HeartSciences Reports $4.1 Million Net Loss and Seeks Additional Funding

HeartSciences Inc. (formerly Heart Test Laboratories, Inc.) reported a net loss of $4.1 million for the six months ending October 31, 2024, compared to a loss of $3.1 million for the same period in the previous year. The company did not generate any revenue during the current quarter, a decline from $4,000 in revenue reported in the same quarter of 2023. Operating expenses increased significantly, with research and development costs rising to $2.4 million, an 83% increase year-over-year, primarily due to consulting costs associated with the development of the MyoVista Insights Cloud Platform and an increase in personnel. Selling, general, and administrative expenses were approximately $1.6 million, reflecting a slight increase of 4% compared to the previous year.

The company’s financial position has deteriorated, with total assets decreasing to $7.8 million as of October 31, 2024, down from $9.5 million at the end of the previous fiscal year. Cash and cash equivalents also fell to $4.1 million, a decrease of $1.8 million from April 30, 2024. HeartSciences reported an accumulated deficit of $71.5 million, raising concerns about its ability to continue as a going concern. The company has been actively seeking additional funding through various means, including an equity line and an at-the-market offering, which have collectively raised approximately $11.0 million since inception.

Strategically, HeartSciences has made significant moves, including a corporate name change to HeartSciences Inc. effective October 17, 2024, and the completion of a reverse stock split on May 17, 2024, aimed at regaining compliance with Nasdaq listing requirements. The company has also entered into a note purchase agreement with Streeterville Capital, resulting in net proceeds of approximately $1.9 million. Furthermore, HeartSciences is preparing for a 510(k) submission to the FDA for its MyoVista wavECG device, which is expected in the first quarter of 2025, following a recent FDA clearance for a related algorithm.

Operationally, HeartSciences is focused on developing AI-based technology for its MyoVista wavECG device, which aims to enhance the clinical utility of ECGs in detecting a broader range of cardiac conditions. The company has established collaborations with institutions like Mount Sinai to commercialize AI-ECG algorithms, which are expected to be integrated into its product offerings. As of October 31, 2024, the company had 980,321 shares of common stock outstanding, reflecting its ongoing efforts to manage its capital structure amid financial challenges.

Looking ahead, HeartSciences acknowledges the need for additional capital to support its operations and product development. The company is exploring various financing options, including equity sales and strategic partnerships, to ensure it can meet its operational needs and continue its path toward FDA clearance and market entry for its innovative cardiac diagnostic solutions.