QHSLab Secures $500K, Enters 2026 with Clean Slate and Growth Focus

WEST PALM BEACH, FL – December 29, 2025 – Digital health technology firm QHSLab, Inc. (OTCQB: USAQ) has announced the completion of a significant financial overhaul, culminating in a $500,000 private placement with accredited investors. This move, following the recent elimination of over $1.4 million in burdensome legacy debt, signals a strategic pivot for the company, which now enters 2026 with a fortified balance sheet and a clear mandate to pursue aggressive growth.

Management has characterized the combination of debt retirement and new capital as a definitive turning point, allowing the company to move beyond a period of financial repair and concentrate fully on executing its expansion strategy. With the shackles of high-interest, dilutive debt removed, QHSLab is now positioned to capitalize on its growing revenue and strong gross margins.

Shedding the Legacy Weight

The foundation for this strategic shift was laid in November 2025, when QHSLab repurchased and retired a substantial block of convertible notes originally issued in 2021 and 2022. These notes, totaling more than $1.4 million, represented a significant overhang on the company’s financial health and investor confidence.

According to the company’s announcement, the retired debt carried a punitive 18 percent default interest rate, creating a costly drain on cash flow. More critically, the notes included conversion rights at a fixed price of $0.20 per share. This feature posed a threat of substantial dilution to existing shareholders, creating uncertainty and suppressing the stock's potential. The retirement of these instruments has effectively removed several million shares of potential dilution from the company's capital structure and eliminated an annualized interest expense exceeding $200,000. This single action has provided immediate and significant relief to the balance sheet, improving both profitability and shareholder equity.

A 'Clean' Capital Injection for Growth

With the problematic debt cleared, the subsequent $500,000 financing provides the forward-looking momentum. Importantly for investors, the company structured this deal to avoid the pitfalls of its past financing arrangements. The placement consists of common stock and fixed-price warrants, representing a direct equity investment in the company's future. It is not a convertible note, a variable-rate instrument, or another form of potentially dilutive debt.

This “clean” capital comes from accredited investors who, according to the company, are aligned with management’s long-term vision. The nature of the investment suggests a vote of confidence in QHSLab’s strategy and its potential for growth now that the legacy liabilities are resolved. One participating investor reportedly expressed a desire to invest a larger sum, underscoring the renewed optimism surrounding the company's prospects at its current valuation. This fresh injection of approximately $500,000 in cash enhances the company's liquidity and provides crucial financial flexibility for its next phase.

From Financial Repair to Market Execution

Freed from the constant pressure of its legacy balance sheet, QHSLab’s leadership is now shifting its full attention to scaling its operations and capturing a larger market share. The new capital is earmarked specifically for growth initiatives designed to accelerate revenue and improve operational efficiencies.

In a statement, President and CEO Troy Grogan emphasized the significance of the recent financial maneuvers. “This financing is small in absolute dollars on purpose, but very meaningful at this stage of our evolution,” he stated. “Combined with the recent retirement of our legacy convertible notes, it represents a clear turning point for QHSLab. We have removed a significant source of dilution and interest expense and replaced it with clean equity capital from accredited investors who understand our long-term strategy.”

The company plans to deploy the funds across several key areas. These include executing targeted sales and marketing campaigns to expand its client base of medical practices, increasing its capacity for onboarding and implementing new clients, and enhancing its customer support infrastructure. The ultimate goal is to increase the number of physician clients using QHSLab's platform and to drive higher recurring assessment volume within each practice.

Grogan added, “As we continue to grow our population and mental health, new cognitive assessments, allergy diagnostics, and preventive care offerings, our priority remains disciplined growth, improving cash flow, and building durable shareholder value. A cleaner balance sheet gives us the foundation to do exactly that.”

Strong Fundamentals Underpinning the Shift

The company’s strategic reset is not happening in a vacuum; it is built upon a foundation of solid operational performance. QHSLab’s most recent financial reports demonstrate a business with strong underlying momentum. For the first nine months of 2025, the company reported revenue of $1.99 million, a robust 32 percent increase compared to the same period in the prior year.

Furthermore, this revenue growth is highly profitable. Gross profit for the same nine-month period stood at $1.32 million, which translates to an impressive 66 percent gross margin. These figures illustrate that QHSLab's core business model—providing preventive screening, assessment, and workflow solutions to primary care providers—is both effective and financially sound. The recent balance sheet cleanup allows the company to ensure that more of this operational success translates directly to the bottom line and to reinvesting in further growth, rather than servicing costly debt. With a strengthened financial position and proven market demand for its products, QHSLab enters the new year prepared to execute on its mission to help practices manage underdiagnosed chronic and behavioral conditions more efficiently.