Kestra Medical Technologies (KMTS) FY2026 10-K Risk Factors: 80 New, 91 Dropped

What the changes say

IPO and secondary offering produced $215.8 million of net proceeds and increased interest income by $5.2 million.
U.S. commercial territories expanded from 80 to approximately 130, increasing salesforce hiring, training, and infrastructure demands.
Net loss widened to $131.6 million, accumulated deficit reached $651.9 million, and operating cash outflow reached $81.7 million.
ASSURE WCD reimbursement, manufacturing costs, clinical evidence, and continued product development remain central to performance.

What changed since the prior 10-K

New

New
3933 Lake Washington Blvd., Kirkland, WA: 16,700 square feet of research and development and general administrative office space which also serves as our corporate headquarters. The lease term will expire on April 30, 2029, and we may extend the term of the lease for up to an additional period of five years
The Kirkland headquarters and research space leases expire April 30, 2029, creating future renewal or relocation requirements.
New
221 E Southlake Blvd, Southlake, TX: 350 square feet of general and administrative office space. The lease term will expire on May 31, 2027, and we may extend the term of the lease or move to a different leased premise
Small Texas and Ireland offices expire in 2027 and 2026, requiring renewals, relocations, or additional facilities as operations expand.
New
Ite m 3. Legal Proceedings
The company describes ordinary-course litigation, its Nasdaq listing, 276 record holders, and no history of cash dividends.
New
Use of Proceeds from our Initial Public Offering
The IPO and overallotment generated $215.8 million net, with proceeds used according to the existing prospectus plan.
New
It em 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The business depends on connected monitoring, therapeutic intervention, and clinical data for cardiovascular disease through its Cardiac Recovery System.
New
Key Factors Affecting Our Results of Operations and Performance
Growth requires recruiting and retaining sales personnel while improving ASSURE WCD costs, reimbursement realization, supply purchasing, and manufacturing efficiency.
New
Research and Development Expenses
The company continues funding new products, product enhancements, clinical trials, and commercialization activities despite expecting R&D to decline as a percentage of revenue.
New
Selling, General and Administrative Expenses
Selling and administrative costs include expanding sales and marketing, field clinical support, distribution, revenue-cycle management, facilities, insurance, and professional services.
New
Interest and Other Expense (Income)
Results are affected by term-loan interest, investment income, debt-cost amortization, and changes in warrant fair value.
New
Provision for Income Taxes
The company has $81.0 million of tax-loss carryforwards and other deferred tax assets but applies a full valuation allowance.
New
Interest income increased by $5.2 million, or 161%, to $8.4 million for the fiscal year ended April 30, 2026, from $3.2 million for the fiscal year ended April 30, 2025, primarily due to higher cash and investment balances following the IPO and secondary offering
Higher post-IPO cash and investments increased interest income by $5.2 million, while warrant-liability remeasurement increased other expense.
New
Liquidity and Capital Resources
The company remains loss-making, with a $131.6 million annual loss, $651.9 million accumulated deficit, and $81.7 million operating cash outflow.
New
Funding Requirements and Contractual Obligations
New
As of April 30, 2026, we had cash, cash equivalents, and investments of $262.2 million and an accumulated deficit of $651.9 million
New
Net proceeds from the Tranche A Loan were approximately 20.0 million, after deducting estimated debt issuance costs, fees and expenses, and repaying in full the obligations under Term Loan 2024 on July 10, 2026. The remaining proceeds will be used to fund our general corporate and working capital requirements
New
Cash Flows from Operating Activities
New
Cash Flows from Investing Activities
New
Cash Flows from Financing Activities
New
Off-Balance Sheet Arrangements
New
Critical Accounting Policies and Significant Management Estimates
New
Impairment of Long-Lived Assets
New
contemporaneous valuations performed by third-party valuation firms
New
Fair value of common equity. The fair value of our common units (prior to IPO) or Common Shares (following the IPO) on the date of the grant
New
Expected dividend. The dividend yield assumption is zero, as we have no history of, or plans to make, dividend payments on our common units or our common shares
New
Emerging Growth Company and Smaller Reporting Company Status
New
Ite m 7A. Quantitative and Qualitative Disclosures About Market Risk
New
Concentrations of Credit Risk
New
Ite m 8. Financial Statements and Supplementary Data
New
Evaluation of Disclosure Controls and Procedures
New
Management’s Report on Internal Control over Financial Reporting
New
Changes in Internal Control over Financial Reporting
New
Inherent Limitations on Effectiveness of Disclosure Controls and Procedures and Internal Control over Financial Reporting
New
It em 9B. Other Information
New
It em 10. Directors, Executive Officers and Corporate Governance
New
It em 11. Executive Compensation
New
It em 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
New
It em 13. Certain Relationships and Related Transactions, and Director Independence
New
Ite m 14. Principal Accounting Fees and Services
New
