{"url_path":"/sec/crvw/10-q/2026/cover-page","section_key":"cover-page","section_title":"Cover Page","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-13","source_url":"https://www.sec.gov/Archives/edgar/data/1377149/0001437749-26-016663-index.html","accession_number":"0001437749-26-016663","cik":"0001377149","ticker":"CRVW","issuer_name":"CareView Communications Inc","edgar_url":"https://www.sec.gov/Archives/edgar/data/1377149/0001437749-26-016663-index.html","primary_entity_key":"0001377149","primary_entity_name":"CareView Communications Inc"},"word_count":7155,"has_tables":true,"body_markdown":"crvw20260331_10q.htm\n\n0001377149\nCareView Communications Inc\nfalse\n--12-31\nQ1\n2026\n0.001\n0.001\n20,000,000\n20,000,000\n0\n0\n0\n0\n0.001\n0.001\n800,000,000\n800,000,000\n583,880,748\n583,880,748\n583,880,748\n583,880,748\n0.75\n1\n3\n10\n0\n0\n1\n1\nfalse\nfalse\nfalse\nfalse\nRemaining salary payable for Steve Johnson, CEO, between February 15, 2018, and September 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of Contents](#toc)\n\n \n\n**UNITED STATES**\n\n**SECURITIES AND EXCHANGE COMMISSION**\n\nWashington, D.C. 20549\n\n \n\n**FORM 10-Q**\n\n \n\n(Mark One) \n\n☑\n\n**QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**\n\n \n\nFor the quarterly period ended March 31, 2026\n\n \n\nor\n\n \n\n☐\n\n**TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**\n\n \n\nFor the transition period from________ to ___________\n\n \n\nCommission File No. **000-54090**\n\n \n\n \n\n \n\n**CAREVIEW COMMUNICATIONS, INC.** \n\n(Exact name of registrant as specified in its charter)\n\n \n\n**Nevada**\n\n**95-4659068**\n\n(State or other jurisdiction of incorporation or organization)\n\n(I.R.S. Employer Identification No.)\n\n \n\n**405 State Highway 121, Suite B-240, Lewisville, TX 75067**\n\n(Address of principal executive offices)\n\n \n\n**(972) 943-6050**\n\n(Registrant’s telephone number)\n\n \n\n**N/A**\n\n(Former name, former address and former fiscal year, if changed since last report)\n\n \n\nSecurities registered pursuant to Section 12(b) of the Act: None\n\n \n\n**Title of each class**\n \n**Trading Symbol**\n \n**Name of each exchange on which registered**\n\n     \n\n \n\nIndicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑  No ☐\n\n \n\nIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑  No ☐\n\n \n\nIndicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule12b-2 of the Exchange Act:\n\n \n\nLarge accelerated filer\n\n☐\n\nAccelerated filer\n\n☐\n\nNon-accelerated filer\n\n☑\n\nSmaller reporting company\n\n☑\n\n  \nEmerging growth company\n\n☐\n\n \n\nIf an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐\n\n \n\nIndicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑\n\n \n\nThe number of shares outstanding of each of the issuer’s classes of Common Stock as of May 13, 2026 was 583,880,748.\n\n \n\n \n\n[Table of Contents](#toc)\n\n \n\n \n\nCAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES\n\nINDEX\n\n \n\n \n \n \n \n\n**Page**\n\n[**PART I - FINANCIAL INFORMATION**](#bs)\n\n \n \n\n \n \n \n \n \n\n \n\n[**Item. 1**](#bs)\n\n[**Financial Statements**](#bs)\n\n \n \n\n \n \n \n \n \n\n \n \n\n[Condensed Consolidated Balance Sheets as of March 31, 2026 (Unaudited) and December 31, 2025](#bs)\n\n \n\n[3](#bs)\n\n \n \n \n \n \n\n \n \n\n[Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025 (Unaudited)](#inc)\n\n \n\n[4](#inc)\n\n \n \n \n \n \n\n \n \n\n[Condensed Consolidated Statements of Changes in Stockholders' Deficit for the Three Months Ended March 31, 2026 and 2025 (Unaudited)](#she)\n\n \n\n[5](#she)\n\n \n \n \n \n \n\n \n \n\n[Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025 (Unaudited)](#cfs)\n\n \n\n[6](#cfs)\n\n \n \n \n \n \n\n \n \n\n[Notes to the Condensed Consolidated Financial Statements](#notes)\n\n \n\n[7](#notes)\n\n \n \n \n \n \n\n \n\n[**Item 2.**](#mda)\n\n[**Management**’**s Discussion and Analysis of Financial Condition and Results of Operations**](#mda)\n\n \n\n[17](#mda)\n\n \n \n \n \n \n\n \n\n[**Item 3.**](#qqdmr)\n\n[**Quantitative and Qualitative Disclosures about Market Risk**](#qqdmr)\n\n \n\n[23](#qqdmr)\n\n \n \n \n \n \n\n \n\n[**Item 4.**](#cps)\n\n[**Controls and Procedures**](#cps)\n\n \n\n[23](#cps)\n\n \n \n \n \n \n\n[**PART II - OTHER INFORMATION**](#partii)\n\n \n \n\n \n \n \n \n \n\n \n\n[**Item 1.**](#legal)\n\n[**Legal Proceedings**](#legal)\n\n \n\n[25](#legal)\n\n \n \n \n \n \n\n \n\n[**Item 1A.**](#risk)\n\n[**Risk Factors**](#risk)\n\n \n\n[25](#risk)\n\n \n \n \n \n \n\n \n\n[**Item 2.**](#uses)\n\n[**Unregistered Sales of Equity Securities and Use of Proceeds**](#uses)\n\n \n\n[25](#uses)\n\n \n \n \n \n \n\n \n\n[**Item 3.**](#duss)\n\n[**Defaults Upon Senior Securities**](#duss)\n\n \n\n[25](#duss)\n\n \n \n \n \n \n\n \n\n[**Item 4.**](#msd)\n\n[**Mine Safety Disclosures**](#msd)\n\n \n\n[25](#msd)\n\n \n \n \n \n \n\n \n\n[**Item 5.**](#oi)\n\n[**Other Information**](#oi)\n\n \n\n[25](#oi)\n\n \n \n \n \n \n\n \n\n[**Item 6.**](#exhibits)\n\n[**Exhibits**](#exhibits)\n\n \n\n[25](#exhibits)\n\n \n\n \n\n[Table of Contents](#toc)\n\n \n\n \n\n**CAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES**\n\n**CONDENSED CONSOLIDATED BALANCE SHEETS**\n\n \n\n  \n*March 31,*\n   * * \n\n  \n*2026*\n  \n*December 31,*\n \n\n  \n*(unaudited)*\n  \n*2025*\n \n\nASSETS\n        \n\nCurrent Assets:\n        \n\nCash\n $1,411,435  $1,546,883 \n\nAccounts receivable\n  1,330,750   1,027,620 \n\nInventory\n  522,955   402,766 \n\nOther current assets\n  166,678   234,599 \n\nTotal current assets\n  3,431,818   3,211,868 \n\n         \n\nProperty and equipment, net\n  96,145   102,012 \n\n         \n\nOther Assets:\n        \n\nIntangible assets, net\n  356,573   366,048 \n\nOperating lease right-of-use asset\n  727,576   753,013 \n\nOther assets, net\n  179,119   207,654 \n\nTotal other assets\n  1,263,268   1,326,715 \n\nTotal assets\n $4,791,231  $4,640,595 \n\n         \n\n         \n\nLIABILITIES AND STOCKHOLDERS' DEFICIT\n        \n\nCurrent Liabilities:\n        \n\nAccounts payable\n $336,995  $314,701 \n\nNotes payable\n  20,000,000   20,000,000 \n\nNotes payable - related parties\n  700,000   700,000 \n\nDeferred revenue\n  2,366,261   2,410,651 \n\nOperating lease liability\n  109,623   103,531 \n\nAccrued interest payable\n  23,698,264   22,896,139 \n\nOther current liabilities\n  258,125   268,259 \n\nTotal current liabilities\n  47,469,268   46,693,281 \n\n         \n\nLong-term Liabilities:\n        \n\nOperating lease liability, net of current portion\n  689,540   720,104 \n\nDeferred revenue\n  252,699   238,154 \n\nOther liabilities\n  -   3,434 \n\nTotal long-term liabilities\n  942,239   961,692 \n\nTotal liabilities\n  48,411,507   47,654,973 \n\n         \n\n         \n\nStockholders' Deficit:\n        \n\n         \n\nPreferred stock - par value $0.001; 20,000,000 shares authorized; no shares issued and outstanding\n  -   - \n\nCommon stock - par value $0.001; 800,000,000 shares authorized; 583,880,748 issued and outstanding\n  583,881   583,881 \n\nAdditional paid in capital\n  172,338,594   172,188,292 \n\nAccumulated deficit\n  (216,542,751)  (215,786,551)\n\nTotal stockholders' deficit\n  (43,620,276)  (43,014,378)\n\nTotal liabilities and stockholders' deficit\n $4,791,231  $4,640,595 \n\n \n\nThe accompanying footnotes are an integral part of these Condensed Consolidated Financial Statements.