Earnings release
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Cheelcare Announces Fourth Quarter and Fiscal 2026 Financial Results and Provides Curio Update Markham, Ontario--(Newsfile Corp. - August 31, 2026) - Cheelcare Inc. (TSXV: CHER) (OTC: CHCRF) ("Cheelcare" or the "Company"), a Canadian innovator in advanced mobility solutions, today announced its financial results for the fourth quarter and fiscal year ended April 30, 2026. All figures are in CAD unless otherwise noted. Operational Highlights (Year Ended April 30, 2026) Continued revenue and Companion sales growth: Fiscal 2026 revenue increased 22% year- over-year to $1.9 million. The Company sold 536 Companion units during the year, compared to 453 in fiscal 2025, representing an 18% increase in annual unit sales. Companion reimbursement milestone in the United States: On January 26, 2026, the Company announced that its Companion power-assist device had received Pricing, Data Analysis, and Coding ("PDAC") verification, establishing reimbursement eligibility through U.S. Medicare and Medicaid programs and supporting broader access to the product in the United States. Commercial milestone achieved: The Company surpassed 2,000 cumulative Companion units sold since product launch, reflecting continued market acceptance and expansion of Cheelcare's dealer and distribution network. Expanded distribution footprint: Cheelcare's products are distributed through more than 500 dealer locations globally, including more than 200 dealer locations in the United States, 267 dealer locations in Ontario, and more than 35 U.S. Veterans Affairs Medical Centers. Manufacturing scale-up: Cheelcare transitioned to its new 16,000 sq. ft. production facility during the year, with production operations commencing in October 2025. The Company continued to optimize manufacturing processes and production workflows to support increased capacity and future commercial growth. Finance and reporting infrastructure: The Company expanded and strengthened its finance function during fiscal 2026, including the addition of a new CFO and controller, while enhancing financial reporting and internal processes to support Cheelcare's growth as a public company and prepare the organization for greater scale. Curio development and regulatory advancement: The Company continued to advance Curio, its robotic complex-rehab power wheelchair, through initial commercialization, product development and regulatory activities. Following its most recent review under Ontario's Assistive Devices Program ("ADP"), the Company is undertaking additional product refinement and validation prior to resubmission, while continuing to advance the U.S. FDA 510(k) pre-market notification process. Quality and operating systems: The Company received a Compliant rating following a routine Health Canada inspection and initiated implementation of an ERP system to enhance traceability, compliance and integrated production planning. Financial Highlights (Year Ended April 30, 2026) Revenue of $1,908,941, compared to $1,569,887 in fiscal 2025, representing an increase of approximately 22%. Gross profit of $464,525, or approximately 24% of revenue, compared to $663,963, or approximately 42%, in fiscal 2025. Fiscal 2026 gross profit was impacted by a $443,000 inventory write-off and the reclassification of direct assembly labour costs to cost of sales. Net loss of $4,859,475, or $0.27 per share, compared to a net loss of $1,270,041, or $0.12 per share, in fiscal 2025. The fiscal 2026 loss included a $1,341,974 listing expense associated with
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the Company's reverse takeover, a $494,238 loss on derivative instrument and a $312,209 loss on debt settlement arising from the conversion of convertible debentures into equity. *Subsequent to year-end, on July 3, 2026, the Company completed a private placement of 2,015,500 units at a price of $1.50 per unit for gross proceeds of $3,023,250. Each unit consisted of one common share and one-half of one common share purchase warrant, with each whole warrant exercisable at $2.25 per share for a period of 24 months. The financing provides additional capital to support continued product development, commercialization and working capital requirements. Fourth Quarter Financial Highlights (Three Months Ended April 30, 2026) Revenue of $628,407, compared to $352,194 in Q4 2025, representing an increase of approximately 78%. Gross loss of $185,033, compared to gross profit of $79,402 in Q4 2025. The Q4 2026 result was primarily attributable to a $443,000 inventory write-off and the reclassification of direct assembly labour costs identified as part of the Company's year-end financial review. Net loss of $2,172,093 compared to a net loss of $750,714 in Q4 2025. The quarterly loss included the $312,209 loss on debt settlement and reflected continued investment in research and development, staffing and the Company's manufacturing and commercialization infrastructure. "Fiscal 2026 was an important year for Cheelcare as we became a public company and made significant investments in the business," said Eugene Cherny, CEO of Cheelcare. "We invested in manufacturing, our team, product development and financial infrastructure, while expanding market access for our products and strengthening the Company's capital position. We are beginning to see the benefits of that work, particularly with Companion. Since receiving