Financial Analysis

12 Commitments and Contingencies Purchase commitments. We had various purchase orders for goods or services totaling approximately $7,523,859 and $8,217,571 as of December 31, 2024 and 2023, respectively. No amounts related to these purchase orders have been recognized in our balance sheet. Indemnifications. Under our amended and restated bylaws, we have agreed to indemnify our officers and directors for certain events or occurrences arising as a result of the officer or director serving in such capacity. We have a director and officer liability insurance policy that limits our exposure under these indemnifications and enables us to recover a portion of any future loss arising out of them. In addition, in the normal course of business, we enter into contracts that contain indemnification clauses whereby the Company indemnifies our customers against damages associated with product failures. We have determined that these agreements fall within the scope of ASC 460, Guarantees . We have obtained liability insurance providing coverage that limits our exposure for these indemnified matters. We have not incurred costs to defend lawsuits or settle claims related to these indemnities. We believe the estimated fair value of these indemnities is immaterial and have not recorded a liability for these agreements as of December 31, 2024. Legal matters. We may from time to time become a party to various legal proceedings or claims that arise in the ordinary course of business. …

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"Year Ended December 31, 2024 2023 United States $ 60,606,884 $ 52,525,449 International 12,635,237 13,036,847 Total revenue $ 73,242,121 $ 65,562,296 Year Ended December 31, 2024 2023 Devices: MRI Compatible Intravenous (""IV"") Infusion Pump Systems $ 26,598,792 $ 19,611,128 MRI Compatible Patient Vital Signs Monitoring Systems 24,411,777 25,414,537 Ferro Magnetic Detection Systems 909,615 944,793 Total Devices revenue 51,920,184 45,970,458 Disposables, services and other 19,072,795 17,578,366 Amortization of extended warranty agreements 2,249,142 2,013,472 Total revenue $ 73,242,121 $ 65,562,296" …

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7 Stock-Based Compensation In April 2014, our Board of Directors adopted and our stockholders approved the 2014 Equity Incentive Plan (2014 Plan). Upon adoption and approval of the 2014 Plan, the previous equity incentive plan was terminated and the remaining shares available for future awards were canceled. The 2014 Plan initially reserved 1,000,000 shares of our common stock for awards of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, RSUs, performance awards and other stock-based and cash awards. On June 12, 2020, the stockholders approved an amendment to the 2014 Plan, which reserved an additional 1,000,000 shares of our common stock for the various equity awards mentioned above. The 2014 Plan expired in April 2024 and the remaining shares available for granting future awards were cancelled. On June 15, 2023, our Board of Directors adopted, and our stockholders approved the 2023 Equity Incentive Plan (2023 Plan). The 2023 Plan reserves 1,500,000 shares of our common stock for awards of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, RSUs, performance awards and other stock-based awards. As of December 31, 2024, there were 1,309,213 shares available for future granting and vesting of awards under the 2023 Plan. The 2023 Plan will expire on June 15, 2033, when any remaining shares available for future awards will be cancelled. Stock-based compensation was recognized as fol …

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9 Income Taxes The components of the provision for income taxes are as follows: Year Ended December 31, 2024 2023 Current taxes: U.S. federal $ 4,495,672 $ 4,691,517 State 1,238,323 1,273,073 Foreign 5,090 2,835 Total current tax expense 5,739,085 5,967,425 Deferred taxes: U.S. federal (595,877) (1,195,888) State (101,775) (226,057) Total deferred tax expense (697,652) (1,421,945) Provision for income tax expense $ 5,041,433 $ 4,545,480 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the deferred tax assets and liabilities were as follows: As of December 31, 2024 2023 Deferred income tax assets (liabilities): Stock compensation $ 406,030 $ 163,084 Deferred revenue 642,867 756,267 Reserves and allowances 439,800 607,273 Depreciation and amortization (390,800) (495,359) Capitalized research and development 1,721,199 1,091,003 Other, net 1,372 548 Total deferred income taxes, net $ 2,820,468 $ 2,122,816 A reconciliation of the statutory U.S. federal tax rate to our effective rate is as follows: Year Ended December 31, 2024 2023 Statutory U.S. federal tax rate 21.0 % 21.0 % Stock compensation expense and tax windfalls upon exercises and vesting (1.0) (0.9) State taxes, net of federal benefit 3.6 4.8 Permanent items 0.3 0.4 Provision to return adjustments, net (0.4) (1.7) Foreign derived intan …