Financial Statement Schedules. All financial statement schedules are omitted because they are not applicable or required, or the information required to be set forth therein is included in the financial statements or notes thereto included in the Index to Financial Statements of this Annual Report
New
Certificate of Deposit of Memorandum of Increase of Share Capital (previously filed as Exhibit 3.2 to the Current Report on Form 8-K (File No. 001-42549) filed on March 7, 2025 and incorporated herein by reference)
New
Description of Share Capital (previously filed as Exhibit 4.4 to the Annual Report on Form 10-K filed on July 17, 2025 and incorporated herein by reference)
New
Cover Page Interactive Data File (embedded within the Inline XBRL document)
New
Opinion on the Financial Statements
New
The accompanying notes are an integral part of these consolidated financial statements
New
Kestra Medical Technologies, Ltd. is a commercial stage medical device company, which principally generates revenue through leasing the ASSURE© System, which consists of a Wearable Cardioverter Defibrillator (“WCD”) , to patients
New
As of April 30, 2026, the Company’s principal sources of liquidity consisted of $ 262,201 of cash, cash equivalents, and investments
New
In March 2025, the Company raised $ 215,789 in proceeds in the IPO after deducting underwriting discounts and commissions and before deducting IPO offering costs of $ 5,398
New
Based on the Company’s current operating plan, the Company believes that its existing cash, cash equivalents, and investments will be sufficient to fund the Company’s planned operating expenses and capital expenditure requirements for at least the next 12 months from the date of issuance of these financial statements
New
Cash, Cash Equivalents and Restricted Cash
New
The Company considers investments with an original maturity greater than three months and remaining maturities less than 12 months to be short-term investments. The Company classifies those investments that are not required for use in current operations and that mature in more than 12 months as long-term investments
New
Fair Value of Financial Instruments
New
Disposable Medical Equipment Supplies
New
The Company determines whether a contract conveys the right to control the use of an identified asset for a period of time if the contract contains both the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset
New
The Company periodically reviews its long-lived assets, including property and equipment and right-of-use assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable
New
The Company accounts for share-based compensation for employee and non-employee awards in accordance with ASC 718, Compensation - Stock Compensation. ASC 718 requires the recognition of compensation expense using a fair value-based method for costs related to all share-based awards, including stock options
New
Payments on Behalf of Shareholder
NewBusiness Risk
Recently Adopted Accounting Pronouncements
NewBusiness Risk
Accounting Pronouncements Not Yet Adopted
NewBusiness Risk
3. Prepaid Expenses and Other Current Assets
NewBusiness Risk
4. Property and Equipment
NewBusiness Risk
In February 2025, the Company further amended its office lease to expand the leased space, commencing on April 1, 2025
NewBusiness Risk
In May 2025, the Company entered into a new lease agreement for an office in Texas, commencing on May 15, 2025. The lease is set to expire on May 31, 2027
NewBusiness Risk
Cash paid for operating leases was $ 2,081 and $ 655 for the years ended April 30, 2026 and 2025, respectively
NewBusiness Risk
As of October 31, 2024, the Company determined that the revenue milestone related to the second tranche was not met and the third tranche was not probable of being achieved. As a result, the Company expensed the asset related to debt issuance costs and facility fees in the amount of $ 462
NewBusiness Risk
On September 4, 2025, the lender fully exercised the 2033 Warrant to purchase Common Shares on a cashless basis, resulting in the issuance of 100,397 Common Shares and the cancellation of the 2033 Warrant
NewBusiness Risk
10. Redeemable Preferred Stock
NewBusiness Risk
11. Non-Controlling Interest
NewBusiness Risk
Restricted Common Units and Restricted Shares
NewBusiness Risk
Share-based compensation expense associated with restricted common units and restricted Common Shares is immaterial and recorded within selling, general and administrative expense
NewBusiness Risk
Three-year service period restricted unit grants which vest one-third on each of the first, second and third anniversaries of the date of grant. The fair value of these restricted stock units is determined based upon the Company’s stock price on the date of grant and expensed over the service period
NewBusiness Risk
Time Based Restricted Stock Units
NewBusiness Risk
Performance Based Restricted Stock Units
NewBusiness Risk
During the year ended April 30, 2026 , the Company granted 217,351 market-based restricted stock units that vest upon achieving both market conditions and service conditions
NewBusiness Risk
Employee Stock Purchase Plan
NewBusiness Risk
The Company does not accrue a deferred tax liability on stock basis of its subsidiaries since the tax basis exceeds the book basis. There are no unremitted foreign earnings
NewBusiness Risk
Unrecognized Tax Benefit - End of Year
NewBusiness Risk
14. Commitments and Contingencies
NewBusiness Risk
15. Defined Contribution Plan
NewBusiness Risk
16. Net Loss Per Share Attributable to Common Shareholders
NewBusiness Risk
(deficit) represents the number of shares legally outstanding as of the latest consolidated balance sheet date. This differs from the number of outstanding shares disclosed for basic and diluted net loss per share, which has been retrospectively adjusted for common shares outstanding but not yet vested