\n\n \n\n \n\n3\n\n[Table of Contents](#toc)\n\n \n\n \n\n**CAREVIEW COMMUNICATIONS INC. AND SUBSIDIARIES**\n\n**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**\n**FOR THE three months ended March 31, 2026 and 2025**\n**(Unaudited)**\n\n \n\n \n \n\n*Three Months Ended*\n\n \n\n \n \n\n*March 31, 2026*\n\n \n \n\n*March 31, 2025*\n\n \n\nRevenues\n\n \n \n \n \n \n \n \n \n\nSubscription-based revenue\n\n \n$\n1,017,483\n \n \n$\n991,792\n \n\nSales-based equipment package revenue\n\n \n \n238,205\n \n \n \n120,759\n \n\nSales-based software bundle revenue\n\n \n \n935,654\n \n \n \n1,126,796\n \n\nTotal revenues\n\n \n \n2,191,342\n \n \n \n2,239,347\n \n\n \n \n \n \n \n \n \n \n \n\nOperating expenses:\n\n \n \n \n \n \n \n \n \n\nCost of equipment\n\n \n \n19,920\n \n \n \n40,151\n \n\nNetwork operations\n\n \n \n712,017\n \n \n \n842,526\n \n\nGeneral and administration\n\n \n \n525,272\n \n \n \n683,188\n \n\nSales and marketing\n\n \n \n242,531\n \n \n \n175,147\n \n\nResearch and development\n\n \n \n620,544\n \n \n \n580,385\n \n\nDepreciation and amortization\n\n \n \n40,215\n \n \n \n52,660\n \n\nTotal operating expense\n\n \n \n2,160,499\n \n \n \n2,374,057\n \n\n \n \n \n \n \n \n \n \n \n\nOperating income (loss)\n\n \n \n30,843\n \n \n \n(134,710\n)\n\n \n \n \n \n \n \n \n \n \n\nOther income and (expense)\n\n \n \n \n \n \n \n \n \n\nInterest expense\n\n \n \n(802,125\n)\n \n \n(802,125\n)\n\nInterest income\n\n \n \n15,082\n \n \n \n16,035\n \n\nTotal other income (expense)\n\n \n \n(787,043\n)\n \n \n(786,090\n)\n\n \n \n \n \n \n \n \n \n \n\nLoss before taxes\n\n \n \n(756,200\n)\n \n \n(920,800\n)\n\n \n \n \n \n \n \n \n \n \n\nProvision for income taxes\n\n \n \n-\n \n \n \n-\n \n\n \n \n \n \n \n \n \n \n \n\nNet loss\n\n \n$\n(756,200\n)\n \n$\n(920,800\n)\n\n \n \n \n \n \n \n \n \n \n\nNet loss per share\n\n \n$\n(0.00\n)\n \n$\n(0.00\n)\n\n \n \n \n \n \n \n \n \n \n\nWeighted average number of common shares outstanding, basic, and diluted\n\n \n \n583,880,748\n \n \n \n583,880,748\n \n\n \n\nThe accompanying footnotes are an integral part of these Condensed Consolidated Financial Statements.\n\n \n\n4\n\n[Table of Contents](#toc)\n\n \n\n \n\n**CAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES**\n**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS**’**DEFICIT**\n**FOR THE three months ended March 31, 2026 and 2025**\n**(Unaudited)**\n\n \n\n \n \n \n* *\n \n \n \n* *\n \n \n\n*Additional*\n\n \n \n \n* *\n \n \n \n* *\n \n\n \n \n\n*Common Stock*\n\n \n \n\n*Paid in*\n\n \n \n\n*Accumulated*\n\n \n \n \n* *\n \n\n \n \n\n*Shares*\n\n \n \n\n*Amount*\n\n \n \n\n*Capital*\n\n \n \n\n*Deficit*\n\n \n \n\n*Total*\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Balance, December 31, 2024**\n\n \n \n583,880,748\n \n \n$\n583,881\n \n \n$\n171,567,950\n \n \n$\n(212,586,098\n)\n \n$\n(40,434,267\n)\n\nStock based compensation\n\n \n \n*-*\n \n \n \n-\n \n \n \n154,732\n \n \n \n-\n \n \n \n154,732\n \n\nNet loss\n\n \n \n*-*\n \n \n \n-\n \n \n \n-\n \n \n \n(920,800\n)\n \n \n(920,800\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Balance, March 31, 2025**\n\n \n \n583,880,748\n \n \n$\n583,881\n \n \n$\n171,722,682\n \n \n$\n(213,506,898\n)\n \n$\n(41,200,335\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Balance, December 31, 2025**\n\n \n \n583,880,748\n \n \n$\n583,881\n \n \n$\n172,188,292\n \n \n$\n(215,786,551\n)\n \n$\n(43,014,378\n)\n\nStock based compensation\n\n \n \n*-*\n \n \n \n-\n \n \n \n150,302\n \n \n \n-\n \n \n \n150,302\n \n\nNet loss\n\n \n \n*-*\n \n \n \n-\n \n \n \n-\n \n \n \n(756,200\n)\n \n \n(756,200\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Balance, March 31, 2026**\n\n \n \n583,880,748\n \n \n$\n583,881\n \n \n$\n172,338,594\n \n \n$\n(216,542,751\n)\n \n$\n(43,620,276\n)\n\n \n\nThe accompanying footnotes are an integral part of these Condensed Consolidated Financial Statements.\n\n \n\n5\n\n[Table of Contents](#toc)\n\n \n\n \n\n**CAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES**\n\n**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**\n\n**FOR THE three months ended March 31, 2026 and 2025**\n\n**(Unaudited)**\n\n \n\n \n \n\n*Three Months Ended*\n\n \n\n \n \n\n*March 31, 2026*\n\n \n \n\n*March 31, 2025*\n\n \n\n \n \n \n \n \n \n \n \n \n\n**CASH FLOWS FROM OPERATING ACTIVITIES**\n\n \n \n \n** **\n \n \n \n** **\n\nNet loss\n\n \n$\n(756,200\n)\n \n$\n(920,800\n)\n\nAdjustments to reconcile net loss to net cash flows (used in) provided by operating activities:\n\n \n \n \n \n \n \n \n \n\nDepreciation\n\n \n \n15,149\n \n \n \n29,234\n \n\nAmortization of intangible assets\n\n \n \n9,475\n \n \n \n10,540\n \n\nAmortization of deferred installation costs\n\n \n \n15,591\n \n \n \n12,887\n \n\nNon-cash lease expense\n\n \n \n25,437\n \n \n \n45,973\n \n\nStock based compensation\n\n \n \n150,302\n \n \n \n154,732\n \n\nChanges in operating assets and liabilities:\n\n \n \n \n \n \n \n \n \n\nAccounts receivable\n\n \n \n(303,130\n)\n \n \n(443,026\n)\n\nInventory\n\n \n \n(120,189\n)\n \n \n34,734\n \n\nContract assets\n\n \n \n825\n \n \n \n12,246\n \n\nOther current assets\n\n \n \n67,921\n \n \n \n268,990\n \n\nAccounts payable\n\n \n \n22,294\n \n \n \n(95,116\n)\n\nAccrued interest\n\n \n \n802,125\n \n \n \n802,125\n \n\nOther current liabilities\n\n \n \n(1,447\n)\n \n \n(83,275\n)\n\nDeferred revenue\n\n \n \n(29,846\n)\n \n \n490,075\n \n\nOperating lease liability\n\n \n \n(24,473\n)\n \n \n(51,438\n)\n\nNet cash flows (used in) provided by operating activities\n\n \n \n(126,166\n)\n \n \n267,881\n \n\n \n \n \n \n \n \n \n \n \n\n**CASH FLOWS FROM INVESTING ACTIVITIES**\n\n \n \n \n** **\n \n \n \n** **\n\nPurchase of property and equipment\n\n \n \n(9,282\n)\n \n \n(1,082\n)\n\nNet cash flows used in investing activities\n\n \n \n(9,282\n)\n \n \n(1,082\n)\n\n \n \n \n \n \n \n \n \n \n\nIncrease (decrease) in cash\n\n \n \n(135,448\n)\n \n \n266,799\n \n\nCash, beginning of period\n\n \n \n1,546,883\n \n \n \n759,266\n \n\nCash, end of period\n\n \n$\n1,411,435\n \n \n$\n1,026,065\n \n\n \n\nThe accompanying footnotes are an integral part of these Condensed Consolidated Financial Statements.