Helius Medical Technologies, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a decline in both revenue and profitability compared to the same period in the previous year. Total revenue for the three months ended September 30, 2024, was $51,000, down from $143,000 in 2023. For the nine months, revenue decreased to $368,000 from $510,000. Product sales also saw a notable decline, with net sales of $40,000 for the third quarter of 2024 compared to $132,000 in 2023.

The company's gross profit turned into a loss, with a gross loss of $136,000 for the third quarter of 2024, compared to a loss of $44,000 in the same quarter of the previous year. Operating expenses increased to $3,934,000 for the third quarter, up from $3,109,000 in 2023, primarily due to higher stock-based compensation and increased research and development costs associated with clinical trials.

Helius reported a net loss of $3,686,000 for the third quarter of 2024, slightly higher than the loss of $3,663,000 in the same period last year. For the nine months ended September 30, 2024, the net loss was $7,814,000, compared to $7,805,000 in 2023. The company’s accumulated deficit increased to $167.8 million as of September 30, 2024.

Cash and cash equivalents decreased to $3,468,000 from $5,182,000 at the end of 2023. However, the company raised approximately $5.5 million from a public offering in May 2024 and an additional $1.4 million through an at-the-market offering, which contributed to a net cash provided by financing activities of $6,954,000 for the nine months ended September 30, 2024.

Strategically, Helius is focusing on expanding its commercialization efforts for its Portable Neuromodulation Stimulator (PoNS®) device, which is currently not covered by Medicare or third-party payers in the U.S. The company is pursuing insurance coverage and reimbursement, with recent developments including the assignment of HCPCS codes for the PoNS device, which may facilitate future reimbursement.

The company is also facing challenges related to compliance with Nasdaq listing requirements, having received notifications regarding non-compliance with minimum bid price and stockholders' equity requirements. Helius plans to actively monitor its stock price and explore options to regain compliance.

Overall, Helius Medical Technologies continues to navigate a difficult financial landscape while pursuing strategic initiatives to enhance its market position and address operational challenges.