Dropped

DroppedRisks Related to Our Business
We have a limited operating history, which may make it difficult for you to evaluate our current business and its likelihood of success and viability. If we are unable to manage our business and any fluctuations in our business effectively, our business and growth prospects could be materially and adversely affected
Limited operating history made business performance, growth prospects, and viability difficult to evaluate.
DroppedRisks Related to Our Business
the introduction and market acceptance of new, more effective or less expensive competing products and technologies
Competition from newer, more effective, or cheaper products and the challenges of managing an evolving business.
DroppedRisks Related to Our Business
the scope, prioritization and number of our research and development initiatives
The scale, prioritization, and number of research and development programs could increase costs and execution demands.
DroppedRisks Related to Our Business
We generate revenue primarily from the lease of our ASSURE WCD as part of our Cardiac Recovery System platform, and we are therefore highly dependent on our ASSURE WCD for our continued success
Dependence on leasing ASSURE WCD, which generated nearly all revenue through the Cardiac Recovery System.
DroppedRisks Related to Our Business
Our business is dependent upon healthcare providers, hospitals and patients adopting our solutions, and if we fail to obtain and maintain broad adoption, our business would be adversely affected
Growth depended on healthcare providers, hospitals, and patients adopting ASSURE WCD and related solutions.
DroppedRisks Related to Our Business
the time commitment that may be required to gain familiarity with and establish the infrastructure, including billing processes, required to adopt our products
Customers may need substantial time to learn the products and establish required billing infrastructure.
DroppedRisks Related to Our Business
neither experimental nor investigational
Coverage and reimbursement varied among third-party payors and required costly supporting evidence.
DroppedRisks Related to Our Business
Our operating results fluctuate significantly and may not fully reflect the underlying performance of our business
Revenue, profitability, and cash flow could fluctuate significantly between reporting periods.
DroppedRisks Related to Our Business
advances and trends in new technologies and industry standards
Technological advances, industry standards, and seasonal insurance-deductible effects could affect revenue.
DroppedRisks Related to Our Business
If we are unable to manage the anticipated growth of our business, our future revenue and operating results may be harmed
Rapid expansion could strain sales, marketing, patient support, clinical operations, and management resources.
DroppedRisks Related to Our Business
Our clinical study initiatives may be complex, lengthy, expensive and carry uncertain outcomes. Future trials and studies by us or others may fail to replicate positive results observed to date
Clinical studies could be lengthy, costly, inconclusive, or fail to replicate earlier ASSURE WCD results.
DroppedRisks Related to Our Business
our current or future products may have undesirable side effects or other unexpected characteristics
Current or future products could produce side effects or unexpected characteristics that delay approval or harm operations.
DroppedRisks Related to Our Business
We have limited experience supplying our ASSURE WCD in quantities and providing services on a broad scale that is both commercially successful and meets clinical needs, and production or service delays or shortfalls may occur, which could adversely affect our business
DroppedRisks Related to Our Business
to increase our revenue significantly and scale our services, we will be required to attract, hire, train and retain qualified personnel
DroppedRisks Related to Our Business
We depend on a limited number of third-party suppliers and contract manufacturers to manufacture and recondition our ASSURE WCD and its components, which could make us vulnerable to supply shortages and price fluctuations that could harm our business
DroppedRisks Related to Our Business
delays in delivery by our suppliers due to changes in demand from us or their other customers and consequently, our inability to fulfill our contractual obligations to deliver our products to our end-users
DroppedRisks Related to Our Business
If our suppliers’ manufacturing facilities become damaged or inoperable, or if they are required to vacate a facility, they may be unable to manufacture our products or we may experience delays in production or an increase in costs, which could adversely affect our results of operations
DroppedRisks Related to Our Business
Performance issues, service interruptions or price increases by our shipping carriers could adversely affect our business and harm our reputation and ability to provide our services on a timely basis
DroppedRisks Related to Our Business
If we are unable to support demand for our current or future products or services, our business could suffer