\n\n \n\n \n\n6\n\n[Table of Contents](#toc)\n\nCAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES\n\nNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**\n\n \n\n \n\n**NOTE 1**–**BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS**\n\n \n\nInterim Financial Statements\n\n \n\nThe accompanying unaudited interim Condensed Consolidated Financial Statements of CareView Communications, Inc. (“CareView”, the “Company”, “we”, “us” or “our”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form *10*-Q. Accordingly, they do *not* include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, such financial statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of the financial information included herein in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission (the “SEC”). The balance sheet at *December 31, 2025 *has been derived from the audited Consolidated Financial Statements at that date but does *not* include all of the information and footnotes required by GAAP for complete financial statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Results of operations for interim periods are *not* necessarily indicative of results for the full year. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in our Annual Report on Form *10*-K for the year ended *December 31, 2025 *as filed with the SEC on *March 30, 2026.*\n\n \n\nRevenue Recognition\n\n \n\nWe recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic *606* (“ASC *606”*). For our subscription service contracts, we have employed the practical expedient discussed in ASC *606*-*10*-*55*-*18* related to invoicing as we have the right to consideration from our customers in the amount that corresponds directly with the value to the customer of our performance completed to date and therefore, we recognize revenue upon invoicing as further discussed below.\n\n \n\nIn accordance with ASC *606,* revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods or services. The provisions of ASC *606* include a *five*-step process by which we determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which we expect to be entitled in exchange for those goods or services. ASC *606* requires us to apply the following steps: (*1*) identify the contract with the customer; (*2*) identify the performance obligations in the contract; (*3*) determine the transaction price; (*4*) allocate the transaction price to the performance obligations in the contract; and (*5*) recognize revenue when, or as, we satisfy the performance obligation. For those customers for which we are required to collect sales taxes, we record such sales taxes on a net basis which has *no* effect on the amount of revenue or expenses recognized as the sales taxes are a flow through to the taxing authority.\n\n \n\nWe enter into contracts with customers that *may*provide multiple combinations of our products, software solutions, and other related services, which are generally capable of being distinct and accounted for as separate performance obligations. Performance obligations that are *not* distinct at contract inception are combined.\n\n \n\nCustomer contract fulfillment typically involves multiple procurement promises, which *may*include various equipment, software subscription, project-related installation and training services, and support. We allocate the transaction price to each performance obligation based on estimated relative standalone selling price. Revenue is then recognized for each performance obligation upon transferring control of the hardware, software, and services to the customer and in an amount that reflects the consideration we expect to receive and the estimated benefit the customer receives over the term of the contract.\n\n \n\nGenerally, we recognize revenue under each of our performance obligations as follows:\n\n \n\n \n●\n\nSubscription services – We recognize subscription revenues monthly over the contracted license period.\n\n \n●\n\nEquipment packages – We recognize equipment revenues when control of the devices has been transferred to the client (“point in time”).\n\n \n●\n\nSoftware bundle and related services related to sales-based contracts – We recognize our software subscription, installation, training, and other services on a straight-line basis over the estimated contracted license period (“over time”).\n\n \n\nThe Company earns sales-based contract revenue from services rendered under specific agreements, which hinge on a *third*-party reseller who possesses the exclusive authority to engage directly with veteran-owned hospitals. Evaluating the Company’s role in these contracts necessitates assessing whether it functions as the principal or agent, a determination that involves analyzing the extent of control the Company wields over the contracts.\n\n \n\n*7*\n\n[Table of Contents](#toc)\n\nCAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES\n\nNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nFollowing its assessment, the Company reports revenue from services provided under such contracts on a gross basis. This decision is justified by the Company's primary responsibility to fulfill the contractual obligations, including delivery and installation of equipment and software, training, and its control over other services within the contract period. Furthermore, the Company directly sets the contract price with its customers based on the services outlined in the statement of work. As the Company is responsible for fulling this promise and maintains control, the Company is acting as the principal.\n\n \n\n*Disaggregation of Revenue* \n\n \n\nThe following presents net revenues disaggregated by our business models:\n\n \n\n  \n**Three Months Ended**\n \n\n  \n**March 31,**\n \n\n  \n**2026**\n  \n**2025**\n \n\nSales-based contract revenue\n        \n\nEquipment package (point in time)\n $238,205  $120,759 \n\nSoftware bundle (over time)\n  935,654   1,126,796 \n\nTotal sales-based contract revenue\n  1,173,859   1,247,555 \n\n         \n\nSubscription-based lease revenue (over time)\n  1,017,483   991,792 \n\nNet revenue\n $2,191,342  $2,239,347 \n\n \n\n*Contract Liabilities*\n\n \n\nOur sales-based contract payment arrangements with our customers typically include an initial equipment payment due upon signing of the contract and subsequent payments when certain performance obligations are completed. Customer payments received in advance of satisfaction of related performance obligations are deferred as contract liabilities. These amounts are recorded as “deferred revenue” in our Condensed Consolidated Balance Sheets and recognized into revenues as either a point in time or over time.