Second Quarter 2026
Filed Aug 18, 2026DataMeds AI Reports Second Quarter 2026 Financials and Provides Business Update
Net revenues were reported up 14% sequentially to $1.779 million, but quarterly revenue and gross profit were substantially below the prior-year period, while net loss widened to $18.363 million amid $8.882 million of debt-extinguishment expense, $766,394 of contract-termination expense, and higher general and administrative expense.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenues, three months ended June 30, 2026GAAP | $1,779,860 | 14% | – |
| Net revenues, six months ended June 30, 2026GAAP | $3,339,423 | – | – |
| Cost of net revenues, three months ended June 30, 2026GAAP | $1,597,656 | – | – |
| Cost of net revenues, six months ended June 30, 2026GAAP | $2,986,998 | – | – |
| Gross profit, three months ended June 30, 2026GAAP | $182,204 | – | – |
| Gross profit, six months ended June 30, 2026GAAP | $352,425 | – | – |
| General and administrative expense, three months ended June 30, 2026GAAP | $7,056,671 | – | – |
| General and administrative expense, six months ended June 30, 2026GAAP | $11,925,606 | – | – |
| Sales and marketing expense, three months ended June 30, 2026GAAP | $113,990 | – | – |
| Sales and marketing expense, six months ended June 30, 2026GAAP | $1,073,990 | – | – |
| Depreciation and amortization, three months ended June 30, 2026GAAP | $356,597 | – | – |
| Depreciation and amortization, six months ended June 30, 2026GAAP | $713,421 | – | – |
| Total operating expenses, three months ended June 30, 2026GAAP | $7,527,258 | – | – |
| Total operating expenses, six months ended June 30, 2026GAAP | $13,713,017 | – | – |
| Loss from operations, three months ended June 30, 2026GAAP | $(7,345,054) | – | – |
| Loss from operations, six months ended June 30, 2026GAAP | $(13,360,592) | – | – |
| Interest expense, net, three months ended June 30, 2026GAAP | $(1,561,240) | – | – |
| Interest expense, net, six months ended June 30, 2026GAAP | $(3,633,919) | – | – |
| Loss on extinguishment of vendor obligation, three months ended June 30, 2026GAAP | $(320,000) | – | – |
| Loss on extinguishment of debt, three months ended June 30, 2026GAAP | $(8,881,694) | – | – |
| Loss on contract termination fee, three months ended June 30, 2026GAAP | $(766,394) | – | – |
| Other income, three months ended June 30, 2026GAAP | $511,157 | – | – |
| Total other expense, net, three months ended June 30, 2026GAAP | $(11,018,171) | – | – |
| Net loss, three months ended June 30, 2026GAAP | $(18,363,225) | – | – |
| Net loss, six months ended June 30, 2026GAAP | $(26,105,822) | – | – |
| Net loss per common share, basic and diluted, three months ended June 30, 2026GAAP | $(7.13) | – | – |
| Weighted average common shares outstanding, basic and diluted, three months ended June 30, 2026GAAP | 2,574,669 | – | – |
| Net loss per common share, basic and diluted, six months ended June 30, 2026GAAP | $(11.18) | – | – |
| Weighted average common shares outstanding, basic and diluted, six months ended June 30, 2026GAAP | 2,335,557 | – | – |
Third Quarter 2026 and remaining second half 2026 outlook
- NoteThe Company is expecting to launch the Health Lives Here consumer app together with National Football League Alumni Health in September 2026.
- NoteExpected remaining second half 2026 milestones: launch of Health Lives Here consumer app targeting GLP-1 users; launch of Medical Food Forzet targeting weight loss patients; closing of the Datavault Transaction.
What drove it
- The Company reported sequential revenue growth of 14% to $1.779 million and said it exceeded management projections.
- The KareRx joint venture added Electronic Benefits Verification services and access to 200,000 patient lives, which the Company said began to provide material revenue to rebranded Corexa Pharmacy.
- Corexa Pharmacy launched Tollo Health products Tollovid® and Galectovid™, and the Company recently made Medical Food Forzet available through its pharmacy-focused division.
- The Company entered into an agreement to expand the Datavault AI PharmacyChain™ license to all commercial healthcare, acquire QOLPOM patent portfolios, and acquire a controlling interest in Tollo Health as part of the Datavault Transaction.
Concerns
- Quarterly net revenues were $1,779,860 versus $7,790,865 in the prior-year quarter, while gross profit was $182,204 versus $505,752.
- The quarterly net loss was $(18,363,225), compared with $(6,672,464) in the prior-year quarter.
- The quarter included $(8,881,694) of loss on extinguishment of debt, $(766,394) of loss on a contract termination fee, and $(320,000) of loss on extinguishment of a vendor obligation.
- Total current liabilities of $39,413,823 exceeded total current assets of $5,632,638 as of June 30, 2026, and stockholders' equity was a deficit of $(19,504,231).
- The Datavault Transaction, Health Lives Here launch, intended CLIA lab acquisition, and drone delivery service remain subject to future execution or closing.
- The Company implemented a 1-for-50 reverse stock split in May 2026 to partially address Nasdaq delisting risk.
- The narrative states a prior-year quarterly loss per share of $5.50, while the consolidated statements of operations report $(5.40) per basic and diluted share for the three months ended June 30, 2025.
What to watch
- Launch of the Health Lives Here consumer app with NFL Alumni Health expected in September 2026.
- Launch of Medical Food Forzet targeting weight loss patients.
