes in fair value recognized in earnings. Estimating fair value requires the use of valuation models that incorporate significant assumptions, including expected volatility of the Company’s common stock, risk-free interest rates, expected term, and the probability of certain contingent events occurring. Because many of these inputs are not observable in active markets, the valuations may involve significant management judgment and are typically classified within Level 3 of the fair value hierarchy. Changes in these assumptions could materially affect the fair value of derivative liabilities or assets and result in significant fluctuations in our reported results of operations.

 

Contingent Sale Consideration Receivable

 

The fair value of contingent consideration receivable related to the sale of businesses or assets is estimated using probability-weighted cash flow models. These estimates require significant judgment regarding the likelihood of achieving performance targets, expected timing of payments, discount rates and other factors. We have elected to subsequently treat contingent sale consideration receivable using gain contingency guidance and only record a gain or loss when the contingency is resolved pursuant to EITF 09-4.

 

Inventory Valuation

 

Inventory is stated at the lower of cost or net realizable value. We evaluate inventory quantities on hand relative to expected future demand, product life cycles, technological changes and market conditions. We record reserves for excess, slow-moving or obsolete inventory based on these assessments. Changes in demand forecasts or product pricing could result in additional inventory write-downs.

 

Stock-Based Compensation

 

We measure stock-based compensation expense based on the estimated fair value of equity awards granted to employees and non-employees. Determining the fair value of these awards requires judgment in estimating inputs to valuation models, including expected volatility, expected term, risk-free interest rates and expected forfeiture rates. Changes in these assumptions could materially impact the amount of stock-based compensation expense recognized in our consolidated financial statements.

 

Valuation Allowance on Deferred Tax Assets

 

We evaluate the realizability of our deferred tax assets and record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. This assessment requires significant judgment and involves evaluating both positive and negative evidence, including historical operating results, future taxable income projections, the timing of reversal of temporary differences and available tax planning strategies. Changes in our operating performance or tax planning strategies could result in adjustments to the valuation allowance.

 

Lease Accounting and Incremental Borrowing Rate

 

For leases in which the implicit rate cannot be readily determined, we estimate the incremental borrowing rate used to measure our right-of-use assets and related lease liabilities under ASC 842. Determining the incremental borrowing rate requires judgment and considers factors such as our credit risk, the lease term, economic environment and collateralized borrowing rates available to us.

 

Useful Lives of Property and Equipment

 

Property and equipment are depreciated over their estimated useful lives. Determining the appropriate useful life for an asset requires judgment regarding the expected period over which the asset will provide economic benefit. Changes in technology, market conditions, or usage patterns could result in revisions to estimated useful lives and changes in depreciation expense.

 

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Results of Operations

 

Comparison of Three Months Ended June 30, 2026 and 2025

 

The following table summarizes the changes in our results of operations for the three months ended June 30, 2026 and 2025:

 

   Three Months Ended
June 30,
   Change 
   2026   2025   $   % 
                 
Patient service revenue, net  $230,515   $572,840   $(342,325)   -60%
Subscription revenue   7,187    7,099    88    1%
Product revenue   12,128    12,421    (293)   -2%
Total revenue   249,830    592,360    (342,530)   -58%
                     
Operating Expenses and Costs                    
Practice salaries and benefits   139,223    285,379    (146,156)   -51%
Other practice operating expenses   122,185    247,395    (125,210)   -51%
Cost of product revenue   (520)   15,978    (16,498)   -103%
Selling, general and administrative expenses   517,489    451,755    65,734    15%
Depreciation and amortization   10,229    27,238    (17,009)   -62%
Loss from operations   (538,776)   (435,385)   (103,391)   24%
                     
Other Income (Expenses)                    
Gain on extinguishment of debt   ---    132,246    (132,246)   -100%
Loss on change in fair value of debt   (143,123)   (105,502)   (37,621)   36%
Gain on change in fair value of derivative financial instruments   32,599    694    31,905    4,597%
Amortization of original issue discounts on notes payable   (150,954)   (214,580)   63,626    -30%
Interest expense and other   (19,451)   (78,511)   59,060    -75%
Total other income (expenses)   (280,929)   (265,653)   (15,276)   6%
                     
Net loss  $(819,705)  $(701,038)  $(118,667)   17%

 

