VANCOUVER, BC, Nov. 4, 2026 /CNW/ -- Light AI Inc. ("Light AI" or the "Company") (CBOE CA: ALGO) (FSE: 0HC) (OTCQB: OHCFF), a healthcare technology company focused on developing artificial intelligence-powered SaMD solutions designed to support rapid, accessible clinical assessment at the point of care, announced its third-quarter 2026 financial and operating results for the three- and nine-month periods ended September 30, 2026. Results are based on the unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2026 and 2025, prepared under IAS 34 Interim Financial Reporting and related MD&A, with figures in Canadian dollars unless stated otherwise.
Financial and Operating Results Summary for the three and nine months ended September 30, 2026
Summary Operating Results | Three
Months Sept 30 - 26 | Nine Months Sept 30 - 26 | Three Months Sept 30 - 25 | Nine Months Sept 30 - 25 |
|
| $ | $ | $ | $ |
|
Research and Development | (105,746) | 1,314,121 | 1,183,492 | 3,815,880 |
|
General and Administrative | 960,680 | 2,095,576 | 421,020 | 1,400,773 |
|
Share-based Compensation | 312,477 | 953,016 | 3,393,043 | 3,661,652 |
|
Accretion and interest | 300,618 | 334,677 | - | - |
|
Marketing and Investor Relations | 46,846 | 515,471 | 623,853 | 5,185,588 |
|
Total operating costs | 1,514,875 | 5,212,861 | 5,621,408 | 14,063,893 |
|
Interest, amortization and other charges | 20,174 | 13,958 | (67,593) | (194,124) |
|
Net loss and comprehensive loss | 1,535,049 | 5,226,819 | 5,553,815 | 13,869,769 |
|
|
|
|
|
|
|
Basic and diluted Earnings per Share | (0.01) | (0.04) | (0.05) | (0.12) |
|
Weighted average shares outstanding | 122,747,235 | 122,515,251 | 120,171,074 | 118,836,298 |
|
During the three months ended September 30, 2026, the Company incurred a net and comprehensive loss of $1,535,049, inclusive of non-cash, share-based compensation expense of $312,477 and accretion and interest expense of $300,618, compared with a net and comprehensive loss of $5,553,815 for the same quarter of last year, inclusive of noncash, share-based compensation expense of $3,393,043. The reduction of net and comprehensive loss $4,018,766 is mainly due to the following:
- A $2,240,288 decrease in general and administrative expenses, driven by a $3,080,566 decrease in share-based compensation expense, offset by accretion and interest expense of $300,618 for the most recent quarter;
- Recognition of the $1,077,088 refundable SR&ED credit from the 2025 taxation year as a reduction of research and development expenses, resulting in a net research and development recovery of $105,746 for the most recent quarter. Under IAS 20 the Company recognizes refundable tax credits when there is reasonable assurance that the amount will be received, which was determined in the quarter ended September 30, 2026. The Company incurs research and development costs on an ongoing basis which may result in an annual refundable tax credits. Before the credit, research and development expenses were $971,342, a decrease of $212,150 over the same quarter of the prior year;
- A $577,007 decrease in marketing and investor relations expenses.
The Company incurred a net and comprehensive loss of $5,226,819 for the nine months ended September 30, 2026, inclusive of non-cash share-based compensation expense of $953,016 and accretion and interest expense of $334,677, compared with $13,869,769 for the same period of 2025, inclusive of non-cash share-based compensation expense of $3,661,652. The $8,642,950 decrease was mainly due to:
- A $4,670,117 decrease in marketing and investor relations expense;
- A $1,679,156 decrease in general and administrative expense, driven by a $2,708,636 decrease in share-based compensation, offset by a $334,677 increase in accretion and interest.
- A $1,424,671 decrease in gross research and development expense, as well as a $1,077,088 reduction in research and development expense from the SR&ED refundable tax credit.
On September 30, 2026, the Company had Net Working Capital of $6,406,902 (December 31, 2025- $5,445,333), which includes cash and cash equivalents of $6,102,575 (December 31, 2025 - $6,455,977), a SR&ED refundable tax credit of $1,077,088 (December 31, 2025 - $Nil), current liabilities of $1,220,797 (December 31, 2025 - $1,475,258). Net working capital increased due to the issuance of a $5 million convertible debenture on June 19, 2026, as well as the recognition of the SR&ED refundable tax credit. The Company reported a cumulative deficit of $48,803,603 (December 31, 2025 - $43,576,784).
Net cash outflows from operating activities during the three and nine months ended September 30, 2026, were $1,754,075 and $5,241,180, respectively. The Company does not expect that its existing working capital is adequate to repay its convertible debenture due June 19, 2028 and continue its operating activities. It expects to require additional financing over the next 12 months.
