Exchange: NASDAQ | Sector: Healthcare | Industry: Medical Devices
Q4 2024
Published: Jul 29, 2024
Earnings Highlights
EPS of $-2.73 increased by 83.4% from previous year
Net income of -1.85M
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HeartSciences Inc (HSCSW) QQ4 2024 Results – Cash Burn Persists in a Revenue-Deferred Pathway with Strengthened Liquidity
Executive Summary
HeartSciences reported a Q4 2024 period with no reported revenue and a consolidated net loss of $1.846 million, or $2.73 per share, driven by heavy operating expenses and ongoing R&D investment. EBITDA was negative $1.816 million, and free cash flow stood at negative $1.646 million as of the quarter. The company ended the period with $5.808 million in cash and equivalents and a net cash position of approximately $4.771 million, supported in part by financing activity and a favorable, though atypical, foreign exchange impact evidenced in the cash balance data. While top-line revenue remains undisclosed for QQ4 2024, HeartSciences continues to scale its wavECG/MyoVista diagnostic platform in a period of prolonged product development, regulatory considerations, and potential partnerships, underscoring a high-risk, high-uncertainty investment profile typical of early-stage medical device developers.
The quarterly results underscore a business model in a pre-revenue phase where progress hinges on product commercialization, regulatory milestones, and external collaborations. The liquidity cushion provides runway for near-term development and partnership discussions, but sustained profitability will require monetization of the wavECG platform or other revenue streams. Investors should monitor near-term milestones, including any regulatory updates, clinical evidence expansion, and partnership announcements that could translate into revenue-generating opportunities.
Key Performance Indicators
Operating Income
-1.88M
QoQ: -23.23% | YoY:-17.59%
Net Income
-1.85M
QoQ: -12.31% | YoY:-10.78%
EPS
-2.73
QoQ: 10.78% | YoY:83.42%
Revenue Trend
Margin Analysis
Key Insights
Revenue: 4Q4 2024 revenue is not disclosed in the filing data; cost of revenue reported at $9,201 with gross loss of $9,201, implying reporting gaps for top-line data in the quarter. - Net income and EPS: Net income of -$1.846 million and an EPS of -$2.73 for Q4 2024. - EBITDA: -$1.816 million for the quarter, reflecting high operating burn. - Operating expenses: Total operating expenses of $1.8799 million, with R&D at $1.0461 million and SG&A contributions of $833,678. - Cash flow: Net cash used in operating activities of -$1.536 million; capex of -$109,615; free cash flow of -$1.6459 million. - Balance sheet highlights: Cash and cash equivalents of $5.808 million; total assets $9.503 million; total liabilities $2.186 million; total stockholders’ equity $7.318 million; long-term debt $434,045 and short-term debt $602,293. Inventory stood at $629,179; deferred revenue at $667,144. - Liquidity ratios (as reported): Current ratio 4.20, quick ratio 3.84, cash ratio 3.32; net debt is negative (-$4.771 million) indicating a net cash position. - Ownership/dilution indicators: Common stock issued in financing activities of $451,182 during the period.
Financial Highlights
- Revenue: 4Q4 2024 revenue is not disclosed in the filing data; cost of revenue reported at $9,201 with gross loss of $9,201, implying reporting gaps for top-line data in the quarter. - Net income and EPS: Net income of -$1.846 million and an EPS of -$2.73 for Q4 2024. - EBITDA: -$1.816 million for the quarter, reflecting high operating burn. - Operating expenses: Total operating expenses of $1.8799 million, with R&D at $1.0461 million and SG&A contributions of $833,678. - Cash flow: Net cash used in operating activities of -$1.536 million; capex of -$109,615; free cash flow of -$1.6459 million. - Balance sheet highlights: Cash and cash equivalents of $5.808 million; total assets $9.503 million; total liabilities $2.186 million; total stockholders’ equity $7.318 million; long-term debt $434,045 and short-term debt $602,293. Inventory stood at $629,179; deferred revenue at $667,144. - Liquidity ratios (as reported): Current ratio 4.20, quick ratio 3.84, cash ratio 3.32; net debt is negative (-$4.771 million) indicating a net cash position. - Ownership/dilution indicators: Common stock issued in financing activities of $451,182 during the period.
Income Statement
Metric
Value
YoY Change
QoQ Change
Gross Profit
-9.20K
-100.39%
-243.27%
Operating Income
-1.88M
-17.59%
-23.23%
Net Income
-1.85M
-10.78%
-12.31%
EPS
-2.73
83.42%
10.78%
Key Financial Ratios
currentRatio
4.2
grossProfitMargin
100%
operatingProfitMargin
-10.1%
netProfitMargin
-9.94%
returnOnAssets
-19.4%
returnOnEquity
-25.2%
debtEquityRatio
0.14
operatingCashFlowPerShare
$-2.27
freeCashFlowPerShare
$-2.43
priceToBookRatio
0
priceEarningsRatio
-0
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Notes on transcript: No earnings-call transcript was provided in the data set. Consequently, there are no management quotes or verbatim remarks to cite from an earnings call for QQ4 2024. In the filing and related materials, management discussions typically center on ongoing product development for wavECG/MyoVista and cadence of milestone-driven partnerships, but specific call quotes are not available here.