Medicare and Medicaid reimbursement eligibility in January, combined with the continued expansion of our dealer network, we have seen an improvement in Companion sales activity. Those investments came at a cost this year, but we believe Cheelcare is in a stronger position heading into fiscal 2027. Our focus now is on building Companion sales, improving manufacturing efficiency and margins, and continuing to move Curio forward." Curio Regulatory & Commercialization Update During fiscal 2026, Cheelcare continued to advance Curio, its robotic complex-rehab power wheelchair, across product development, regulatory review and initial commercialization. In March 2026, the Company delivered its first Curio units to paying customers, marking the commencement of initial commercial production. Ontario Assistive Devices Program Curio has undergone multiple rounds of testing and technical review as part of the process to obtain listing under Ontario's Assistive Devices Program ("ADP"). Following the most recent review, the Company has determined that additional product refinement and validation will be required before Curio is resubmitted for ADP consideration. Curio represents a significant departure from conventional complex-rehab power wheelchair design, combining advanced robotic functionality with an integrated seating, suspension and control platform. As the product has progressed through the ADP review process, the Company has received valuable additional technical feedback regarding the functionality and performance characteristics associated with this differentiated architecture. Cheelcare views this iterative process as an important part of introducing new technology into an established industry. The Company believes products such as Curio have the potential not only to expand functionality and independence for users, but also to help advance how next-generation mobility technologies are designed, evaluated and ultimately incorporated into existing standards and reimbursement frameworks. Based on the feedback received, Cheelcare is undertaking further engineering enhancements and validation of the Curio platform prior to resubmission. The Company is also expanding its internal testing
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capabilities above applicable ISO 7176 wheelchair standards, which is expected to provide greater ability to evaluate design iterations internally before returning the product for external review. While this additional development work will extend the previously anticipated timeline for ADP listing, management remains committed to advancing Curio through the process while preserving the differentiated functionality that underpins the platform. The Company intends to provide further updates as meaningful development and regulatory milestones are achieved. "Curio was designed to push beyond the limitations of conventional complex-rehab power wheelchairs, and bringing genuinely new functionality to an established industry requires continued iteration," said Eugene Cherny, CEO of Cheelcare. "The ADP process has provided valuable feedback that is helping us further refine the platform and strengthen our validation capabilities. We remain confident in Curio's long-term potential and believe the work underway today can help advance both the product and the way next-generation mobility technologies are ultimately evaluated and brought to market." U.S. FDA 510(k) In parallel, Cheelcare continues to advance the U.S. regulatory pathway for Curio. Cybersecurity testing has been completed, and the Company continues to work through the product development, testing and documentation activities associated with the FDA 510(k) pre-market notification process. The Company intends to coordinate its ongoing engineering and validation activities across its Canadian and U.S. regulatory programs where appropriate, with the objective of developing a robust product platform capable of supporting broader commercialization. The timing and outcome of the ADP and FDA processes remain subject to applicable technical reviews, regulatory requirements and third-party timelines, and there can be no assurance regarding the timing or outcome of either process. About Cheelcare Inc. Cheelcare designs and manufactures innovative mobility solutions that empower independence for people with disabilities. From the Companion power assist devices to the groundbreaking Curio robotic complex-rehab power wheelchair, Cheelcare combines engineering excellence with human-centered design to improve quality of life. For more information, please visit: www.cheelcare.ca . For further information, please contact: Sofiya Kagan, Director of Marketing Cheelcare Inc. Tel: 1-888-948-2680 x 206 Email: skagan@cheelcare.com Forward-Looking Information: This news release may contain forward-looking statements. Forward-looking statements are based on current expectations and involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those expressed or implied. Such factors include, but are not limited to, general economic conditions, market demand, supply chain disruptions, and regulatory approvals. Any forward-looking statements are made as of the date of this news release, and the Company does not undertake to update any forward-looking statements except in accordance with applicable securities laws. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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