ASPN — OPERATIONAL VIEW P&L

Q1 2026 vs Q4 2025 Variance Analysis
Operator-Controllable View | Prepared by FP&A — April 2026
Excludes non-operational & fixed items: Other Revenue, Depreciation & Amortization, Interest Expense, Rent, Management Fees, Legal Settlements.
Q1'26 Net Rev
$1.92M
▲+43.7% vs Q4'25
Q1'26 Var Costs
$2.51M
▼+20.6% favorable vs Q4'25
Q1'26 Op Margin
($592K)
▲+67.6% vs Q4'25
Op Margin %
-30.8%
+106.0 pts QoQ
QoQ $ Var (OpM)
$1.24M
Favorable
Headline: Material loss reduction but ASPN remains unprofitable in Q1.

Operational P&L — Q4 '25 vs Q1 '26

Line ItemQ4 2025Q1 2026$ Variance% Variance
NET REVENUE
Commercial Insurance - Net$3.12M$349K($2.77M)-88.8%
Personal Injury - Net($1.78M)$1.57M$3.35M+188.2%
TOTAL OPERATIONAL NET REVENUE$1.34M$1.92M$584K+43.7%
VARIABLE / CONTROLLABLE COSTS
Salaries & Wages$799K$691K$108K+13.6%
Employee Benefits$84K$71K$13K+15.1%
Physician Fees$2.17M$1.61M$552K+25.5%
Professional Fees$9K$12K($3K)-31.9%
Repairs & Maintenance$204$3K($3K)-1,285.5%
Supplies & Other$8K$15K($7K)-82.9%
Telephone & Utilities$5K$6K($925)-19.2%
Insurance$44K$30K$14K+31.7%
Advertising$3K$0$3K+100.0%
Travel, Meals & Entertainment$0$160($160)n/m
Other Expense$46K$71K($24K)-52.4%
TOTAL VARIABLE COSTS$3.16M$2.51M$652K+20.6%
OPERATIONAL MARGIN
OPERATING MARGIN($1.83M)($592K)$1.24M+67.6%
Operating Margin %-136.8%-30.8%+106.0 pts-
Variance convention: Revenue & Margin — positive = favorable (Q1 > Q4). Expenses — positive = favorable (expense decreased Q4 → Q1). Green = favorable, Red = unfavorable.

Management Commentary

Revenue: Net operational revenue improved from $1.34M to $1.92M (+$585K / +43.7%). The largest movement is the non-recurrence of December 2025's ($2.75M) negative net month — Q1 monthly net revenue is $739K / $738K / $444K. CI gross billings collapsed $31.5M (-83%) with CI contractuals down in lockstep (-$28.7M / -82%), confirming Q4 gross figures reflected a billing/recognition anomaly. PI gross down $1.97M (-26%) with PI contractual relief of $5.32M.

Costs: Variable costs fell $652K (-20.6%) — favorable. Physician fees are the dominant lever, down $552K (-25%). Salaries modestly lower -$108K (-14%). Limited change elsewhere.

Margin: Operating margin improved from ($1.83M) to ($592K) — a $1.24M favorable move (+67.6%) but ASPN remains loss-making. The improvement is largely the non-recurrence of December's ($3.71M) loss month; Q1 monthly OpM trajectory: ($146K) → ($69K) → ($377K).

Monthly Revenue & Variable Costs (Q4'25 ➔ Q1'26)

Monthly Operating Margin

Top 2 Drivers & Operational Flags

Key Performance Drivers
  1. Dec-25 Anomaly Non-Recurrence: December 2025 alone posted ($3.71M) operating loss on negative net revenue. Q1 reverts to underlying run-rate; majority of $1.24M improvement is this anomaly clearing, not operational gain.
  2. Physician Fee Efficiency: Physician fees down $552K (-25%) — meaningful controllable cost improvement in Q1.
Operational Flags
  • Still Loss-Making: Q1 OpM ($592K) and OpM% (-30.8%) — variable costs ($2.51M) exceed net revenue ($1.92M). Underlying business does not cover its operational cost base.
  • March Deterioration: Monthly OpM trajectory: ($146K) → ($69K) → ($377K). March worsened sharply — investigate March net revenue collapse to $444K.
  • Dec-25 CI Billing Anomaly: December showed ($2.75M) net revenue driven by CI gross billings and associated contractual write-down. Confirm this was a one-time billing reconciliation and not a payer dispute.
Advanced Diagnostics Healthcare System — Confidential — ASPN Operational View — Generated April 2026