DroppedRisks Related to Our Business
If we are unable to successfully expand our sales and customer service resources, including hiring and retaining relevant personnel, and adequately address our customers’ needs, it could negatively impact our profitability and market acceptance of our ASSURE WCD and other products we may develop in the future
DroppedRisks Related to Our Business
If the ASSURE WCD is not effective or if we or our competitors receive negative publicity about the effectiveness of WCDs, then our brand and reputation could suffer and our business could be adversely impacted
DroppedRisks Related to Our Business
Billing for our products is complex, and we must dedicate substantial time and resources to the billing process
DroppedRisks Related to Our Business
incorrect or missing patient history, indications or billing information
DroppedRisks Related to Our Business
If our competitors are able to develop or market products and services that are more effective, or gain greater acceptance in the marketplace, than any products and services we develop, our commercial opportunities will be reduced or eliminated
DroppedRisks Related to Our Business
larger patent portfolios and other intellectual property rights
DroppedRisks Related to Our Business
regulatory status and speed to market
DroppedRisks Related to Our Business
recruitment and retention of a qualified and experienced sales force
DroppedRisks Related to Our Business
Our marketing and sales practices, as well as our interactions with healthcare providers, may entail risks that could result in significant liability, require us to change our business practices and restrict our operations in the future
DroppedRisks Related to Our Business
Our ability to compete depends on our ability to innovate successfully
DroppedRisks Related to Our Business
Due to the significant resources required for the development of our products, we may expend our limited resources to pursue the development and commercialization of select products and fail to capitalize on other products that may be more profitable or for which there is a greater likelihood of success
DroppedRisks Related to Our Business
Our outstanding debt may affect our ability to operate our business and secure additional financing in the future
DroppedRisks Related to Our Business
We depend on our senior management team and the loss of one or more key employees or an inability to attract and retain highly skilled employees could harm our business
DroppedRisks Related to Our Business
We are subject to complex and rapidly evolving laws, regulations, rules, and standards relating to data privacy and security, and our failure to comply with such laws, regulations, rules and standards could adversely affect our business, financial condition, results of operations and prospects
DroppedRisks Related to Our Business
diversion of management attention from pursuing our business strategy
DroppedRisks Related to Our Business
We bear the risk of warranty claims on our products
DroppedRisks Related to Our Business
increased legal and accounting compliance costs
DroppedRisks Related to Our Business
Consolidation among commercial payors could result in payors eliminating coverage or demanding price concessions, which may affect our ability to offer our products at prices necessary to support our current business strategies
DroppedRisks Related to Our Business
Our management team has limited experience managing a public company
DroppedRisks Related to Our Business
We intend to evaluate current and projected resource needs on a regular basis and hire additional qualified resources as needed. Our ability to maintain qualified and adequate resources to support the Company and our projected growth will be a critical component of our internal control environment
DroppedRisks Related to Our Business
We are subject to risks from legal and arbitration proceedings that may prevent us from pursuing our business activities or require us to incur additional costs in defending against claims or paying damages
DroppedRisks Related to Our Business
Our estimates relating to our market and forecasts of market growth are based on a number of complex assumptions and estimates that may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, our business may not increase at similar rates, if at all
DroppedRisks Related to Our Business
Macroeconomic conditions could materially adversely affect our business, financial condition, results of operations and prospects
DroppedRisks Related to Our Business
We may be subject to additional taxes if our transfer pricing arrangements are challenged or we fail to establish tax residency in Ireland
DroppedRisks Related to Our Business
Taxing authorities may disagree with and may challenge our tax positions. If our tax positions are not sustained in the event of such challenge, we could be required to pay additional taxes, interest, penalties or other costs which could impact our results of operations and financial condition
DroppedRisks Related to Our Business