Revenue

 

Patient service revenue decreased by $342,325, or 60% year-over-year, from $572,840 in the three months ended June 30, 2025, to $230,515 in the three months ended June 30, 2026, primarily as a result of (i) the downsizing and combination of services offerings for our Health Services Division into a single patient service practice under the NCFM brand in May 2025, representing a year-over-year decline in revenue of $263,623, or 53%, and (ii) the sale of the BTG practice assets in October 2025, representing a year-over-year decline in revenue of $78,702, or 100%. The overall reduction in patient service revenue was offset in part by a corresponding designed reduction in practice operating costs as described below in the fluctuation of “Practice salaries and benefits” and “Other practice operating costs,” which declined by a combined $271,366, or 51%, from the three months ended June 30, 2025 to the three months ended June 30, 2026. 

 

Subscription revenue in the three months ended June 30, 2026 increased by $88, or 1% year-over-year, to $7,187 in the three months ended June 30, 2026, from $7,099 in the three months ended June 30, 2025, due primarily to an increase in HealthLynked Network paid subscriptions in 2026, offset in part by a decrease in such subscriptions that were paired with NCFM membership contracts.

 

Product revenue was $12,128 in the three months ended June 30, 2026, compared to $12,421 in the three months ended June 30, 2025, a decrease of $293, or 2%. Product revenue was earned by the Medical Distribution Division, comprised of the operations of MOD, which decreased due to decreased marketing efforts and demand for our products at our offered price points.

 

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Operating Expenses and Costs

 

Practice salaries and benefits decreased by $146,156 or 51%, to $139,223 in the three months ended June 30, 2026, compared to $285,379 in the three months ended June 30, 2025, primarily as a result of focused cost reduction efforts at all of our practices starting in 2023 and continuing into 2025.

 

Other practice operating costs decreased by $125,210 or 51%, to $122,185 in the three months ended June 30, 2026 from $247,395 in the three months ended June 30, 2025, primarily as a result of focused cost reduction efforts at all of our practices starting in 2023 and continuing into 2025.

 

Cost of product revenue was ($520) in the three months ended June 30, 2026, a decrease of $16,498, or 103%, compared to $15,978 the same period of 2025, due to a supplier credit received in second quarter 2026 and also corresponding to the decline in product sales for the period compared to the same period in the prior year.

 

Selling, general and administrative costs increased by $65,734, or 15%, to $517,489 in the three months ended June 30, 2026 compared to $451,755 in the three months ended June 30, 2025, primarily due to higher stock-based compensation charges by $82,970, offset by lower salaries, office and overhead costs in our corporate function resulting from focused cost cutting efforts.

 

Depreciation and amortization in the three months ended June 30, 2026 decreased by $17,009, or 62%, to $10,229, compared to $27,238 in the three months ended June 30, 2025, primarily as a result of a slightly lower depreciable fixed asset base in the three months ended June 30, 2026.

 

Loss from operations increased by $103,391, or 24%, to $538,776 in the three months ended June 30, 2026 compared to $435,385 in the three months ended June 30, 2025, primarily as a result of lower revenue from our scaled-down patient service practices and higher stock based compensation expense in 2026, offset by reduced practice operating costs and other cash-based corporate overhead costs.

 

Other Income (Expenses)

 

Gain on extinguishment of debt in the three months ended June 30, 2026 was $-0-, compared to $132,246 in the three months ended June 30, 2025. Gain on extinguishment of debt in the three months ended June 30, 2025 resulted from the extension of seven notes payable to Dr. Dent during the quarter. There were no corresponding gains in the three months ended June 30, 2026.

 

Loss on change in fair value of debt in the three months ended June 30, 2026 was $143,123 comprised of a loss from the change in fair value of the February 2026 Dent Note during the three months ended June 30, 2026. Loss on the change in fair value of debt in the three months ended June 30, 2025 was $105,502 related to 13 notes payable to Dr. Michael Dent that were recorded at fair value following extension of the maturity dates of the notes.

 

Gain on change in fair value of derivative financial instruments was $32,599 in the three months ended June 30, 2026, an increase of $31,905, or 4,597%, compared to a gain of $694 in the three months ended June 30, 2025. These gains and losses result from the change in fair value of derivative financial instruments related to beneficial conversion features embedded in third party notes issued during the period. Such derivative financial instruments are revalued at each period end.