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Forward Guidance
The filing does not include formal guidance for the next fiscal year. Given the lack of reported revenue in QQ4 2024 and a sizable quarterly burn, the near-term outlook will hinge on monetization of the wavECG platform, regulatory progress, and potential strategic partnerships or licensing deals. Management commentary in other HeartSciences disclosures often emphasizes pipeline development, pilot programs, and customer adoption as catalysts for revenue, but concrete targets or throughput timelines are not disclosed in the provided data. Assessment: - Likelihood of achieving meaningful top-line growth in the near term appears contingent on external collaborations and regulatory/regulatory-adjacent milestones. - Risks include continued operating losses, dilution risk if additional equity financing is pursued, and potential delays in product commercialization. - Key catalysts to monitor: regulatory status updates, trial outcomes or real-world evidence supporting wavECG utility, and partner/contract announcements that could convert pipeline progress into revenue. - Baseline for investors: maintain awareness of cash burn trajectory and any interim financing needs; monitor runway and milestone-based milestones that could unlock revenue opportunities.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
HSCSW Focus
1.00%
-10.10%
-25.20%
-0.28%
HSCS
0.00%
0.00%
-25.20%
-84.70%
CLPT
58.90%
-69.10%
-21.80%
-9.05%
LUCD
-1.01%
-11.01%
4.69%
-1.38%
PAVM
-1.23%
-15.62%
26.10%
-60.30%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given QQ4 2024 results, HeartSciences presents a high-risk, high-uncertainty investment with a near-term emphasis on liquidity management and milestone-driven value creation. The company’s lack of reported revenue and substantial quarterly cash burn imply that meaningful upside depends on converting its wavECG/MyoVista pipeline into revenue through regulatory milestones, partnerships, or licensing deals. The current liquidity position provides runway for development and partnership negotiations over the near term, but sustained upside hinges on tangible revenue generation and improved gross profitability. Investors should monitor: (1) any regulatory progress or clinical validation that could unlock adoption and reimbursement, (2) announced partnerships or licensing agreements, and (3) ongoing capital-raising needs or financing efficiency. In comparison to typical pre-revenue medical-device peers, HeartSciences’ risk-reward remains focused on milestones rather than current profitability, with a recommended stance leaning toward a long-dated, high-risk allocation and close monitoring of cash burn and collaboration outcomes.
Key Investment Factors
Growth Potential
Potential revenue acceleration hinges on commercial adoption of wavECG/MyoVista, expansion into clinics and hospitals, and potential licensing or partnerships with larger medical device or healthcare IT players.
Profitability Risk
Primary risks include ongoing cash burn without visible revenue, reliance on successful regulatory approvals and market adoption, potential need for additional equity financing, competitive dynamics in cardiovascular diagnostics, and reimbursement/coverage uncertainties.
Financial Position
A relatively strong liquidity stance for a microcap with cash of ~$5.81M and a net cash position (~$4.77M); however, retained earnings are deeply negative, reflecting accumulated losses and balance-sheet perishables typical of pre-revenue biotech/medical device ventures. The balance sheet shows modest debt levels and tangible assets, with significant R&D commitments.
SWOT Analysis
Strengths
Strong liquidity cushion with $5.81M cash and a net cash position (~$4.77M); low debt burden.
Preliminary but potentially scalable cardiovascular diagnostic platform (wavECG/MyoVista) with a clear clinical target.
Current current ratio and quick ratio indicate solid short-term liquidity (CFO risk mitigated by cash reserves).
Management has historically signaled a focus on partnerships and collaboration to monetize the wavECG platform.
Weaknesses
No reported revenue in QQ4 2024, resulting in operational burn with no top-line contribution.
High R&D intensity and SG&A expenses relative to the limited revenue base; negative gross profit due to lack of revenue.
Accumulated deficit reflected in retained earnings (-$67.36M) and lack of realized profitability.
Reliance on external milestones (regulatory approvals, partnerships) for revenue realization; no visible near-term earnings catalysts.
Complex data integrity concerns in some ratios (e.g., anomalous FX impact and inconsistent margin indicators) that warrant cautious interpretation.
Opportunities
Growing demand for noninvasive cardiovascular diagnostics; potential licensing or strategic partnerships to monetize the wavECG platform.
Potential pilot programs or early adopter agreements with clinics or hospital networks to generate initial revenue streams.
Regulatory progress or clinical validation could unlock reimbursement pathways and broader adoption.
Threats
Regulatory delays or unfavorable determinations could postpone revenue generation.
Competitive pressure from established cardiovascular diagnostics players and emerging digital-health competitors.
Funding risk if external capital markets tighten; potential need for dilution to sustain operations.
Reimbursement and coverage uncertainties for new diagnostic devices may limit rapid revenue build.