\n\n \n\nDuring the *three* months ended *March 31, 2026*and *2025*, sales-based deferred contract liability recognized as revenue totaled $1,160,073 and $1,149,315, respectively. The table below details the sales-based contract liability activity during the *three* months ended *March 31, 2026*and *2025*.\n\n \n\n  \n**Three Months Ended**\n \n\n  \n**March 31,**\n \n\n  \n**2026**\n  \n**2025**\n \n\nBalance, beginning of period\n $2,648,805  $2,668,399 \n\nAdditions\n  1,130,228   1,639,390 \n\nTransfer to revenue\n  (1,160,073)  (1,149,315)\n\nBalance, end of period\n $2,618,960  $3,158,474 \n\n \n\n*8*\n\n[Table of Contents](#toc)\n\nCAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES\n\nNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nAs of *March 31, 2026*, the aggregate amount of deferred revenue from subscription-based contracts and sales-based contracts allocated to performance obligations that are unsatisfied or partially satisfied is $2,618,960 and will be recognized into revenue over time as follows:\n\n \n\nYears Ending December 31,\n \n**Amount**\n \n\n2026 (April through December)\n $1,953,736 \n\n2027\n  665,224 \n\n  $2,618,960 \n\n \n\nWe defer and capitalize all costs associated with the installation of the CareView System into a healthcare facility until the CareView System is fully operational and accepted by the healthcare facility. Installation costs are specifically identifiable based on the amounts we are charged from *third* party installers or directly identifiable internal labor hours incurred for each installation. Upon acceptance, the associated costs are expensed on a straight-line basis over the life of the contract with the healthcare facility. These costs are included in network operations on the accompanying Condensed Consolidated Statements of Operations.\n\n \n\nThe table below details the activity in these deferred installation costs during the periods ended *March 31, 2026*and *2025*, included in other assets in the accompanying unaudited Condensed Consolidated Balance Sheets.\n\n \n\n  \n**Three Months Ended**\n \n\n  \n**March 31,**\n \n\n  \n**2026**\n  \n**2025**\n \n\nBalance, beginning of period\n $101,541  $87,888 \n\nAdditions\n  —   18,727 \n\nTransfer to expense\n  (15,591)  (12,887)\n\nBalance, end of period\n $85,950  $93,728 \n\n \n\n*Significant Judgements When Applying Topic 606*\n\n \n\nContracts with our customers are typically structured similarly and include various combinations of our products, software solutions, and related services. Determining whether the various contract promises are considered distinct performance obligations that should be accounted for separately versus together *may*require significant judgment.\n\n \n\nThe contract transaction price is allocated to distinct performance obligations using the estimated standalone selling price. We determine the standalone selling price through maximizing observable inputs such as standalone sales, competitor standalone sales, or substantive renewal prices charged to customers when they exist. In instances where the standalone selling price is *not* observable, we utilize an estimate of standalone selling price. Such estimates are derived from various methods that include cost plus margin, and historical pricing practices. Judgment *may*be required to determine standalone selling prices for each performance obligation and whether it depicts the amount we expect to receive in exchange for the related good or service.\n\n \n\nContract modifications occur when we and our customers agree to modify existing customer contracts to change the scope or price (or both) of the contract or when a customer terminates some, or all, of the existing services provided by us. When a contract modification occurs, it requires us to exercise judgment to determine if the modification should be accounted for as a separate contract, the termination of the original contract and creation of a new contract, a cumulative catch-up adjustment to the original contract, or a combination.\n\n \n\nContracts with our customers include a limited warranty on our products covering materials, workmanship, or design for the duration of the contract. We do *not* offer paid additional extended or lifetime warranty packages. We determined that limited warranty in our contract is *not* a distinct performance obligation. We do *not* believe our estimates of warranty costs to be significant to our determination of revenue recognition, and therefore, did *not* reserve for warranty costs.\n\n \n\nLeases\n\n \n\nThe Company has an operating lease primarily consisting of office space with a remaining lease term of *57* months. At the lease commencement date, an operating lease liability and related operating lease asset are recognized. The operating lease liabilities are calculated using the present value of lease payments. The discount rate used is either the rate implicit in the lease, when known, or our estimated incremental borrowing rate. Operating lease assets are valued based on the initial operating lease liabilities plus any prepaid rent and direct costs from executing the leases.\n\n \n\nEarnings (Loss) Per Share\n\n \n\nWe calculate earnings per share (“EPS”) in accordance with GAAP, which requires the computation and disclosure of *two* EPS amounts, basic and diluted. Basic EPS is computed based on the weighted average number of common shares outstanding during the period. Diluted EPS is computed based on the weighted average number of common shares outstanding plus all potentially dilutive common shares outstanding during the period under the treasury stock method. Such potential dilutive common shares consist of stock options, and warrants to purchase our Common Stock (the “Warrants”). Potential common shares totaling 66,676,835 and 66,975,835 on *March 31, 2026*and *2025*, respectively, have been excluded from the diluted earnings per share calculation as they are anti-dilutive due to our reported net loss. For *2026,* the 66,676,835 potential common shares consist of 65,426,835 stock options and 1,250,000 warrants, compared to 66,975,835 potential  common shares in *2025,* which consisted of 65,725,835 stock options and 1,250,000 warrants.\n\n \n\n*9*\n\n[Table of Contents](#toc)\n\nCAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES\n\nNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nRecently Adopted Accounting Pronouncements\n\n \n\nIn *December 2023, *the FASB issued ASU *2023*-*09,* Income Taxes (Topic *740*): Improvements to Income Tax Disclosures. This update will improve the transparency and usefulness of income tax disclosures. Investors, lenders, and creditors have indicated that current disclosures do *not* provide enough detailed information to assess how a company's operations, tax risks, and planning affect its tax rate and future cash flows. The requirements take effect for public business entities for fiscal years beginning after *December 15, 2024.