 

Amortization of original issue and debt discounts on notes payable and convertible notes in the three months ended June 30, 2026 was $150,954, a decrease of $63,626, or 30%, compared to $214,580 in the three months ended June 30, 2025. Amortization of discounts arose from original issue discounts on notes payable, warrants attached to notes payable, and beneficial conversion features in convertible notes payable. The decrease was due to larger equity-based and original issue discounts offered for notes payable being amortized in 2025, and therefore larger corresponding amortizable discount balances, in 2025 compared to 2026.

 

Interest expense and other decreased by $59,060, or 75%, to $19,451 for the three months ended June 30, 2026, compared to $78,511 in the three months ended June 30, 2025, due primarily to a higher balance of debt issued to our largest debtholder, Dr. Michael Dent, being carried at fair value in 2026. Interest charges are reflected as future cash outflows, and therefore through the change in fair value of debt rather than through interest expense, for instruments carried at fair value.

 

Total other net expenses increased by $15,276, or 6%, to net expense of $280,929 in the three months ended June 30, 2026 compared to net expense of $265,653 in the three months ended June 30, 2025. The change was primarily a result of an absence of gains on extinguishment of debt in 2026 with corresponding gains recognized in 2025 combined with higher losses from the change in fair value of debt from the increase in fair value of the February 2026 Dent Note during the three months ended June 30, 2026, offset by lower debt-related discount amortization and interest charges and increased gains from the change in fair value of derivative financial instruments.

 

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Net loss

 

Net loss increased by $118,667, or 17%, to $819,705 in the three months ended June 30, 2026, compared to net loss of $701,038 in the three months ended June 30, 2025, primarily as a result of (i) lower revenue from our practices, and (ii) gains on extinguishment of debt recognized in 2025 with no corresponding gains in 2026, offset by (iii) reduced practice operating costs resulting from substantial downsizing and cost cutting measures, and (iv) lower debt-related discount amortization and interest charges.

 

Comparison of Six Months Ended June 30, 2026 and 2025

 

The following table summarizes the changes in our results of operations for the six months ended June 30, 2026 and 2025:

 

   Six Months Ended
June 30,
   Change 
   2026   2025   $   % 
                 
Patient service revenue, net  $649,128   $1,324,855   $(675,727)   -51%
Subscription revenue   10,681    16,683    (6,002)   -36%
Product revenue   13,486    25,030    (11,544)   -46%
Total revenue   673,295    1,366,568    (693,273)   -51%
                     
Operating Expenses and Costs                    
Practice salaries and benefits   281,327    687,745    (406,418)   -59%
Other practice operating expenses   222,004    561,371    (339,367)   -60%
Cost of product revenue   8,514    33,794    (25,280)   -75%
Selling, general and administrative expenses   1,364,770    1,081,170    283,600    26%
Depreciation and amortization   36,269    55,262    (18,993)   -34%
Loss from operations   (1,239,589)   (1,052,774)   (186,815)   18%
                     
Other Income (Expenses)                    
Gain on extinguishment of debt   1,328,069    174,972    1,153,097    659%
Loss on change in fair value of debt   (2,323,649)   (154,688)   (2,168,961)   1,402%
Gain on change in fair value of derivative financial instruments   64,768    45,732    19,036    42%
Amortization of original issue discounts on notes payable   (238,938)   (619,693)   380,755    -61%
Interest expense and other   (31,670)   (145,526)   113,856    -78%
Total other income (expenses)   (1,201,420)   (699,203)   (502,217)   72%
                     
Net loss  $(2,441,009)  $(1,751,977)  $(689,032)   39%

 

Revenue

 

Patient service revenue decreased by $675,727, or 51% year-over-year, from $1,324,855 in the six months ended June 30, 2025, to $649,128 in the six months ended June 30, 2026, primarily as a result of (i) the downsizing and combination of services offerings for our Health Services Division into a single patient service practice under the NCFM brand in May 2025, representing a year-over-year decline in revenue of $489,964, or 43%, and (ii) the sale of the BTG practice assets in October 2025, representing a year-over-year decline in revenue of $185,763, or 100%. The overall reduction in patient service revenue was offset in part by a corresponding designed reduction in practice operating costs as described below in the fluctuation of “Practice salaries and benefits” and “Other practice operating costs,” which declined by a combined $745,785, or 60%, from the six months ended June 30, 2025 to the six months ended June 30, 2026.