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10 Leases We have entered into operating lease contracts for our plant and office space and various office equipment. We have three material lease contracts outstanding. In January 2014, we entered into a non-cancelable operating lease, commencing July 1, 2014, for our manufacturing and headquarters facility in Winter Springs, Florida owned by Susi, LLC, an entity controlled by our President, Chief Executive Officer, and Chairman of the Board, Roger Susi. Pursuant to the terms of our lease for this property, the monthly base rent is $34,133, adjusted annually for changes in the consumer price index. For the year ended December 31, 2024 and 2023, the Company paid Susi, LLC $518,348 and $626,239 respectively related to this lease. Under the terms of the lease, we are responsible for property taxes, insurance and maintenance expenses. On May 29, 2024, the Company entered into a lease amendment (the Lease Amendment) with Susi, LLC under which it did not exercise the second five-year option because of the Companys continued construction of a new corporate office and manufacturing facility in Orange County, Florida, to accommodate our increased operations and anticipated growth. Pursuant to the terms of the Lease Amendment, the monthly base rent is $34,133, adjusted annually for changes in the consumer price index, and the Lease Amendment has an expiration date of May 31, 2025, and includes an option to renew on a month-to-month basis for up to six months thereafter. This Lease Ame …

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"Recent Accounting Pronouncements Accounting Pronouncements Implemented in 2024 In November 2023, the FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures. The FASB amended the guidance in ASC 280, Segment Reporting (""ASC 280""), to require a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures required under ASC 280. The guidance is applied retrospectively to all periods presented in financial statements, unless it is impracticable. This new guidance is effective for public business entities for annual periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. The Company adopted this new standard effective December 31, 2024. See Note 6, Segment Information, for disclosures related to the adoption of ASU 2023-07. Recently Issued Accounting Pronouncements to be Implemented In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740). The update enhances the disclosure requirements related to tax rate reconciliations and income taxes paid. The standard will take effect for public business entities for annual periods beginning after December 15, 2024. We are currently evaluating the impact …

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11 Employee Benefit Plan We sponsor a 401(k) tax-deferred savings plan under which eligible employees may elect to have a portion of their salary deferred and contributed to the plan. Employer matching contributions are determined by management and are discretionary. Employer matching contributions were $583,637 and $540,503 for the year ended December 31, 2024, and 2023, respectively. Employer contributions vest immediately. …

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"2 Revenue Disaggregation of Revenue We disaggregate revenue from contracts with customers by geographic region and revenue type as we believe it best depicts the nature, amount, timing and uncertainty of our revenue and cash flow. Revenue information by geographic region is as follows: Year Ended December 31, 2024 2023 United States $ 60,606,884 $ 52,525,449 International 12,635,237 13,036,847 Total revenue $ 73,242,121 $ 65,562,296 Revenue information by type is as follows: Year Ended December 31, 2024 2023 Devices: MRI Compatible Intravenous (""IV"") Infusion Pump Systems $ 26,598,792 $ 19,611,128 MRI Compatible Patient Vital Signs Monitoring Systems 24,411,777 25,414,537 Ferro Magnetic Detection Systems 909,615 944,793 Total Devices revenue 51,920,184 45,970,458 Disposables, services and other 19,072,795 17,578,366 Amortization of extended warranty agreements 2,249,142 2,013,472 Total revenue $ 73,242,121 $ 65,562,296 Contract Liabilities Our contract liabilities consist of: As of December 31, 2024 2023 Advance payments from customers $ 88,099 $ 508,956 Shipments in-transit 2,387 15,438 Extended warranty agreements 5,162,417 4,835,966 Total $ 5,252,903 $ 5,360,360 Changes in the contract liabilities during the period are as follows: Deferred Revenue Contract liabilities, December 31, 2023 $ 5,360,360 Increases due to cash received from customers 4,452,412 Decreases due to recognition of revenue (4,559,869) Contract liabilities, December 31, 2024 $ 5,252,903 Capitalized Co …