*The Company adopted this standard in its *2025* annual period on a prospective basis. The adoption enhances the Company’s income tax disclosures by increasing detail and transparency, but did *not* affect the Company’s financial position, results of operations, or cash flows.\n\n \n\nIn *November 2024,*the FASB issued ASU *No.* *2024*-*04,* “Debt with Conversion and Other Options (Subtopic *470*-*20*): Induced Conversions of Convertible Debt Instruments,” which clarifies the criteria for determining when a settlement of convertible debt should be accounted for as an induced conversion. The guidance applies only to conversions involving the full issuance of equity securities as originally specified in the debt terms and includes additional clarifications to aid in application. The amendments in this update are effective for all entities for annual reporting periods beginning after *December 15, 2025,*and interim reporting periods within those annual reporting periods. The Company adopted this standard on *January 1, 2026.*The adoption of this guidance did *not* have a material impact on the Company’s Condensed Consolidated Financial Statements, as the Company has *no* outstanding convertible debt instruments.\n\n \n\nIn *July 2025,*the FASB issued ASU *2025*-*05,* \"Financial Instruments—Credit Losses (Topic *326*): Measurement of Credit Losses for Accounts Receivable and Contract Assets,\" which amends how entities estimate expected credit losses for current accounts receivable and current contract assets arising from revenue contracts under ASC *606.* A reduction in the need for extensive forecasting has been established and allows all entities to assume that conditions will persist at balance sheet date for the remaining life of those current assets. The amendments in this update are effective for all entities for annual reporting periods beginning after *December 15, 2025,*and interim periods within those annual reporting periods. Upon adoption, the standard did *not* have a material impact on the Company's financial statements. \n\n \n\nThere was *no* impact on our Condensed Consolidated Financial Statements from recently adopted accounting standards.\n\n \n\nRecently Issued Accounting Pronouncements\n\n \n\nIn *October 2023,*the FASB issued ASU *No.* *2023*-*06,* which incorporates *14* of the *27* SEC disclosures identified in SEC Release *No.* *33*-*10532* (issued *August 17, 2018).*This ASU updates disclosure and presentation requirements across various Codification Topics and applies to all entities within the scope of those Topics, unless specified otherwise. The amendments are to be applied prospectively. For public business entities, each amendment becomes effective when the related SEC disclosure is removed from Regulation S-*X* or S-K; early adoption is *not* permitted. The Company has evaluated ASU *No.* *2023*-*06* and does *not* expect it to impact its Condensed Consolidated Financial Statements.\n\n \n\nIn *November 2024, *the FASB issued ASU *2024*-*03,* Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic *220*-*40*). This update will enhance disclosures about public business entity’s expenses, responding to investor requests for more detailed information on components such as inventory purchases, employee compensation, depreciation, amortization, and depletion within commonly presented expense captions (e.g., cost of sales, SG&A, and R&D). These amendments are expected to provide investors with a clearer understanding of an entity’s expenses, helping them assess performance, forecast future expenses, and evaluate cash flow prospects. The effective date for these amendments, as clarified by ASU *2025*-*01,* are for annual reporting periods beginning after *December 15, 2026,*and interim reporting periods within annual reporting periods beginning after *December 15, 2027. *The standard can be applied either prospectively or retrospectively. We are currently assessing adoption timing and the effect that the updated standard will have on our financial statement disclosures.\n\n \n\nIn *September 2025,*the FASB issued ASU *2025*-*06,* \"Intangibles—Goodwill and Other—Internal-Use Software (Subtopic *350*-*40*): Targeted Improvements to the Accounting for Internal-Use Software.\" The update eliminates all references to \"development stages\", so entities are *no* longer required to wait for a specific application development stage before capitalizing costs. The *two* key criteria for when capitalization of internal-use software costs *may*begin are when Management has authorized and committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform the intended function. The amendments are effective for all entities for annual reporting periods beginning after *December 15, 2027,*and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. Management is currently assessing the potential effects on our financial statements and considering the possibility of early adoption.\n\n \n\nThere have been *no* material changes to our significant accounting policies as summarized in NOTE *2* of our Condensed Consolidated Financial Statements for the period ended *March **31,* *2026.* We do *not* expect that the adoption of any recent accounting pronouncements will have a material impact on our accompanying Condensed Consolidated Financial Statements.\n\n \n\n \n\n**NOTE 2**–**GOING CONCERN, LIQUIDITY AND MANAGEMENT**’**S PLANS**\n\n \n\nAccounting standards require management to evaluate our ability to continue as a going concern for a period of *one* year after the issuance of these financial statements (“evaluation period”). In evaluating the Company’s ability to continue as a going concern, management considers the conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern for a period of *twelve* months after the Company issues its financial statements. At the *three* months ended *March 31, 2026*, management considered the Company’s current financial condition and liquidity sources, including current funds available, forecasted future cash flows, and the Company’s conditional and unconditional obligations due within *12* months of the date these financial statements are issued.