Helius Medical Technologies(US:HSDT)2025-11-18 22:02Digital Asset Strategy - The Company has implemented a digital asset treasury strategy to acquire Solana tokens (SOL), which will serve as its primary treasury reserve asset, leveraging Solana's ~7% native staking yield[107]. - The Company plans to build an initial SOL position and significantly scale holdings over the next 12–24 months through a best-in-class capital markets program[114]. - The Company aims to evaluate staking, lending, and other opportunities within the Solana ecosystem to generate revenue from its SOL treasury[114]. - The Company’s investing activities were focused on executing its digital asset treasury strategy through the purchase of SOL[188]. Financial Position and Compliance - As of September 30, 2025, Marvel Operations Corp. has no outstanding loans under the Master Loan Agreement, indicating a strong financial position[112]. - The Nasdaq notified the Company of non-compliance with the minimum bid price requirement, providing a 180-day period to regain compliance[120]. - The Company received a notice from Nasdaq on March 31, 2025, indicating non-compliance with the minimum stockholders' equity requirement, as stockholders' equity fell below $2.5 million[123]. - Nasdaq granted the Company an extension until June 30, 2025, to regain compliance with both the Minimum Bid Price Requirement and the Stockholders' Equity Requirement[124]. - The Company regained compliance with the Minimum Bid Price Requirement following a reverse stock split in May 2025[125]. - The Company regained compliance with the Stockholders' Equity Requirement after completing a 2025 Offering, and is now compliant with all Nasdaq listing criteria[126]. Revenue and Expenses - Total revenue for Q3 2025 was $697 thousand, a significant increase of $646 thousand compared to $51 thousand in Q3 2024[152]. - Staking rewards income contributed $342 thousand in Q3 2025, compared to no income in Q3 2024[152]. - Gross profit for Q3 2025 was $594 thousand, a turnaround from a gross loss of $136 thousand in Q3 2024[155]. - Total operating expenses in Q3 2025 were $36,044 thousand, an increase of $32,110 thousand from $3,934 thousand in Q3 2024[152]. - Net loss for Q3 2025 was $352,768 thousand, compared to a net loss of $3,686 thousand in Q3 2024, reflecting a deterioration of $349,082 thousand[152]. - Selling, general and administrative expenses for Q3 2025 increased to $4,646 thousand, up from $2,857 thousand in Q3 2024, primarily due to a $1.5 million discretionary bonus[157]. Cash Flow and Financing Activities - Cash and cash equivalents as of September 30, 2025, were $124,051 thousand, up from $1,088 thousand as of December 31, 2024[178]. - The company raised $374.9 million in net proceeds from the 2025 PIPE Offerings, which alleviated concerns about its ability to continue as a going concern[179]. - The Company provided $400,682 thousand in net cash from financing activities during the nine months ended September 30, 2025, an increase of $393,728 thousand compared to the prior year[186]. - The Company generated $374.9 million in net proceeds from the September 2025 PIPE Offerings by issuing shares of Common Stock[189]. - The Company repaid promissory notes totaling $1.56 million during the nine months ended September 30, 2025[189]. Product Developments and Approvals - The Portable Neuromodulation Stimulator (PoNS) device has received marketing clearance in the U.S. for treating gait deficits due to mild-to-moderate symptoms of multiple sclerosis, with commercial sales commencing in April 2022[105]. - The PoNS device is authorized for sale in Canada for three indications, including treatment for chronic balance deficits due to traumatic brain injury[105]. - The PoNS Controller received a final Medicare payment rate of $532.27, while the PoNS Mouthpiece was set at $2,963.30 effective January 1, 2025[133]. - The Company announced its first reimbursement payment from Anthem Blue Cross Blue Shield for the PoNS Device on March 11, 2025, followed by approvals from United Healthcare and Aetna Healthcare[134]. - The Company partnered with Lovell Government Services to make the PoNS device available to federal healthcare systems, with prices set at $23,843.72 for the PoNS device and $7,344.97 for the mouthpiece[136]. - The Company established Revelation Neuro, Inc. to develop a new AI-powered brain-computer interface for personalized neurorehabilitation[140]. - The Stroke Registrational Program enrolled 159 patients across three studies, demonstrating significant improvements in gait deficits due to stroke[146]. - The Company filed an FDA 510(k) submission for the PoNS device label expansion seeking an indication for gait and balance deficit in chronic stroke patients[148]. Asset Valuation and Losses - Unrealized loss on digital assets for Q3 2025 was $30,540 thousand, reflecting the decline in value of SOL[159]. - The company recognized a change in fair value of derivative liability of $423,313 thousand in Q3 2025, primarily due to a decrease in stock price[163]. - For the nine months ended September 30, 2025, net cash used in operating activities was $(10,337) thousand, an increase of $(1,674) thousand compared to the same period in 2024[186]. - Net cash used in investing activities for the same period was $(267,383) thousand, a significant increase of $(267,378) thousand compared to 2024, primarily due to the purchase of SOL[186][188].