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6 Segment Reporting The Company operates in one business segment that develops, manufactures, markets and distributes MRI compatible medical devices and related accessories, disposables and services relating to them. The determination of a single business segment is consistent with the consolidated financial information regularly provided to the Companys appointed chief operating decision maker (CODM), who is President, Chief Executive Officer, and Chairman of the Board of Directors, Roger Susi. As the Company has only one operating segment and is managed on a consolidated basis, the measure of profit or loss is consolidated net income or loss. See the Consolidated Statements of Operations. …

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13 Capital Stock The rights and privileges of our Series A Preferred Stock and Common Stock are as follows: Series A Preferred Stock We are authorized to issue 3,500,000 shares of preferred stock, of which 800,000 of these shares shall be designated as Series A Preferred Stock (Preferred Stock) with a par value of $0.0001 per share. As of December 31, 2024, there was no preferred stock issued or outstanding. Voting and Dividends. The holder of each share of Preferred Stock has the right to one vote for each share of Common Stock into which such Preferred Stock could then be converted. The holders of the Preferred Stock are entitled to receive dividends from legally available assets prior to any declaration or payment of dividends to the holders of Common Stock. Dividends on each share of Preferred Stock are initially at $0.06429 per year payable when and as declared by the Board and are non-cumulative. After payment of such dividends, any additional dividends or distributions are distributed among all holders of Common Stock and Preferred Stock in proportion to the number of shares of Common Stock that would be held by each holder if all shares of Preferred Stock were converted to Common Stock at the then effective conversion rate. To date, no dividends have been declared. Liquidation. In the event of any liquidation, dissolution or winding up of our Company, either voluntary or involuntary, the holders of the Preferred Stock are entitled to receive, prior and in preference t …

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14 Subsequent Events In February 2025, our Board of Directors declared a regular quarterly cash dividend of $0.17 per share of our outstanding common stock, payable on March 5, 2025, to stockholders of record as of the close of business on February 24, 2025. Total payment for this cash dividend was $2,161,522. …

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Commitments and Contingencies Purchase commitments. We had various purchase orders for goods or services totaling $11,020 thousand and $9,827 thousand as of June 30, 2026 and December 31, 2025, respectively. Amounts recognized on our balance sheets related to these purchase orders were immaterial. Legal matters. From time to time, the Company is party to litigation and other legal matters incidental to the conduct of its business. Such matters are subject to many uncertainties and outcomes cannot be predicted with assurance. The Company accrues liabilities for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. As of June 30, 2026, the Company was not involved in any such matters, individually or in the aggregate, which management believes would have a material adverse effect on the Companys business, financial condition, results of operations, or cash flows. …

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"Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) (unaudited) (unaudited) United States $ 16,721 $ 18,190 $ 34,745 $ 34,143 International 3,745 2,219 7,699 5,777 Total revenue $ 20,466 $ 20,409 $ 42,444 $ 39,920 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) (unaudited) (unaudited) Devices: MRI Compatible Intravenous (""IV"") Infusion Pump Systems $ 6,428 $ 8,188 $ 14,092 $ 14,187 MRI Compatible Patient Vital Signs Monitoring Systems 6,665 5,944 13,772 12,489 Ferro Magnetic Detection Systems 756 482 1,377 900 Total devices revenue 13,849 14,614 29,241 27,576 Amortization of extended maintenance agreements 758 592 1,417 1,153 Disposables 4,793 4,204 9,678 9,151 Services and other 1,066 999 2,108 2,040 Total revenue $ 20,466 $ 20,409 $ 42,444 $ 39,920"

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Stock-Based Compensation Stock-based compensation was recognized as follows in the unaudited Condensed Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) (unaudited) (unaudited) Cost of revenue $ 71 $ 71 $ 140 $ 143 General and administrative 477 438 865 957 Sales and marketing 178 120 336 255 Research and development 81 102 150 202 Total $ 807 $ 731 $ 1,491 $ 1,557 As of June 30, 2026, we had (i) $4,383 thousand of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.38 years and (ii) $529 thousand of unrecognized compensation cost related to unvested performance-based restricted stock units, which is expected to be recognized over a weighted-average period of 1.25 years. The following table presents a summary of our equity award activity for the six months ended June 30, 2026: Six Months Ended June 30, 2026 (shares in thousands) Restricted Stock Units Performance Based Restricted Stock Units Outstanding beginning of period 83 25 Awards granted 17 Awards exercised/vested (8) Awards canceled/ forfeited (1) Outstanding end of period 91 25 …

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Fair Value Measurements The fair values of cash equivalents, accounts receivables, net, and accounts payable approximate their carrying amounts due to their short duration. As of June 30, 2026, we did not have any assets or liabilities subject to recurring fair value measurements.

