Medinotec Inc.

What they do

Medinotec Inc. was registered in Nevada on April 26, 2021, and effective April 26, 2022 acquired all capital stock of DISA Medinotec Proprietary Limited from Minoan Medical Proprietary Limited via Medinotec Capital Proprietary Limited. It generates revenue from internally designed and manufactured devices — the Trachealator, the Outflo Aortic Valve Dilation Balloon Catheter, and the Cape Cross family of PTCA balloon catheters — and from distribution of third-party cardiology and renal dialysis products, primarily in South Africa. Manufacturing, warehousing, quality, regulatory and administrative functions run from Johannesburg, and products are sold through distributors in South Africa, Namibia, Mauritius, the Middle East, Europe, South America and parts of Asia. As of February 28, 2026 the group had 48 employees and independent contractors (36 full-time employees, 12 independent contractors).

Revenue drivers

• Distribution agreement sales outside the United States — Distribution of third-party cardiology and renal dialysis products under exclusive or non-exclusive agreements, mainly in South Africa. Fiscal 2026 sales were $8,141,634, up $569,469 from $7,572,165 in fiscal 2025, and the largest revenue stream.
• Internally designed and manufactured sales outside the United States — Proprietary devices including Trachealator, Outflo and Cape Cross PTCA catheters sold through distributors outside the U.S. Fiscal 2026 sales were $975,969, up $112,632 from $863,337 in fiscal 2025.
• Internally designed and manufactured sales inside the United States — U.S. sales of proprietary devices, including Trachealator cleared by FDA 510(k) in November 2021. Fiscal 2026 sales were $611,860, down $66,245 from $678,105 in fiscal 2025, attributed partly to order timing.
• Renal dialysis distribution agreement (South Africa) — The agreement entered in the third quarter of fiscal 2025 contributed its first full year of revenue in fiscal 2026 and is cited as a driver of the distribution sales increase.

Recent performance

Fiscal 2026 revenue was $9,729,463 versus $9,113,607 in fiscal 2025, up $615,856 or 7%, driven by distribution sales outside the U.S. Net income for fiscal 2026 was $794,502, down from $2.2M in fiscal 2025, and diluted EPS was $0.07 versus $0.18. Operating cash flow was $906,798 in fiscal 2026 and $877,834 in fiscal 2025. At May 31, 2026 the balance sheet showed total assets of $7.0M, total liabilities of $1.1M, shareholder equity of $5.9M and cash and equivalents of $2.5M. Recent quarterly revenue was $3.2M (Aug 2025), $2.5M (Nov 2025), $1.8M (Feb 2026) and $2.7M (May 2026).

Strategy

Management expects established distribution relationships to remain an important revenue source while it broadens the product offering and expands sales of internally designed and manufactured products to reduce concentration over time. It is monitoring the weaker U.S. segment and has implemented initiatives intended to improve U.S. sales performance. The company expects the fiscal 2027 U.S. launch of OutFlo to support revenue growth in that segment, subject to customer demand, commercialization progress and market acceptance. It continues to evaluate additional regulatory filings and patent applications in selected territories based on commercial feasibility, regulatory requirements and available resources. No revenue was generated from related party affiliations in fiscal 2026.

Risks

• Customer and geographic concentration — Sales to DISA Life Sciences in South Africa represented approximately 89% of total revenue for fiscal 2026, so loss of that relationship or disruption in South Africa would materially harm revenue and cash flows.
• Liquidity and dilution — The company states it may require additional capital for U.S. commercialization, product development and potential acquisitions, and any future equity offering would dilute existing shareholders.
• Regulatory and product approval — U.S. and other market commercialization depends on maintaining clearances such as FDA 510(k) and complying with the EU Medical Device Regulation (MDR); delays or product modifications requiring new clearances could delay launches.
• South Africa, foreign exchange and trade — A significant portion of operations is located in South Africa, exposing the company to country-specific political, economic, infrastructure, exchange control, foreign currency, trade and tariff risks that can affect reported revenue and operating results.

Outlook

Management expects the fiscal 2027 U.S. launch of OutFlo, together with ongoing distribution relationships, to support revenue growth in the U.S. segment, although results depend on customer demand and commercialization progress. It expects to continue broadening the product offering and reducing concentration risk over time. The company notes foreign currency fluctuations may affect reported revenue and operating results period to period. It cautions that future performance remains subject to customer and geographic concentration, distributor execution, order timing, market demand and broader economic conditions.