- Closing of the Datavault Transaction, including the expanded PharmacyChain™ license, QOLPOM patent portfolios, and controlling interest in Tollo Health.
- Whether KareRx Electronic Benefits Verification services and access to 200,000 patient lives continue to provide material revenue to Corexa Pharmacy.
- The September 9, 2026 payment date for Dream Bowl Meme Coin I token distribution, at a ratio of 50 tokens per common share owned as of the end of business on August 7, 2026.
- The status of lock-up agreements covering 1,533,930 common shares, representing approximately 49% of shares outstanding, for at least an additional ninety days.
Balance sheet and cash flow
- Cash and cash equivalents were $2,456,373 as of June 30, 2026, compared with $42,571 as of December 31, 2025.
- Accounts receivable, net were $1,174,336 as of June 30, 2026, compared with $1,137,219 as of December 31, 2025.
- Inventories, net were $1,510,123 as of June 30, 2026, compared with $1,639,426 as of December 31, 2025.
- Total current assets were $5,632,638 as of June 30, 2026, compared with $2,819,216 as of December 31, 2025.
- Total assets were $32,759,432 as of June 30, 2026, compared with $30,459,449 as of December 31, 2025.
- Accounts payable were $12,612,167 as of June 30, 2026, compared with $11,665,135 as of December 31, 2025.
- Convertible notes payable, net of debt discount were $12,101,803 as of June 30, 2026, compared with $- as of December 31, 2025.
- Current portion of debt obligations, net of debt discount was $7,104,225 as of June 30, 2026, compared with $10,887,520 as of December 31, 2025.
- Notes payable were $12,600,000 as of June 30, 2026 and December 31, 2025.
- Total current liabilities were $39,413,823 as of June 30, 2026, compared with $29,780,128 as of December 31, 2025.
- Total liabilities were $52,263,663 as of June 30, 2026, compared with $42,907,250 as of December 31, 2025.
- Stockholders' equity (deficit) was $(19,504,231) as of June 30, 2026, compared with $(12,447,801) as of December 31, 2025.
- The Company raised $6.5 million in new funding in June 2026 and restructured $14.5 million in pre-existing debt to provide a path to a preferred equity swap.
Analysis
DataMeds AI reported $1,779,860 of second-quarter net revenues and described this as 14% sequential growth that exceeded management projections. The prior-year comparison was materially weaker: revenue was $7,790,865 in the second quarter of 2025. Gross profit was $182,204, compared with $505,752 a year earlier, while cost of net revenues was $1,597,656. The filing provided no segment revenue disclosure, so the contribution from Corexa Pharmacy, KareRx services, or other activities cannot be quantified.
Operating costs remained substantial relative to the reported revenue base. General and administrative expense rose to $7,056,671 from $4,859,949 in the prior-year quarter, producing a loss from operations of $(7,345,054), compared with $(5,500,376). Sales and marketing expense declined to $113,990 from $343,383, and depreciation and amortization declined to $356,597 from $802,796, but those reductions did not offset the higher general and administrative expense and lower gross profit.
The net loss widened to $(18,363,225) from $(6,672,464). The quarter's other expense included $(8,881,694) related to debt extinguishment, $(766,394) related to a contract termination fee, $(320,000) related to extinguishment of a vendor obligation, and $(1,561,240) of net interest expense. The consolidated statements report a basic and diluted loss per common share of $(7.13) on 2,574,669 weighted average shares outstanding. Investors should note the filing's inconsistency between the narrative reference to a $(5.50) prior-year loss per share and the financial statement figure of $(5.40).
Liquidity improved in absolute cash terms after $6.5 million of new funding in June, with cash and cash equivalents of $2,456,373 at June 30 versus $42,571 at December 31. However, total current liabilities were $39,413,823 and total liabilities were $52,263,663, while stockholders' equity was a $(19,504,231) deficit. The Company also reported $12,101,803 of convertible notes payable, net of debt discount, $7,104,225 of current debt obligations, net of debt discount, and $12,600,000 of notes payable. Management said it restructured $14.5 million in pre-existing debt to provide a path to a preferred equity swap.
The near-term business case centers on execution rather than quantitative financial guidance. The Company expects a September 2026 launch of Health Lives Here with NFL Alumni Health and identifies the launch of Forzet and the closing of the Datavault Transaction as remaining second-half milestones. KareRx added Electronic Benefits Verification services and access to 200,000 patient lives, which the Company said began to provide material revenue to Corexa Pharmacy. The important items to monitor are commercialization of those initiatives, closing of the pending transaction, and the Company's ability to fund operations while addressing Nasdaq listing risk following its 1-for-50 reverse stock split.
Management, verbatim
Having been in leadership now for just under three months, I am excited with the significant progress we are making towards the important milestone of launching the Health Lives Here app together with NFLAH.
Gerald Commissiong, interim co-CEO of DataMEDS
Not in the filing
stated, not guessed- Segment revenue, segment profitability, and segment-level comparisons were not provided.
- GAAP gross-margin percentage and non-GAAP gross-margin measures were not provided.
- Non-GAAP operating income, non-GAAP net income, non-GAAP EPS, and reconciliations were not provided.
- Operating cash flow, capital expenditures, free cash flow, and other cash-flow statement metrics were not provided.
- Share repurchases, dividends, and other capital-return amounts were not provided.
- Quantitative revenue, gross-margin, operating-expense, tax-rate, EPS, or cash-flow guidance was not provided.
- A previous-quarter outlook was not provided, so no comparison with prior guidance is available.
- The income-tax provision was not reported with a value in the statement of operations.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.