 

Subscription revenue in the six months ended June 30, 2026 decreased by $6,002, or 36% year-over-year, to $10,681 in the six months ended June 30, 2026, from $16,683 in the six months ended June 30, 2025, due primarily to a decrease in HealthLynked Network paid subscriptions that were paired with NCFM membership contracts.

 

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Product revenue was $13,486 in the six months ended June 30, 2026, compared to $25,030 in the six months ended June 30, 2025, a decrease of $11,544, or 46%. Product revenue was earned by the Medical Distribution Division, comprised of the operations of MOD, which decreased due to decreased marketing efforts and demand for our products at our offered price points.

 

Operating Expenses and Costs

 

Practice salaries and benefits decreased by $406,418, or 59%, to $281,327 in the six months ended June 30, 2026, compared to $687,745 in the six months ended June 30, 2025, primarily as a result of focused cost reduction efforts at all of our practices starting in 2023 and continuing into 2025.

 

Other practice operating costs decreased by $339,367 or 60%, to $222,004 in the six months ended June 30, 2026 from $561,371 in the six months ended June 30, 2025, primarily as a result of focused cost reduction efforts at all of our practices starting in 2023 and continuing into 2025.

 

Cost of product revenue was $8,514 in the six months ended June 30, 2026, a decrease of $25,280, or 75%, compared to $33,794 in the same period of 2025, corresponding to the decline in product sales for the period compared to the same period in the prior year.

 

Selling, general and administrative costs increased by $283,600, or 26%, to $1,364,770 in the six months ended June 30, 2026 compared to $1,081,170 the six months ended June 30, 2025, primarily due to higher stock based compensation charges by $373,366, offset by lower salaries, office and overhead costs in our corporate function resulting from focused cost cutting efforts.

 

Depreciation and amortization in the six months ended June 30, 2026 decreased by $18,993, or 34%, to $36,269, compared to $55,262 in the six months ended June 30, 2025, primarily as a result of a lower depreciable fixed asset base in the six months ended June 30, 2026.

 

Loss from operations increased by $186,815, or 18%, to $1,239,589 in the six months ended June 30, 2026 compared to $1,052,774 in the six months ended June 30, 2025, primarily as a result of lower revenue from our scaled-down patient service practices and higher stock based compensation expense in 2026, offset by reduced practice operating costs and other cash-based corporate overhead costs.

 

Other Income (Expenses)

 

Gain on extinguishment of debt in the six months ended June 30, 2026 was $1,328,069, compared to $174,972 in the six months ended June 30, 2025. Gain on extinguishment of debt in the six months ended June 30, 2026 resulted from the refinancing on February 2, 2026 (the “Dent Refinancing”) of all past outstanding notes with aggregate principal totaling $4,338,192, accrued interest totaling $737,180, undocumented advances totaling $339,840 and accrued compensation liabilities totaling $300,600 payable to Dr. Michael Dent (the “Prior Dent Debt”) into a new consolidated Secured Convertible Promissory Note in the principal amount of $5,715,812 payable to a trust controlled by Dr. Michael Dent (the “February 2026 Dent Note”). Gain on extinguishment of debt in the six months ended June 30, 2025 resulted from the extension of 19 notes payable to Dr. Dent during the period.

 

Loss on change in fair value of debt in the six months ended June 30, 2026 was $2,323,649 comprised of (i) a loss of $1,959,196 from the change in fair value of the February 2026 Dent Note between its issuance date of February 2, 2026 and June 30, 2026, and (ii) a loss of $364,453 from the change in fair value of certain notes payable including in the refinanced Prior Dent Debt between December 31, 2025 and the Dent Refinancing date of February 2, 2026. Loss on the change in fair value of debt in the six months ended June 30, 2025 was $154,688 related to 13 notes payable to Dr. Michael Dent that were recorded at fair value following extension of the maturity dates of the notes.