challenges to the transfer pricing policies related to our structure
DroppedRisks Related to Our Business
If we are required to reclassify independent contractors as employees, we may incur additional costs and taxes which could adversely affect our business, financial condition, results of operations and prospects
DroppedRisks Related to Our Intellectual Property
attempt to obtain a license to the relevant intellectual property from third parties, which may not be available on reasonable terms or at all, or from third parties who may attempt to license rights that they do not have
DroppedRisks Related to Our Intellectual Property
In the event of a successful claim against us for infringement, misappropriation or other violation of third-party intellectual property rights, we may have to pay substantial damages
DroppedRisks Related to Our Intellectual Property
We may be subject to claims challenging the inventorship of our patents and other intellectual property
DroppedRisks Related to Our Intellectual Property
We may become involved in litigation or administrative proceedings related to intellectual property, including litigation to protect, enforce or defend the validity of our intellectual property
DroppedRisks Related to Our Intellectual Property
Our efforts to obtain intellectual property protection and the intellectual property rights we obtain may be inadequate, and our business may be adversely affected as a result
DroppedRisks Related to Our Intellectual Property
If we are unable to protect the confidentiality of our trade secrets and other proprietary information, our business and competitive position may be harmed
DroppedRisks Related to Our Intellectual Property
We may be subject to claims that our employees, consultants or independent contractors have wrongfully used or disclosed confidential information or alleged trade secrets of third parties or competitors or are in breach of non-competition or non-solicitation agreements with our competitors or their former employers
DroppedRisks Related to Our Intellectual Property
If our trademarks and trade names are not adequately protected, we may not be able to build name recognition in our markets and our business may be adversely affected
DroppedRisks Related to Our Intellectual Property
Changes in U.S. or foreign patent law or their interpretations could diminish the value of patents in general, thereby impairing our ability to protect our existing and future products
DroppedRisks Related to Our Intellectual Property
Obtaining and maintaining patent protection depends on compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated if we fail to comply with these requirements
DroppedRisks Related to Our Intellectual Property
Intellectual property rights do not necessarily address all potential threats
DroppedRisks Related to Our Intellectual Property
we cannot assure that our commercial activities or products will not infringe the intellectual property rights of others; and
DroppedRisks Related to Our Intellectual Property
We include technology in our products that is licensed to us by third parties. Any loss of our rights to this technology could prevent us from selling our products
DroppedRisks Related to Our Intellectual Property
Disputes regarding our current licensing arrangements may have an adverse effect on our business
DroppedRisks Related to Government Regulation
Changes in the regulatory environment may make it more difficult and costly for us to manufacture, market or distribute our products, or to obtain approval for any future products
DroppedRisks Related to Government Regulation
If we fail to comply with healthcare and other governmental regulations, we could face substantial penalties and our business, results of operations and financial condition could be adversely affected
DroppedRisks Related to Government Regulation
the federal physician self-referral prohibition, commonly known as the Stark Law; and
DroppedRisks Related to Government Regulation
Our team members, consultants and commercial partners may engage without our awareness in misconduct or other improper activities, including non-compliance with regulatory standards and requirements despite any policies we may have in place to prevent such misconduct, and we may be found liable for their actions
DroppedRisks Related to Government Regulation
post-marketing surveillance, including reporting of deaths or serious injuries, recalls, corrections and removals
DroppedRisks Related to Government Regulation
the manufacturing process or facilities we use may not meet applicable requirements; and
DroppedRisks Related to Government Regulation
Material modifications to our ASSURE WCD or any future products may require new PMAs, 510(k) clearances, CE Marks or other premarket approvals or may require us to recall or cease marketing our products and services until clearances are obtained
DroppedRisks Related to Government Regulation
If we or our suppliers fail to comply with the federal, state and international regulations, our operations could be delayed or shut down and our revenue could suffer