\n\n \n\nThe Company is subject to risks like those of healthcare technology companies whereby revenues are generated based on both sales-based and subscription-based models, which assume dependence on key individuals, uncertainty of product development, generation of revenues, positive cash flow, dependence on outside sources of capital, risks associated with research, development, and successful testing of its products, successful protection of intellectual property, ability to maintain and grow its customer base, and susceptibility to infringement on the proprietary rights of others. The Company’s net losses and working capital deficit raise substantial doubt about the Company’s ability to continue as a going concern. The attainment of profitable operations is dependent on future events, including obtaining adequate financing to fulfill the Company’s growth and operating activities and generating a level of revenue adequate to support the Company’s cost structure. \n\n \n\n*10*\n\n[Table of Contents](#toc)\n\nCAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES\n\nNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nAs of *March 31, 2026*, the Company had a working capital deficit of $44,037,450. The Company’s net losses, and working capital deficit raise substantial doubt about the Company’s ability to continue as a going concern. Management has evaluated the significance of the conditions described above in relation to the Company’s ability to meet its obligations and concluded that, without additional funding, the Company will *not* have sufficient funds to meet its obligations within *one* year from the date the Condensed Consolidated Financial Statements were issued. While management will look to continue funding operations by increased sales volumes and raising additional capital from sources such as sales of its debt or equity securities or loans to meet operating cash requirements, there is *no* assurance that management’s plans will be successful. \n\n \n\nManagement continues to monitor the immediate and future cash flows needs of the company in a variety of ways which include forecasted net cash flows from operations, capital expenditure control, new inventory orders, debt modifications, increases in sales outreach, streamlining and controlling general and administrative costs, competitive industry pricing, sale of equities, debt conversions, new product or services offerings, and new business partnerships.\n\n \n\nThe accompanying Condensed Consolidated Financial Statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business. A successful transition to attaining profitable operations is dependent upon achieving a level of positive cash flows adequate to support the Company’s cost structure.\n\n \n\n \n\n**NOTE 3**–**STOCKHOLDERS**’**EQUITY**\n\n \n\nWarrants to Purchase Common Stock of the Company\n\n \n\nWe use the Black-Scholes-Merton option pricing model (“Black-Scholes Model”) to determine the fair value of Warrants. The Black-Scholes Model requires the use of a number of assumptions including expected volatility of the stock price, risk-free interest rate, and expected term. The expected volatility is based on the historical volatility of the Company’s stock. The risk-free interest rate was based on U.S. Treasury yields commensurate with the expected term of the warrants. The expected term of the warrants was based on the contractual term and management’s expectations of exercise behavior.\n\n \n\nA summary of our Warrants activity and related information follows:\n\n \n\n   * *** **  * *** **  * *** ** \n**Weighted**\n \n\n   * *** **  * *** ** \n**Weighted**\n  \n**Average**\n \n\n  \n**Number of**\n  \n**Range of**\n  \n**Average**\n  \n**Remaining**\n \n\n  \n**Shares Under**\n  \n**Warrant Price**\n  \n**Exercise**\n  \n**Contractual**\n \n\n  \n**Warrant**\n  \n**Per Share**\n  \n**Price**\n  \n**Life**\n \n\nBalance at December 31, 2025\n  1,250,000  \n$0.01 - $0.03\n  $0.014   4.0 \n\nGranted\n  *—*   *—*   *—*   *—* \n\nExpired\n  *—*   *—*   *—*   *—* \n\nCanceled\n  *—*   *—*   *—*   *—* \n\nBalance at March 31, 2026\n  1,250,000  \n$0.01 - $0.03\n  $0.014   3.7 \n\n \n\nStock Options\n\n \n\nThe Company’s Stock Incentive Plans include the CareView Communications, Inc.’s *2007* Stock Incentive Plan (*“2007* Plan”), *2009* Stock Incentive Plan (the *“2009* Plan”), *2015* Stock Option Plan (the *“2015* Plan”), *2016* Stock Option Plan (the *“2016* Plan”), *2020* Stock Option Plan ( the *“2020* Plan”), and *2024* Stock Option Plan (the *\"2024* Plan\"), pursuant to which 8,000,000, 10,000,000, 5,000,000, 20,000,000, 20,000,000, and 30,000,000 shares of Common Stock were reserved for issuance upon the exercise of options, respectively. The Stock Incentive Plans are designed to serve as an incentive for retaining our qualified and competent key employees, officers and directors, and certain consultants and advisors. The Stock Options vest over three years and have an exercise period of ten years from the date of issuance.  \n\n \n\nAt *March 31, 2026, *Plan Options to purchase 8,000,000 shares of our Common Stock have been issued with zero remaining outstanding under the *2007* Plan, Plan Options to purchase 10,000,000 shares have been issued with zero remaining outstanding under the *2009* Plan, Plan Options to purchase 5,000,000 shares have been issued with 2,697,499 remaining outstanding under the *2015* Plan, Plan Options to purchase 20,000,000 shares have been issued with 19,615,945 remaining outstanding under the *2016* Plan, Plan Options to purchase 20,000,000 shares have been issued with 19,401,333 remaining outstanding under the *2020* Plan and Plan Options to purchase 23,931,058 shares have been issued with 23,712,058 remaining outstanding under the *2024* Plan.  \n\n \n\nThe valuation methodology used to determine the fair value Plan Options (the “Option(s)”) issued was the Black- Scholes Model. The Black-Scholes Model requires the use of a number of assumptions including volatility of the stock price, the weighted average risk-free interest rate, and the weighted average expected term of the options. The fair value of stock options granted was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: expected volatility ranging from 292.5% to 294.3%, an expected term of 6 years, a risk-free interest rate of 3.75%, and an expected dividend yield of 0%. The underlying stock price at the grant date ranged from $0.02 to $0.03, and the exercise price ranged from $0.02 to $0.03 per share.\n\n \n\n*11*\n\n[Table of Contents](#toc)\n\nCAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES\n\nNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nA summary of our stock option activity and related information follows:\n\n \n\n   * *** **  * *** ** \n**Weighted**\n   * *** **\n\n   * *** ** \n**Weighted**\n  \n**Average**\n   * *** **\n\n  \n**Number of**\n  \n**Average**\n  \n**Remaining**\n  \n**Aggregate**\n \n\n  \n**Shares Under**\n  \n**Exercise**\n  \n**Contractual**\n  \n**Intrinsic**\n \n\n  \n**Options**\n  \n**Price**\n  \n**Life**\n  \n**Value**\n \n\nBalance at December 31, 2025\n  65,715,835  $0.06   5.6  $— \n\nGranted\n  41,000   0.03   9.8   *—* \n\nForfeited/Expired\n  (330,000)  0.16   *—*   *—* \n\nExercised\n  —   —   *—*   *—* \n\nBalance at March 31, 2026\n  65,426,835  $0.07   5.7  $660 \n\nVested and Exercisable at March 31, 2026\n  55,149,882  $0.06   4.9  $— \n\n \n\nShare-based compensation expense for Options charged to our operating results for the *three* months ended *March **31,* *2026,* and *2025* were $150,302 and $154,732 respectively. The estimate of forfeitures is to be recorded at the time of grant and revised in subsequent periods if actual forfeitures differ from the estimates. We have *not* included an adjustment to our stock-based compensation expense based on the nominal amount of the historical forfeiture rate. We do, however, revise our stock-based compensation expense based on actual forfeitures during each reporting period.