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Income Taxes For the three and six months ended June 30, 2026, we recorded a provision for income tax expense of $1,670 thousand and $3,621 thousand, respectively. For the three and six months ended June 30, 2026, our effective tax rate was 24.2% and 24.7%, respectively, and differed from the U.S. federal statutory rate primarily due to U.S. state income tax expense, and non-deductible compensation expenses, partially offset by benefits from research and development tax credits. For the three and six months ended June 30, 2025, we recorded a provision for income tax expense of $1,553 thousand and $2,811 thousand, respectively. For the three and six months ended June 30, 2025, our effective tax rate was consistent at 21.2%, and differed from the U.S. federal statutory rate primarily due to U.S. state income tax expense, partially offset by benefits from research and development tax credits. We file tax returns in the U.S. federal jurisdiction and many U.S. state jurisdictions. Our returns are not currently under examination by the Internal Revenue Service. The Company remains subject to income tax examinations for our U.S. federal and certain U.S. state income taxes for 2023 and subsequent years. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the U.S. The OBBBA includes several significant provisions, including the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the r …

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"2 Revenue Recognition Disaggregation of Revenue We disaggregate revenue from contracts with customers by geographic region and revenue type as we believe it best depicts the nature, amount, timing and uncertainty of our revenue and cash flow. Revenue information by geographic region is as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) (unaudited) (unaudited) United States $ 16,721 $ 18,190 $ 34,745 $ 34,143 International 3,745 2,219 7,699 5,777 Total revenue $ 20,466 $ 20,409 $ 42,444 $ 39,920 Revenue information by type is as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) (unaudited) (unaudited) Devices: MRI Compatible Intravenous (""IV"") Infusion Pump Systems $ 6,428 $ 8,188 $ 14,092 $ 14,187 MRI Compatible Patient Vital Signs Monitoring Systems 6,665 5,944 13,772 12,489 Ferro Magnetic Detection Systems 756 482 1,377 900 Total devices revenue 13,849 14,614 29,241 27,576 Amortization of extended maintenance agreements 758 592 1,417 1,153 Disposables 4,793 4,204 9,678 9,151 Services and other 1,066 999 2,108 2,040 Total revenue $ 20,466 $ 20,409 $ 42,444 $ 39,920 Contract Liabilities Our contract liabilities consist of: June 30, 2026 December 31, 2025 (in thousands) (unaudited) (audited) Advance payments from customers $ 346 $ 486 Shipments in-transit 108 93 Extended maintenance agreements 7,078 6,270 Total $ 7,532 $ 6,849 Changes in the contract liabilities during the peri …

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Segment Reporting The Company operates in one business segment that develops, manufactures, markets, sells, and distributes MRI compatible medical devices, related accessories, disposables and services relating to them. The determination to operate as a single business segment is consistent with the consolidated financial information regularly provided to the Companys appointed chief operating decision maker (CODM), the President, Chief Executive Officer, and Chairman of the Companys Board of Directors (the Board), Roger Susi. As the Company has only one operating segment and is managed on a consolidated basis, the measure of profit or loss is consolidated net income or loss. The accounting policies for our segment are the same as those described in Note 1 - Organization and Significant Accounting Policies in our 2025 Annual Report, and in Note 1 above. See the Condensed Statements of Operations. …

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Subsequent Events On July 30, 2026, the Board declared a regular quarterly cash dividend of $0.20 per share of outstanding common stock . The dividend is payable to stockholders of record as of the close of business on August 14, 2026 and will be paid on August 28, 2026. Except as described above and elsewhere in this Quarterly Report, there were no subsequent events requiring disclosure or recognition in the Companys unaudited condensed financial statements …

SubsequentEventsTextBlock · excerpt; the full note is in the filing