DroppedRisks Related to Government Regulation
If we do not obtain international regulatory registrations, clearances, certifications or approvals for our products, we will be unable to market and offer our products outside of the United States
DroppedRisks Related to Government Regulation
Healthcare reform measures could hinder or prevent the commercialization of our products and our ability to achieve profitability
DroppedRisks Related to Government Regulation
the availability of capital
DroppedRisks Related to Government Regulation
If we fail to maintain required licenses, certifications, or accreditation, or if we do not fully comply with requirements to provide notice to or obtain approval from regulatory authorities due to changes in our ownership structure or operation, it could adversely impact our operations
DroppedRisks Related to Government Regulation
Compliance with environmental laws and regulations could be expensive, and failure to comply with these laws and regulations could subject us to significant liability
DroppedRisks Related to Government Regulation
Our products contain third-party open source software components and failure to comply with the terms of the underlying open source software licenses could restrict our ability to sell our products, affect our ability to protect our proprietary information and subject us to possible litigation
DroppedRisks Related to Ownership of Our Common Shares
Bain Capital has significant influence over us, and its interests may conflict with ours or yours
DroppedRisks Related to Ownership of Our Common Shares
We are an emerging growth company and a smaller reporting company, and our compliance with the reduced reporting and disclosure requirements applicable to emerging growth companies and smaller reporting companies could make our common shares less attractive to investors
DroppedRisks Related to Ownership of Our Common Shares
Our share price may be volatile, and its market price may decline disproportionately in response to developments that are unrelated to our operating performance
DroppedRisks Related to Ownership of Our Common Shares
developments in our industry
DroppedRisks Related to Ownership of Our Common Shares
We may be a passive foreign investment company, which could result in adverse U.S. federal income tax consequences to United States Holders
DroppedRisks Related to Ownership of Our Common Shares
A sale of a substantial number of shares of our common shares may cause the price of our common shares to decline
DroppedRisks Related to Ownership of Our Common Shares
We are a Bermuda company, and it may be difficult for you to enforce judgments against us or our directors and executive officers
DroppedRisks Related to Ownership of Our Common Shares
Bermuda law differs from the laws in effect in the United States and may afford less protection to our shareholders
DroppedRisks Related to Ownership of Our Common Shares
There are regulatory limitations on the ownership and transfer of our common shares
DroppedRisks Related to Ownership of Our Common Shares
We have anti-takeover provisions in our amended and restated bye-laws that may discourage a change of control, even if an acquisition would be beneficial to our shareholders, and may prevent attempts by our shareholders to replace or remove our current management
DroppedRisks Related to Ownership of Our Common Shares
the ability of our Board of Directors to determine the powers, preferences and rights of preference shares and to cause us to issue the preference shares without shareholder approval
DroppedRisks Related to Ownership of Our Common Shares
Our amended and restated bye-laws provide that the Supreme Court of Bermuda or the federal district courts of the United States are the exclusive forum for certain types of lawsuits and this may have the effect of discouraging lawsuits against our directors and officers
DroppedRisks Related to Ownership of Our Common Shares
We have historically not paid cash dividends and do not expect to pay cash dividends in the foreseeable future, and, as a result, any return on investment may be limited to the value of our shares
DroppedRisks Related to Ownership of Our Common Shares
Future securities issuances could result in significant dilution to our shareholders and impair the market price of our common shares
DroppedRisks Related to Ownership of Our Common Shares
We incur increased costs as a result of operating as a public company, and our management is required to devote substantial time to compliance with our public company responsibilities and corporate governance practices
DroppedRisks Related to Ownership of Our Common Shares
If we are unable to implement and maintain effective internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our reported financial information, and the market price of our common shares may be negatively affected
DroppedRisks Related to Ownership of Our Common Shares
If securities or industry analysts do not publish research or reports about our business, or publish negative reports about our business, our share price and trading volume could decline

