HeartSciences Inc. Reports No Revenue and Increased Losses in Latest 10-Q Filing

HeartSciences Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending January 31, 2025. The company recorded no revenue during the quarter, a stark decline from $15,000 in the same period last year. For the nine months ending January 31, 2025, total revenue also fell to zero, down from $19,000 in the previous year. The company’s operating expenses surged to $2.37 million for the quarter, up 54% from $1.54 million in the prior year, and totaled $6.43 million for the nine-month period, a 45% increase from $4.44 million. This resulted in a net loss of $2.54 million for the quarter and $6.67 million for the nine months, compared to losses of $1.64 million and $4.76 million, respectively, in the previous year.

The company’s financial position has deteriorated, with cash and cash equivalents dropping to $2.60 million as of January 31, 2025, down from $5.81 million at the end of the previous fiscal year. HeartSciences also reported an accumulated deficit of $74.03 million, reflecting ongoing financial strain. The increase in operating expenses was primarily attributed to heightened research and development costs, which rose significantly due to consulting fees related to the development of the MyoVista Insights Cloud Platform and an increase in headcount. Selling, general, and administrative expenses also increased, driven by legal and professional fees.

Strategically, HeartSciences has been focusing on the development of its MyoVista wavECG device, which incorporates AI technology to enhance ECG diagnostics. The company is preparing for a 510(k) submission to the FDA for this device, aiming for submission in the first half of 2025. Additionally, HeartSciences has entered into collaboration agreements with institutions like Mount Sinai to commercialize AI-ECG algorithms, which are expected to enhance the clinical utility of their products. The company has also undergone a corporate name change and a reverse stock split to comply with Nasdaq listing requirements, which has allowed it to regain compliance with the minimum bid price requirement.

Despite these developments, the company faces significant liquidity challenges. Management has indicated that current resources are insufficient to fund operations for the next twelve months, raising substantial doubt about the company's ability to continue as a going concern. HeartSciences is exploring various financing options, including equity sales and potential partnerships, to secure the necessary capital for ongoing operations and product development. The company has already initiated an offering of Series D Convertible Preferred Stock, aiming to raise up to $15 million to support its financial needs.