HeartBeam Reports Significant Financial Challenges, Decline in Cash and Cash Equivalents

HeartBeam, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in cash and cash equivalents, which fell to $5.8 million from $16.2 million at the end of 2023. Total current assets also decreased to $6.1 million, down from $16.8 million, contributing to a total asset reduction to $6.7 million from $17.1 million. The accumulated deficit increased to $(51.4 million) from $(36.8 million) over the same period, while total stockholders’ equity dropped to $4.8 million from $15.9 million.

Operating expenses surged, with total expenses for the three months ending September 30, 2024, reaching $5.1 million, a 36% increase from $3.7 million in the same quarter of 2023. Research and development (R&D) expenses rose significantly by 78% to $2.9 million, compared to $1.6 million in the prior year. For the nine-month period, total operating expenses were $14.9 million, up 33% from $11.2 million in 2023. The net loss for the three months was $(5.0 million), a 43% increase from $(3.5 million) in the same period last year, while the nine-month net loss rose to $(14.5 million) from $(10.8 million).

The company reported net cash used in operating activities of $(10.3 million) for the nine months ended September 30, 2024, compared to $(9.2 million) in the same period of 2023. Financing activities provided only $105,000, a stark contrast to $25 million in the previous year, reflecting a significant decrease in capital raised through equity sales.

HeartBeam is currently focused on advancing its proprietary Vector Electrocardiography (VECG) technology, with a 510(k) submission for its HeartBeam System under review by the FDA. The company has completed patient enrollment for the VALID-ECG Study, which aims to validate its 12 Lead ECG Synthesis Software. Despite these advancements, HeartBeam anticipates no material commercial revenue in 2024, raising concerns about its ability to sustain operations without additional capital.

Strategically, HeartBeam has made key appointments, including Timothy Cruickshank as Chief Financial Officer and Robert Eno as Chief Executive Officer. The company is also refining its go-to-market strategy and has entered into a sales agreement to potentially raise up to $17 million through common stock sales. However, as of September 30, 2024, the company had only issued 50,000 shares under this agreement, leaving approximately $16.9 million available for future issuance.