Reworded

85% rewritten
Additionally, these material weaknesses could result in a misstatement of substantially all of the financial statement accounts and disclosures that would result in a material misstatement to our annual or interim consolidated financial statements that would not be prevented or detected
The disclosure now emphasizes that no auditor attestation accompanies management’s internal-control report, replacing detailed IT-control deficiencies while retaining material-misstatement risk.

All 81 risk factors

Headings as the filing states them, in filing order.

Other

013933 Lake Washington Blvd., Kirkland, WA: 16,700 square feet of research and development and general administrative office space which also serves as our corporate headquarters. The lease term will expire on April 30, 2029, and we may extend the term of the lease for up to an additional period of five yearsNew
02221 E Southlake Blvd, Southlake, TX: 350 square feet of general and administrative office space. The lease term will expire on May 31, 2027, and we may extend the term of the lease or move to a different leased premiseNew
03Ite m 3. Legal ProceedingsNew
04Use of Proceeds from our Initial Public OfferingNew
05It em 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsNew
06Key Factors Affecting Our Results of Operations and PerformanceNew
07Research and Development ExpensesNew
08Selling, General and Administrative ExpensesNew
09Interest and Other Expense (Income)New
10Provision for Income TaxesNew
11Interest income increased by $5.2 million, or 161%, to $8.4 million for the fiscal year ended April 30, 2026, from $3.2 million for the fiscal year ended April 30, 2025, primarily due to higher cash and investment balances following the IPO and secondary offeringNew
12Liquidity and Capital ResourcesNew
13Funding Requirements and Contractual ObligationsNew
14As of April 30, 2026, we had cash, cash equivalents, and investments of $262.2 million and an accumulated deficit of $651.9 millionNew
15Net proceeds from the Tranche A Loan were approximately 20.0 million, after deducting estimated debt issuance costs, fees and expenses, and repaying in full the obligations under Term Loan 2024 on July 10, 2026. The remaining proceeds will be used to fund our general corporate and working capital requirementsNew
16Cash Flows from Operating ActivitiesNew
17Cash Flows from Investing ActivitiesNew
18Cash Flows from Financing ActivitiesNew
19Off-Balance Sheet ArrangementsNew
20Critical Accounting Policies and Significant Management EstimatesNew
21Impairment of Long-Lived AssetsNew
22contemporaneous valuations performed by third-party valuation firmsNew
23Fair value of common equity. The fair value of our common units (prior to IPO) or Common Shares (following the IPO) on the date of the grantNew
24Expected dividend. The dividend yield assumption is zero, as we have no history of, or plans to make, dividend payments on our common units or our common sharesNew
25Emerging Growth Company and Smaller Reporting Company StatusNew
26Ite m 7A. Quantitative and Qualitative Disclosures About Market RiskNew
27Concentrations of Credit RiskNew
28Ite m 8. Financial Statements and Supplementary DataNew
29Evaluation of Disclosure Controls and ProceduresNew
30Management’s Report on Internal Control over Financial ReportingNew
31Additionally, these material weaknesses could result in a misstatement of substantially all of the financial statement accounts and disclosures that would result in a material misstatement to our annual or interim consolidated financial statements that would not be prevented or detected85% rewritten
32Changes in Internal Control over Financial ReportingNew
33Inherent Limitations on Effectiveness of Disclosure Controls and Procedures and Internal Control over Financial ReportingNew
34It em 9B. Other InformationNew
35It em 10. Directors, Executive Officers and Corporate GovernanceNew
36It em 11. Executive CompensationNew
37It em 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder MattersNew
38It em 13. Certain Relationships and Related Transactions, and Director IndependenceNew
39Ite m 14. Principal Accounting Fees and ServicesNew
40Financial Statement Schedules. All financial statement schedules are omitted because they are not applicable or required, or the information required to be set forth therein is included in the financial statements or notes thereto included in the Index to Financial Statements of this Annual ReportNew
41Certificate of Deposit of Memorandum of Increase of Share Capital (previously filed as Exhibit 3.2 to the Current Report on Form 8-K (File No. 001-42549) filed on March 7, 2025 and incorporated herein by reference)New
42Description of Share Capital (previously filed as Exhibit 4.4 to the Annual Report on Form 10-K filed on July 17, 2025 and incorporated herein by reference)New
43Cover Page Interactive Data File (embedded within the Inline XBRL document)New
44Opinion on the Financial StatementsNew
45The accompanying notes are an integral part of these consolidated financial statementsNew
46Kestra Medical Technologies, Ltd. is a commercial stage medical device company, which principally generates revenue through leasing the ASSURE© System, which consists of a Wearable Cardioverter Defibrillator (“WCD”) , to patientsNew
47As of April 30, 2026, the Company’s principal sources of liquidity consisted of $ 262,201 of cash, cash equivalents, and investmentsNew
48In March 2025, the Company raised $ 215,789 in proceeds in the IPO after deducting underwriting discounts and commissions and before deducting IPO offering costs of $ 5,398 New
49Based on the Company’s current operating plan, the Company believes that its existing cash, cash equivalents, and investments will be sufficient to fund the Company’s planned operating expenses and capital expenditure requirements for at least the next 12 months from the date of issuance of these financial statementsNew
50Cash, Cash Equivalents and Restricted CashNew
51The Company considers investments with an original maturity greater than three months and remaining maturities less than 12 months to be short-term investments. The Company classifies those investments that are not required for use in current operations and that mature in more than 12 months as long-term investmentsNew
52Fair Value of Financial InstrumentsNew
53Disposable Medical Equipment SuppliesNew
54The Company determines whether a contract conveys the right to control the use of an identified asset for a period of time if the contract contains both the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified assetNew
55The Company periodically reviews its long-lived assets, including property and equipment and right-of-use assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverableNew
56The Company accounts for share-based compensation for employee and non-employee awards in accordance with ASC 718, Compensation - Stock Compensation. ASC 718 requires the recognition of compensation expense using a fair value-based method for costs related to all share-based awards, including stock optionsNew
57Payments on Behalf of ShareholderNew

