QHSLab Sheds Debt, Secures Capital for Digital Health Offensive

WEST PALM BEACH, FL – December 29, 2025 – QHSLab, Inc. (OTCQB: USAQ) has decisively turned a page on its financial past, announcing today the completion of a strategic financial overhaul that positions the healthcare technology firm for an aggressive growth phase in 2026. The company has secured approximately $500,000 in new equity capital through a private placement, a move that follows the recent repurchase and retirement of over $1.4 million in high-cost legacy debt.

This two-pronged financial maneuver effectively cleanses the company's balance sheet, removing a significant overhang that has historically constrained its operations and threatened shareholder value. With fresh capital and a clear runway, management is now shifting its full attention from financial restructuring to the execution of its growth strategy in the burgeoning digital medicine and population health markets.

From Financial Repair to Strategic Growth

For years, QHSLab contended with the weight of convertible notes issued in 2021 and 2022. These notes were not just a liability on the balance sheet; they were a significant impediment to growth. Carrying a steep 18 percent default interest rate, they created over $200,000 in annualized interest expense. More critically, their conversion rights at a low price of $0.20 per share represented a looming threat of several million shares of potential dilution for existing investors.

The November 2025 retirement of this $1.4 million debt burden was the first critical step in the company's turnaround. By eliminating this toxic debt, QHSLab immediately improved its financial profile and removed what its CEO described as a source of "constant pressure."

"This financing is small in absolute dollars on purpose, but very meaningful at this stage of our evolution," stated Troy Grogan, President and CEO of QHSLab, in the company's announcement. "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."

The completion of the $500,000 private placement is the capstone on this restructuring. With the new funds, QHSLab enters 2026 with a fortified balance sheet and enhanced liquidity, enabling it to fully fund its operational and growth initiatives.

The Anatomy of a 'Clean' Capital Injection

Significantly, the new financing is structured to align with long-term growth, a detail that signals a new era of investor confidence. The $500,000 was raised not through more convertible debt, but through the sale of common stock and fixed-price warrants to a select group of accredited investors. The two participating investors purchased 1,666,663 shares at $0.30 per share and received long-term warrants with an exercise price of $0.60.

This structure is what management refers to as "clean equity capital." It avoids the variable pricing and dilutive mechanisms of the past, bringing in partners who are invested in the company's future success rather than short-term debt servicing. According to the company, these investors are aligned with management’s strategy and view this moment as a key inflection point. One participating investor reportedly expressed a desire to invest a larger sum, underscoring a renewed belief in QHSLab's trajectory.

This internal confidence is mirrored by external analysis. Litchfield Hills Research recently issued a "BUY" rating on the company's stock (USAQ), setting a target price of $5 per share and labeling the sub-$1 stock as an "attractive" opportunity. This suggests that financial analysts are also recognizing the strategic value of the company's cleaner capital structure and growth potential.

Fueling the Engine of Digital Primary Care

The financial cleanup is not the end goal, but the means to a much larger one: scaling QHSLab’s innovative digital health platform. The company provides preventive screening, assessment, and workflow solutions that help primary care providers identify and manage underdiagnosed chronic and behavioral conditions. Its cloud-based SaaS platform utilizes AI and machine learning to engage patients and provide physicians with actionable data.

The new capital is earmarked for specific growth initiatives designed to accelerate market penetration:

• Sales and Marketing: A targeted push to expand the base of medical practice clients who use the platform.
• Operational Scaling: Increasing capacity for onboarding and implementing new practices, ensuring a smooth transition for new clients.
• Enhanced Customer Support: Bolstering support activities to increase usage and satisfaction within its existing physician client base.

QHSLab’s strategy is deeply rooted in the practical realities of modern healthcare. Its tools, such as the Q-Cog™ assessment for early dementia detection and the AllergiQT™ allergy diagnostics platform, are designed to integrate directly into clinical workflows. Crucially, many of these services are reimbursable through established CPT codes, allowing physicians to generate new, predictable revenue streams while improving patient care. This physician-first, reimbursement-focused approach is a key differentiator in the competitive health-tech landscape.

A Foundation Built on Performance and Market Tailwinds

QHSLab's pivot to growth is built upon a solid foundation of recent operational success. The company is not starting from scratch; it is accelerating an already positive trend. For the first nine months of 2025, QHSLab reported impressive results, including revenue of $1.99 million—a 32 percent increase year-over-year—and a robust gross profit of $1.32 million, representing a 66 percent gross margin. This follows a landmark 2024, in which the company achieved its first-ever year of GAAP profitability and positive cash flow from operations.

These results demonstrate the market's appetite for QHSLab's solutions and the viability of its business model. The company is operating at the confluence of several major healthcare trends, including the shift to value-based care, the integration of AI into clinical practice, and the growing emphasis on preventive medicine and remote patient monitoring.

As healthcare providers continue to seek tools that enhance efficiency, improve patient outcomes, and strengthen their financial footing, QHSLab's platform is well-positioned to meet that demand. With its legacy financial burdens now in the rearview mirror, the company has the stability and resources to focus on execution. As Grogan concluded, "A cleaner balance sheet gives us the foundation to do exactly that."