"Following the receipt of our Health Canada Class II medical device licence for QuickScan™ Strep A clinical decision support software as a medical device, Light AI has undertaken a comprehensive review of the product's development and validation requirements," said John R. Luna, CEO and Director of Light AI Inc. "As disclosed in our October 2, 2026, material change report, we identified gaps in the objective evidence supporting the performance of the complete QuickScan™ Strep A Dx diagnostic system. We are addressing these findings through our established quality management system and corrective action process, including further machine-learning development, design controls, risk management, and system-level verification and validation. Patient safety, product performance, and objective scientific evidence remain central to our approach. While this work has affected our anticipated development timelines, we believe it is essential to establishing the evidence necessary to support future clinical and regulatory activities and the long-term potential of our technology."
Financial Statements and Management Discussion & Analysis
Please see the Company's unaudited condensed interim consolidated financial statements ("Financial Statements") and related Management's Discussion & Analysis ("MD&A") for more details. The Financial Statements for the three and nine months ended September 30, 2026, and related MD&A have been reviewed and approved by the Company's Audit Committee and Board of Directors. For a more detailed explanation and analysis, please refer to the MD&A that has been filed on SEDAR+ at www.sedarplus.ca.
Director Resignations
The Company announces that Steve Semmelmayer and Robert Cartagena have resigned as directors of the Company. Concurrently with Mr. Semmelmayer's resignation, the Company is pleased to announce the appointment of John W. Meekison as Interim Chair of the board of directors of the Company. The Company thanks Mr. Semmelmayer and Mr. Cartegena for their contribution to the Company and wishes them success in their future endeavors.
Non-IFRS and Other Financial Measures
This press release refers to the following non-IFRS measures:
"Net Working Capital" is calculated as current assets less current liabilities. Management believes Net Working Capital is a useful indicator for investors, and is used by management, for evaluating the operating liquidity of the Company. See "Net Working Capital Reconciliation" for a quantitative reconciliation of Net Working Capital to the most directly comparable financial measure.
Such non-IFRS measure does not have a standardized meaning under IFRS and may not be comparable to a similar measure disclosed by other issuers.
Net Working Capital Reconciliation | September 30,
2026 | December 31,
2025 |
| $ | $ |
Current Assets | 7,627,699 | 6,920,591 |
Less: Current Liabilities | (1,220,797) | (1,475,258) |
Net Working Capital | 6,406,902 | 5,445,333 |
About Light AI Inc. (CBOE CA: ALGO / FSE: 0HC / OTCQB: OHCFF)
Light AI Inc. is a healthcare technology company focused on developing artificial intelligence-powered SaMD solutions designed to support rapid, accessible clinical assessment at the point of care. The Company's core technology, Light AI QuickScan™, is a device-agnostic software platform that applies proprietary artificial intelligence and machine learning algorithms to medical images. The QuickScan™ platform is designed to operate across compatible imaging and computing hardware, providing flexibility for integration into a range of healthcare devices, clinical workflows and care settings without dependence on a single proprietary hardware platform.
ON BEHALF OF THE COMPANY
"Mark Orsmond"
Chief Financial Officer
Telephone:
(878)879-4744
Toll Free (888)804-9459
Email: morsmond@Light.ai
For more information, please contact the Company at investors@light.ai or visit https://light.ai/.
Website: https://light.ai/
LinkedIn: LinkedIn/company/Light AI
X (Formerly Twitter): @lightaihealth
Forward-Looking Information:
This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate," "believe," "expect," "estimate," "intend," "plan," "project," "target," "potential," "will," "may," "could," "should," "would," and similar expressions. These forward looking statements include the Company's expectations regarding its anticipated cost saving with respect to the restructuring, the technical and quality remediation program, including the assessment and the evaluation of the underlying technology and the existing machine-learning model, the Company's regulatory strategy and potential regulatory obligations, and the Company's business strategy, development plans, and market opportunities. Forward looking statements are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including such risks with the Company's ability to successfully execute its business plans, the Company's ability to raise additional capital, scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, the QuickScan™ platform does not perform as anticipated in clinical or actual patient settings, risks associated with the development, validation, and ongoing performance of artificial intelligence and machine learning algorithms, including algorithmic bias, data quality issues, and cybersecurity vulnerabilities, protection offered by the Company's patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the Company's products will not be as large as expected, and other risks detailed from time to time in the Company's documents filed under its SEDAR+ profile at www.sedarplus.ca. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The Company does not undertake any obligation to update any forward-looking information to reflect information, events, results, circumstances or otherwise after the date hereof or to reflect the occurrence of unanticipated events, except as required by law including securities laws.
SOURCE Light AI Inc.
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