Business Risk

58Recently Adopted Accounting PronouncementsNew
59Accounting Pronouncements Not Yet AdoptedNew
603. Prepaid Expenses and Other Current AssetsNew
614. Property and EquipmentNew
62In February 2025, the Company further amended its office lease to expand the leased space, commencing on April 1, 2025New
63In May 2025, the Company entered into a new lease agreement for an office in Texas, commencing on May 15, 2025. The lease is set to expire on May 31, 2027New
64Cash paid for operating leases was $ 2,081 and $ 655 for the years ended April 30, 2026 and 2025, respectivelyNew
65As of October 31, 2024, the Company determined that the revenue milestone related to the second tranche was not met and the third tranche was not probable of being achieved. As a result, the Company expensed the asset related to debt issuance costs and facility fees in the amount of $ 462 New
66On September 4, 2025, the lender fully exercised the 2033 Warrant to purchase Common Shares on a cashless basis, resulting in the issuance of 100,397 Common Shares and the cancellation of the 2033 WarrantNew
6710. Redeemable Preferred StockNew
6811. Non-Controlling InterestNew
69Restricted Common Units and Restricted SharesNew
70Share-based compensation expense associated with restricted common units and restricted Common Shares is immaterial and recorded within selling, general and administrative expenseNew
71Three-year service period restricted unit grants which vest one-third on each of the first, second and third anniversaries of the date of grant. The fair value of these restricted stock units is determined based upon the Company’s stock price on the date of grant and expensed over the service periodNew
72Time Based Restricted Stock UnitsNew
73Performance Based Restricted Stock UnitsNew
74During the year ended April 30, 2026 , the Company granted 217,351 market-based restricted stock units that vest upon achieving both market conditions and service conditionsNew
75Employee Stock Purchase PlanNew
76The Company does not accrue a deferred tax liability on stock basis of its subsidiaries since the tax basis exceeds the book basis. There are no unremitted foreign earningsNew
77Unrecognized Tax Benefit - End of YearNew
7814. Commitments and ContingenciesNew
7915. Defined Contribution PlanNew
8016. Net Loss Per Share Attributable to Common ShareholdersNew
81(deficit) represents the number of shares legally outstanding as of the latest consolidated balance sheet date. This differs from the number of outstanding shares disclosed for basic and diluted net loss per share, which has been retrospectively adjusted for common shares outstanding but not yet vestedNew

Other Kestra Medical Technologies 10-Ks

FY2025 10-K risk factors
92 risks
Kestra Medical Technologies faces intense competition in the wearable cardioverter defibrillator market dominated by ZOLL's LifeVest and new adhesive-based alternatives.
Filed Jul 17, 2025

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The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.