\n\n \n\nAt *March 31, 2026*, total unrecognized estimated compensation expense related to non-vested Options granted prior to that date was approximately $561,590, which is expected to be recognized over a weighted-average period of 0.9 years. No tax benefit was realized due to a continued pattern of operating losses.\n\n \n\n \n\n**NOTE 4**–**OTHER CURRENT ASSETS**\n\n \n\nOther current assets consist of the following:\n\n \n\n \n \n\n**March 31,**\n\n \n \n\n**December 31,**\n\n \n\n \n \n\n**2026**\n\n \n \n\n**2025**\n\n \n\nPrepaid insurance\n\n \n$\n81,719\n \n \n$\n145,994\n \n\nOther prepaid expenses\n\n \n \n84,959\n \n \n \n88,605\n \n\nTOTAL OTHER CURRENT ASSETS\n\n \n$\n166,678\n \n \n$\n234,599\n \n\n \n\n \n\n**NOTE 5**–**INVENTORY**\n\n \n\nInventory is valued at the lower of cost, determined on a *first*-in, *first*-out (FIFO), or net realizable value. Inventory items are analyzed to determine cost and net realizable value and appropriate valuation adjustments are then established.\n\n \n\nInventory consists of the following:\n\n \n\n \n \n\n**March 31,**\n\n \n \n\n**December 31,**\n\n \n\n \n \n\n**2026**\n\n \n \n\n**2025**\n\n \n\nMobile cart units\n\n \n$\n99,074\n \n \n$\n44,398\n \n\nPortable units\n\n \n \n172,901\n \n \n \n131,856\n \n\nEquipment components\n\n \n \n250,980\n \n \n \n226,512\n \n\nTOTAL INVENTORY\n\n \n$\n522,955\n \n \n$\n402,766\n \n\n \n\n*12*\n\n[Table of Contents](#toc)\n\nCAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES\n\nNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n \n\n**NOTE 6**–**PROPERTY AND EQUIPMENT**\n\n \n\nProperty and equipment consist of the following:\n\n \n\n  \n**March 31,**\n  \n**December 31,**\n \n\n  \n**2026**\n  \n**2025**\n \n\nNetwork equipment\n $8,460,494  $8,460,494 \n\nOffice equipment\n  167,594   167,594 \n\nVehicles\n  133,616   133,616 \n\nTest equipment\n  136,100   136,100 \n\nFurniture\n  92,097   92,097 \n\nWarehouse equipment\n  17,409   17,409 \n\nLeasehold improvements\n  14,403   5,121 \n\n   9,021,713   9,012,431 \n\nLess: accumulated depreciation\n  (8,925,568)  (8,910,419)\n\nTOTAL PROPERTY AND EQUIPMENT, NET\n $96,145  $102,012 \n\n \n\nDepreciation expense for the *three* months ended *March 31, 2026*and *2025* was $15,149 and $29,234, respectively. \n\n \n\n \n\n**NOTE 7**–**INTANGIBLE AND OTHER ASSETS, NET**\n\n \n\nIntangible assets consist of the following:\n\n \n\n  \n**March 31, 2026**\n \n\n  \n**Cost**\n  \n**Accumulated Amortization**\n  \n**Net**\n \n\nPatents and trademarks\n $895,789  $556,141  $339,648 \n\nOther intangible assets\n  42,386   25,461   16,925 \n\nTOTAL INTANGIBLE ASSETS\n $938,175  $581,602  $356,573 \n\n \n\n  \n**December 31, 2025**\n \n\n  \n**Cost**\n  \n**Accumulated Amortization**\n  \n**Net**\n \n\nPatents and trademarks\n $895,789  $547,319  $348,470 \n\nOther intangible assets\n  42,386   24,808   17,578 \n\nTOTAL INTANGIBLE ASSETS\n $938,175  $572,127  $366,048 \n\n \n\n \n\nAmortization expense for the *three* months ended *March 31, 2026*and *2025* was $9,475 and $10,540 respectively.\n\n \n\n*13*\n\n[Table of Contents](#toc)\n\nCAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES\n\nNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nOther assets consist of the following:\n\n \n\n  \n**March 31, 2026**\n \n\n  \n**Cost**\n  \n**Accumulated Amortization**\n  \n**Net**\n \n\nDeferred installation costs\n $186,838  $100,887  $85,951 \n\nDeferred clinical training costs\n  1,920   1,298   622 \n\nDeferred sales commissions\n  261,282   225,789   35,493 \n\nPrepaid license fee\n  249,999   239,070   10,929 \n\nSecurity deposit\n  46,124   —   46,124 \n\nTOTAL OTHER ASSETS\n $746,163  $567,044  $179,119 \n\n \n\n  \n**December 31, 2025**\n \n\n  \n**Cost**\n  \n**Accumulated Amortization**\n  \n**Net**\n \n\nDeferred installation costs\n $186,838  $85,297  $101,541 \n\nDeferred clinical training costs\n  1,920   1,138   782 \n\nDeferred sales commissions\n  248,827   204,647   44,180 \n\nPrepaid license fee\n  249,999   234,972   15,027 \n\nSecurity deposit\n  46,124   —   46,124 \n\nTOTAL OTHER ASSETS\n $733,708  $526,054  $207,654 \n\n \n\n \n\n**NOTE 8**–**OTHER CURRENT LIABILITIES**\n\n \n\nOther current liabilities consist of the following:\n\n \n\n \n \n\n**March 31,**\n\n \n \n\n**December 31,**\n\n \n\n \n \n\n**2026**\n\n \n \n\n**2025**\n\n \n\nAllowance for system removal\n\n \n$\n54,802\n \n \n$\n54,802\n \n\nAccrued paid time off\n\n \n \n79,917\n \n \n \n26,048\n \n\nDeferred officer compensation (1)\n\n \n \n49,528\n \n \n \n49,528\n \n\nOther accrued liabilities\n\n \n \n73,878\n \n \n \n137,881\n \n\nTOTAL OTHER CURRENT LIABILITIES\n\n \n$\n258,125\n \n \n$\n268,259\n \n\n \n\n(*1*)\n\nRemaining salary payable for Steve Johnson, CEO, between *February 15, 2018*and *September 30, 2020.*\n\n \n\n*14*\n\n[Table of Contents](#toc)\n\nCAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES\n\nNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n  \n\n \n\n**NOTE 9**–**AGREEMENT WITH PDL BIOPHARMA, INC.**\n\n \n\nOn *June 26, 2015,*we entered into a Credit Agreement (as subsequently amended) with PDL BioPharma, Inc. (“PDL”), as administrative agent and lender (“the Lender”) (the “PDL Credit Agreement”). \n\n \n\nOn *December 11, 2024 (*the “Effective Date”), the Company, the Borrower, the Lender, Steven G. Johnson, President and Chief Executive Officer of the Company, and Dr. James R. Higgins, a director of the Company, entered into a Ninth Amendment to Credit Agreement (the “Ninth Credit Agreement Amendment”), pursuant to which the parties agreed to amend the Credit Agreement to (i) provide that the Maturity Date shall be extended to *March 31, 2025. *\n\n \n\nOn *March 21, 2025 (*the “Effective Date”), the Company, the Borrower, the Lender, Steven G. Johnson, President and Chief Executive Officer of the Company, and Dr. James R. Higgins, a director of the Company, entered into a Tenth Amendment to Credit Agreement (the “Tenth Credit Agreement Amendment”), pursuant to which the parties agreed to amend the Credit Agreement to (i) provide that the Maturity Date shall be extended to *June 30, 2025.