 

Gain on change in fair value of derivative financial instruments was $64,768 in the six months ended June 30, 2026, an increase of $19,036, or 42%, compared to a gain of $45,732 in the six months ended June 30, 2025. These gains result from the change in fair value of derivative financial instruments related to beneficial conversion features embedded in third party notes issued during the period. Such derivative financial instruments are revalued at each period end.

 

Amortization of original issue and debt discounts on notes payable and convertible notes in the six months ended June 30, 2026 was $238,938, a decrease of $380,755, or 61%, compared to $619,693 in the six months ended June 30, 2025. Amortization of discounts arose from original issue discounts on notes payable, warrants attached to notes payable, and beneficial conversion features in convertible notes payable. The decrease was due to larger equity-based and original issue discounts offered for notes payable being amortized in 2025, and therefore larger corresponding amortizable discount balances, in 2025 compared to 2026.

 

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Interest expense and other decreased by $113,856, or 78%, to $31,670 for the six months ended June 30, 2026, compared to $145,526 in the six months ended June 30, 2025, due primarily to a higher balance of debt issued to our largest debtholder, Dr. Michael Dent, being carried at fair value in 2026. Interest charges are reflected as future cash outflows, and therefore through the change in fair value of debt rather than through interest expense, for instruments carried at fair value.

 

Total other net expenses increased by $502,217, or 72%, to net expense of $1,201,420 in the six months ended June 30, 2026 compared to net expense of $699,203 in the six months ended June 30, 2025. The change was primarily a result of an increased loss on change in fair value of debt from the increase in fair value of the February 2026 Dent Note during the six months ended June 30, 2026, offset by higher gains on extinguishment of debt related to the Dent Refinancing in 2026, lower debt-related discount amortization and lower interest charges.

 

Net loss

 

Net loss increased by $689,032, or 39%, to $2,441,009 in the six months ended June 30, 2026, compared to net loss of $1,751,977 in the six months ended June 30, 2025, primarily as a result of (i) increased loss on change in fair value of debt from the increase in fair value of the February 2026 Dent Note during the six months ended June 30, 2026, (ii) lower revenue from our practices, and (iii) higher stock-based compensation expense, offset by (iv) higher gains on extinguishment of debt related to the Dent Refinancing, (v) reduced practice operating costs resulting from substantial downsizing and cost cutting measures, and (vi) and lower debt-related discount amortization and interest charges.

 

Seasonal Nature of Operations

 

We do not experience any material seasonality related to any of our operations.

 

Liquidity and Capital Resources

 

Liquidity Condition

 

During the 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This update provided U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. Under this standard, we are required to evaluate whether there is substantial doubt about our ability to continue as a going concern each reporting period, including interim periods. In evaluating our ability to continue as a going concern, management considered the conditions and events that could raise substantial doubt about our ability to continue as a going concern within 12 months after our financial statements were issued (August 14, 2026), or through August 14, 2027.

 

Management considered our current financial condition and liquidity sources, including current funds available, forecasted future cash flows and our obligations due before August 14, 2027 and concluded that, without additional funding, we will not have sufficient funds to meet our obligations within one year from the date the consolidated financial statements were issued. Without raising additional capital, there is substantial doubt about our ability to continue as a going concern through August 14, 2027. The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern. This basis of presentation contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business.

 

We are subject to a number of risks, including uncertainty related to product development and generation of revenues and positive cash flow from our Digital Healthcare Division and a dependence on outside sources of capital. The attainment of profitable operations is dependent on future events, including obtaining adequate financing to fulfill our growth and operating activities and generating a level of revenues adequate to support our cost structure.

 

As of June 30, 2026, we had cash balances of $12,844, a working capital deficit of $7,351,419 and an accumulated deficit of $53,016,574. For the six months ended June 30, 2026, we had a net loss of $2,441,009 and used cash from operating activities of $572,109. We expect to continue to incur net losses and have significant cash outflows for at least the next 12 months.

 

Significant Liquidity Transactions

 

Through June 30, 2026, we have funded our operations principally through a combination of sales of our common stock, convertible and non-convertible promissory notes, government issued debt, and related party debt, as described below.

 

During the six months ended June 30, 2026, we issued new convertible notes payable to, and received advances from, related parties for aggregate net cash proceeds of $515,000 and refinanced existing notes payable to our CEO, Dr. Michael Dent, with an aggregate principal value of $4,338,192. We also made repayments on notes payable to related parties and third parties totaling $467,183 in the six months ended June 30, 2026.

