10-Q: Odyssey Health Q3 2026 Financial Results

Odyssey Health reports a net income of $765,890 for the quarter ended April 30, 2026, while maintaining a going concern warning due to significant accumulated deficits.

Summary

• Reported net income of $765,890 for the three months ended April 30, 2026, compared to a net loss of $251,743 in the same period last year.
• Nine-month net loss totaled $3,319,181, driven largely by significant financing costs.
• Cash position improved to $297,806 as of April 30, 2026, up from $19,084 at July 31, 2025.
• Accumulated deficit reached $66,065,017.
• Working capital deficit stands at $9,749,657.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a high-risk situation; while the quarterly net income is positive, it is largely driven by non-cash accounting adjustments (derivative liability changes) rather than operational success, and the going concern warning remains.

Positives

• Achieved quarterly net income of $765,890.
• Cash balance increased significantly to $297,806.
• Successfully negotiated debt maturity extensions with key lenders including LGH Investments and Mast Hill.
• Recognized a gain of $85,369 from the extinguishment of accounts payable.

Negatives

• Accumulated deficit of $66,065,017 indicates severe long-term financial strain.
• Working capital deficit of $9,749,657 highlights liquidity challenges.
• Significant financing costs of $3,080,023 incurred during the nine-month period.
• Material weaknesses in internal control over financial reporting persist.

Risks

• Substantial doubt regarding the ability to continue as a going concern.
• Dependence on external financing to fund operations and meet debt obligations.
• Potential for significant dilution of existing shareholders through future equity issuances.
• Failure to obtain FDA clearance for product candidates would jeopardize the business model.
• Termination of the BreastCheck sub-license agreement due to contractual breaches by the licensor.

Future Outlook

Management expects to continue experiencing operating losses and negative cash flows. Future existence depends on raising additional capital through debt or equity and the successful development/FDA clearance of medical device candidates.

Management Comments

• Management acknowledges substantial doubt about the ability to continue as a going concern.
• Management is actively adjusting the business plan to reflect current liquidity expectations.

Industry Context

StockSavvy.ai notes that Odyssey Health operates in the high-risk, pre-revenue medical device sector, where reliance on toxic financing (convertible notes with variable conversion features) is common but creates significant overhang and dilution risk for retail investors.

Comparison to Industry Standards

• The company's reliance on high-interest debt and frequent maturity extensions is typical of distressed micro-cap biotech firms.
• Lack of revenue generation contrasts with established medical device peers who typically demonstrate commercial traction before reaching this stage of development.

Corporate Governance

Related Party Transactions

• Outstanding promissory notes payable to officers and directors totaling $100,000.
• Accrued salary and bonus obligations to CEO and CFO totaling $1,854,617.

Stakeholder Impact

• Shareholders face significant dilution risk from convertible debt and potential equity raises.
• Creditors hold priority over assets via various debt agreements.

Next Steps

• Continue efforts to raise additional capital.
• Pursue FDA clearance for CardioMap and Save-A-Life devices.
• Manage debt obligations maturing in late 2026.

Key Dates

Recommendation

The company is in a precarious financial position with a massive accumulated deficit, a going concern warning, and a business model heavily reliant on dilutive financing. The recent termination of a key licensing agreement further underscores the operational instability.

Keywords

Odyssey Health, ODYY, Medical Devices, Biotech, Going Concern, Convertible Debt, Mast Hill