Heart Test Laboratories(HSCS) - 2025 Q1 - Quarterly Report

AI Technology Development - The company is focused on developing AI-based ECG technology to enhance cardiac screening capabilities [106]. - The MyoVista wavECG device is a proprietary 12-lead ECG that integrates AI-ECG algorithms for improved diagnostic information [106]. - The company entered into License Agreements with Mount Sinai to commercialize AI-ECG algorithms for various cardiovascular conditions [108]. - The FDA has cleared an algorithm for low ejection fraction (less than 40%) under the 510(k) pathway, with a submission for the MyoVista wavECG device planned for Q1 2025 [115]. - The company has received a patent for MyoVista wavelet technology from the Indian Patent Office in May 2024 [122]. Financial Performance - The company incurred approximately $300,000 in accrued interest to FRV as part of a debt extension agreement [122]. - The Streeterville Note issued to the company amounts to $2,510,000, with an interest rate of 8.5% per annum and a maturity of 18 months [123]. - Operating expenses primarily consist of research and development and selling, general, and administrative expenses [125]. - Research and development expenses include costs related to clinical trials, regulatory compliance, and personnel-related costs [126]. - Research and development expenses increased to $1.2 million for the three months ended July 31, 2024, up by $659,000 or 117% compared to the same period in 2023, primarily due to consulting costs for the MyoVista Insights Cloud Platform [129]. - Selling, general, and administrative expenses were approximately $0.9 million for the three months ended July 31, 2024, an increase of $86,000 or 11% compared to the same period in 2023, mainly due to payroll and professional expenses related to the reverse stock split [129]. - Total operating expenses reached $2.1 million for the three months ended July 31, 2024, reflecting a $745,000 or 56% increase from $1.3 million in the same period of 2023 [128]. - The net loss for the period ended July 31, 2024, was $2.1 million, a $685,000 or 50% increase compared to a net loss of $1.4 million in the same period of 2023 [128]. - As of July 31, 2024, the company had an accumulated deficit of $69.4 million and stockholder's equity of $5.9 million, with working capital of $4.7 million [131]. - The company incurred net cash used in operating activities of $2.0 million for the three months ended July 31, 2024, compared to $1.4 million for the same period in 2023 [137]. Capital Raising Activities - The company raised approximately $1.6 million from the sale of Common Stock under the Lincoln Park Purchase Agreement as of the date of the Quarterly Report [132]. - The company received approximately $9.8 million in net proceeds from the sale of Common Stock under the amended EDA as of the date of the Quarterly Report [133]. - The company entered into a Note Purchase Agreement with Streeterville for an unsecured promissory note of $2.51 million, resulting in approximately $1.9 million in net cash proceeds [134]. - The company reported a decrease in cash and cash equivalents to approximately $4.3 million as of July 31, 2024, down from $5.8 million as of April 30, 2024 [135].