 

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On February 2, 2026, we refinanced all past outstanding notes with aggregate principal totaling $4,338,192, accrued interest totaling $737,180, undocumented advances totaling $339,840 and accrued compensation liabilities totaling $300,600 into the February 2026 Dent Note in the principal amount of $5,715,812. The February 2026 Dent Note accrues interest at a rate of 12% per year and matures on February 2, 2029, at which time all outstanding principal and interest is due. The February 2026 Dent Note is convertible into shares of common stock at any time at the holder’s discretion at a conversion price of $4.25 per share, subject to adjustment in the event of a future offering by us at a price lower than the conversion price.

 

On February 9, 2026, we filed a Form S-1 registration statement with the SEC for the sale of up to $7,500,000 in shares of our common stock at a proposed offering price between $4.00 and $6.00 per share (the “Common Stock Offering”). On April 30 and May 29, 2026, we filed amendments to the Form S-1. Any proceeds from the offering are subject to effectiveness of the Registration Statement and demand from the market to purchase our common stock.

 

Without raising additional capital, whether via the sale of equity or debt instruments, from proceeds from the Common Stock Offering, from receipt of remaining contingent consideration related to the sale of AHP, from the sale of our current practices, or from other sources, there is substantial doubt about our ability to continue as a going concern through August 14, 2027. The accompanying condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. This basis of presentation contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business.

 

Plan of operation and future funding requirements

 

Our plan of operations is to profitably operate our Health Services business and continue to invest in our Digital Healthcare business, including our cloud-based online personal medical information and record archiving system, the “HealthLynked Network.”

 

Our business model employs both consumer (B2C) and enterprise (B2B) revenue streams, driven by patient subscriptions, telemedicine services, appointment booking fees for in-network providers, and strategic partnerships with insurers, employers, and research organizations. Beyond individual patients and providers, HealthLynked’s business model can extend to strategic partnerships with insurance companies, large employers, pharmaceutical companies, and medical research organizations. If we fail to complete the development of, or successfully market, the HealthLynked Network, our ability to realize future increases in revenue and operating profits could be impacted, and our results of operations and financial position would be materially adversely affected.

 

We plan to raise additional capital to fund our ongoing plan of operation.

 

Historical Cash Flows

 

Cash flows during the six months ended June 30, 2026 and 2025 were as follows:

 

   Six Months Ended
June 30,
 
   2026   2025 
Net cash (used in) provided by:        
Operating activities  $(572,109)  $(850,089)
Investing activities   ---    --- 
Financing activities   547,817    794,049 
Net increase (decrease) in cash  $(24,292)  $(56,040)

 

Operating Activities – During the six months ended June 30, 2026, we used cash from operating activities of $572,109, as compared with $850,089 in the six months ended June 30, 2025. The decrease in cash usage results primarily from cost reduction efforts at our Health Services practices and corporate office.

 

Investing Activities – We did not have any cash flows from investing activities during the six months ended June 30, 2026 or 2025.

 

Financing Activities – During the six months ended June 30, 2026 and 2025, we received cash of $547,817 and $794,049, respectively, from financing activities. Cash provided by financing activities in 2026 was comprised of $500,000 from the issuance of notes payable to third parties and $515,000 from the issuance of notes payable to, and advances from, related parties, offset by $467,183 repayments made against notes payable balances to third parties and related party advances. During the six months ended June 30, 2025, cash provided by financing activities was $794,049, comprised of $10,000, from the sale of common stock, $305,000 from the issuance of notes payable to third parties and $710,000 from the issuance of notes payable to related parties, offset by $230,951 repayments made against notes payable balances to third parties.

 

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Exercise of Warrants and Options

 

No warrants or options were exercised during the six months ended June 30, 2026 or 2025.

 

Other Outstanding Obligations at June 30, 2026

 

As of June 30, 2026, 670,949 shares of our common stock are issuable pursuant to the exercise of warrants with exercise prices ranging from $1.65 to $67.50.

 

As of June 30, 2026, 131,174 shares of our common stock are issuable pursuant to the exercise of options with exercise prices ranging from $2.20 to $16.10.

 

As of June 30, 2026, 246,875 shares of our common stock are issuable pursuant to future vesting of stock grants.