*\n\n \n\nOn *June 30, 2025 (*the “Effective Date”), the Company, the Borrower, the Lender, Steven G. Johnson, President and Chief Executive Officer of the Company, and Dr. James R. Higgins, a director of the Company, entered into an Eleventh Amendment to Credit Agreement (the “Eleventh Credit Agreement Amendment”), pursuant to which the parties agreed to amend the Credit Agreement to (i) provide that the Maturity Date shall be extended to *September 30, 2025.  *\n\n \n\nOn *September 30, 2025 (*the “Effective Date”), the Company, the Borrower, the Lender, Steven G. Johnson, President and Chief Executive Officer of the Company, and Dr. James R. Higgins, a director of the Company, entered into an Twelfth Amendment to Credit Agreement (the “Twelfth Credit Agreement Amendment”), pursuant to which the parties agreed to amend the Credit Agreement to (i) provide that the Maturity Date shall be extended to *December 31, 2025. *\n\n \n\nOn *December 31, 2025 (*the “Effective Date”), the Company, the Borrower, the Lender, Steven G. Johnson, President and Chief Executive Officer of the Company, and Dr. James R. Higgins, a director of the Company, entered into a Thirteenth Amendment to Credit Agreement (the “Thirteenth Amendment to Credit Agreement”), pursuant to which the parties agreed to amend the Credit Agreement to (i) provide that the Maturity Date shall be extended to *March 31, 2026. *\n\n \n\nOn  *March 30, 2026 (*the “Effective Date”), the Company, the Borrower, the Lender, Steven G. Johnson, President and Chief Executive Officer of the Company, and Dr. James R. Higgins, a director of the Company, entered into a Fourteenth Amendment to Credit Agreement (the “Fourteenth Credit Agreement Amendment”), pursuant to which the parties agreed to amend the Credit Agreement to (i) provide that the Maturity Date shall be extended to *June **30,* *2026.* The note payable balance of $20,700,000 ($700,000 is due to related parties) as of *March **31,* *2026,* remains unchanged from prior periods. The associated interest continues to accrue on a straight-line monthly basis.\n\n \n\nAccounting Treatment\n\n \n\nOn *March **30,* *2026* the Company entered into the Fourteenth Credit Agreement (as detailed above). Under ASC *470*-*60*-*55*-*10,* a concession is deemed to have been granted, and the agreement is to be accounted for as a troubled debt restructuring by debtors (TDR). The Company did *not* have any debt restructuring costs and legal costs were expensed, as appropriate. \n\n \n\n**NOTE 10 **–**LEASE**\n\n \n\nUnder ASC Topic *842,* Leases (“ASC *842”*), operating lease expense is generally recognized evenly over the term of the lease. The Company has an operating lease primarily consisting of office space with a remaining lease term of 57 months.\n\n \n\nOn *May 8, 2025*we entered into the Fifth Amendment to Commercial Lease Agreement, extending the term of the Lease until *December 31, 2030 (*\"New Expiration Date\"). We have concluded the Fifth Amendment to Commercial Lease Agreement qualifies as a lease modification (renewal) under ASC *842.* As a result of the modification, The Company has remeasured the lease liability and right-of-use (ROU) asset as of the effective date of the amendment. The Company’s weighted average remaining lease term is approximately 4.75 years, and the weighted average discount rate applied in the calculation of the lease liability was approximately 12.5%.\n\n \n\nThe Company has further concluded that the Lease Extension has *no* effects on the classification of the Lease, which continues as an operating lease. Rent expense for the *three* months ended *March 31, 2026*and *2025* totaled $79,073 and $69,306, respectively.\n\n \n\n*15*\n\n[Table of Contents](#toc)\n\nCAREVIEW COMMUNICATIONS, INC. AND SUBSIDIARIES\n\nNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nUndiscounted Cash Flows\n\n \n\nFuture lease payments included in the measurement of operating lease liability on the Condensed Consolidated Balance Sheets as of *March 31, 2026*, for the following *five* fiscal years and thereafter as follows:\n\n \n\n**Quarter ending**\n \n**Operating**\n \n\n**March 31, 2026**\n \n**Leases**\n \n\nRemaining 2026\n  161,948 \n\n2027\n  224,567 \n\n2028\n  233,550 \n\n2029\n  242,892 \n\n2030\n  252,608 \n\nTotal minimum lease payments\n $1,115,565 \n\nLess effects of discounting\n  (316,402)\n\nPresent value of future minimum lease payments\n $799,163 \n\n \n\n \n\n**NOTE 11 **–** SEGMENT REPORTING**\n\n \n\nThe Company has one reportable segment as it only reports operating results on an aggregated basis to the Chief Executive Officer who serves as the Chief Operating Decision Maker (CODM). The Company derives revenue and manages the business activities on a consolidated basis. For the *three* months ended *March **31**,**2026,* and *2025**,* all revenues from the Company’s external customers were derived, and all long-lived assets were located, in the United States.\n\n \n\nThe CODM is regularly provided with financial information, including revenue and expenses, in a format consistent with the Company’s Condensed Consolidated Statements of Operations. The CODM regularly reviews reported consolidated revenues, significant expenses, and consolidated net loss. The CODM considers these measures, as well as other factors, such as an assessment of a new product’s future market potential, when determining how to allocate company-wide resources. The CODM does *not* review assets at a different level or category than those disclosed in the Condensed Consolidated Balance Sheets.\n\n \n\nSignificant expenses are amounts that are regularly provided to the CODM and included in consolidated net income (loss), the Company’s primary measure of its single segment’s profit or loss.\n\n \n\nSegment financial information used by the CODM to assess segment performance and make decisions about resource allocation was as follows:\n\n \n\n**Profit and Loss-One Segment** \n \n\nThree Months Ended\n \n\n  March 31, 2026  March 31, 2025 \n\n**Revenues:** **$****2,191,342**  **$****2,239,347** \n\n**Operating expenses:**\n ** **** **** ** ** **** **** **\n\nSalary and wages  956,421   1,042,283 \n\nInstallation expenses  60,102   79,874 \n\nProfessional fees  58,173   152,162 \n\nEquipment costs  19,920   40,151 \n\nRent  79,073   69,306 \n\nHealth insurance  81,938   75,463 \n\nPaid time off  78,298   84,568 \n\nOther segment expenses  826,574   830,250 \n\nTotal operating expenses  2,160,499   2,374,057 \n\n**Operating income (loss)** ** **30,843  ** ****(134,710****)**\n\nOther income and (expense)  (787,043)  (786,090)\n\n**Net Income (loss)** **$****(756,200****)** **$****(920,800****)**\n\n \n\n \n\n**NOTE 12 **–**SUBSEQUENT EVENTS**\n\n \n\nThe Company has evaluated subsequent events through *May 13, 2026*.\n\n \n\n \n\n*16*\n\n[Table of Contents](#toc)"}