 

As of June 30, 2026, 132,597 shares of our common stock were earned but unissued pursuant to consulting agreements and earned but unissued stock grants.

 

As of June 30, 2026, 1,409,836 shares of our common stock are issuable upon the conversion of outstanding convertible notes payable at the option of the beneficial holders of those instruments, including related parties Dr. Michael Dent and Jason Bishara.

 

Off Balance Sheet Arrangements

 

We did not have, during the periods presented, and we do not currently have, any off-balance sheet arrangements, as defined under applicable Securities and Exchange Commission rules.

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

The Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined in Rule 229.10(f)(1).

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to ensure that information required to be disclosed in Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

As previously disclosed in Part II, Item 9A, “Controls and Procedures,” of our Annual Report on Form 10-K for the year ended December 31, 2025, management identified material weaknesses in our internal control over financial reporting, including that we do not have written documentation of our internal control policies and procedures. Our management evaluated, with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures as of June 30, 2026 based on the framework in “Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in 2013. Based on that evaluation, and in light of the material weaknesses found in our internal controls over financial reporting, our management concluded that our disclosure controls and procedures were not effective as of June 30, 2026.

 

Remediation of Material Weaknesses

 

To remediate the material weakness in our documentation of internal controls we intend to formally document the design of our internal control policies and procedures when resources allow. To remediate the material weakness regarding adjusting journal entries, we intend to implement internal control procedures related to the affected areas, which include intangible asset valuation and recognition of contract liabilities at certain of our patient service facilities.

 

Changes in Internal Control over Financial Reporting

 

There was no change in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the fiscal quarter ended June 30, 2026 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

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PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings

 

From time to time, we may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

 

We are not aware of any such legal proceedings that we believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results.

 

Item 1A. Risk Factors

 

The Company is not required to provide the information required by this item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

Except as previously disclosed in a Current Report on Form 8-K or in a Form 10-Q or 10-K, or as set forth below, the Company has not sold securities that were not registered under the Securities Act of 1933, as amended (the “Securities Act”), during the period covered by this report:

 

On June 9, 2026, we issued a promissory note to an investor with a stated principal amount of $180,550 and prepaid interest of $25,277 for total repayments of $205,827. We received net proceeds of $150,000 after original issue discount of $23,550 and fees of $7,000. The note does not bear interest in excess of the original issue discount and prepaid interest and matures on March 15, 2027. We are required to make an initial payment of $102,913 on December 15, 2026 and three monthly payments of $34,304 starting January 15, 2027 and ending on March 15, 2027. The note gives the holder a conversion right at a 35% discount to the market price of our common stock only in the event of default.

 

The sales of the above securities were exempt from registration under the Securities Act in reliance upon Section 4(a)(2) of the Securities Act, as transactions by an issuer not involving any public offering. The recipients of the securities in each of these transactions represented their intentions to acquire the securities for investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends were placed upon the stock certificates issued in these transactions.

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

During the quarter ended June 30, 2026, none of our directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, or the Exchange Act) adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (as such terms are defined under Item 408 of Regulation S-K).

 

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Item 6. Exhibits

 

Exhibit No.   Exhibit Description
10.1   Interim Chief Financial Officer Consulting Engagement Letter (Filed as Exhibit 10.1 to the Company’s Form 8-K filed with the Commission on July 16, 2026)
31.1*   Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer
31.2*   Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of the Principal Financial Officer and Principal Accounting Officer
32.1*   Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer
32.2*   Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of the Principal Financial Officer and Principal Accounting Officer
101*   Inline XBRL Instance Document
    Inline XBRL Taxonomy Extension Schema Document
    Inline XBRL Taxonomy Extension Calculation Linkbase Document
    Inline XBRL Taxonomy Extension Definition Linkbase Document
    Inline XBRL Taxonomy Extension Label Linkbase Document
    Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*   Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

*Filed herewith.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

Dated: August 14, 2026

 

  HEALTHLYNKED CORP.
   
  By: /s/ Michael Dent
    Name: Michael Dent
    Title: Chief Executive Officer and Chairman (Principal Executive Officer)

 

  By: /s/ George O’Leary
    Name: George O’Leary
    Title: Interim Chief Financial Officer and Principal Financial Officer

 

 

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