Heart Test Laboratories(HSCS) - 2026 Q2 - Quarterly Report

Financial Position - HeartSciences reported stockholders' equity of $1,786,689 as of January 31, 2025, which is below the Nasdaq minimum requirement of $2.5 million[177]. - As of the date of the report, the Company has received approximately $1.9 million in net proceeds from the Streeterville Note[182]. - Cash and cash equivalents increased to approximately $2.0 million as of October 31, 2025, up from $1.1 million as of April 30, 2025[208]. - The company expects existing cash to be insufficient to fund operations for the next twelve months, raising substantial doubt about its ability to continue as a going concern[203]. Revenue and Expenses - HeartSciences expects to generate revenues from installation fees, SaaS usage fees, and fees associated with AI-ECG algorithms through the MyoVista Insights platform[172]. - Revenue for the three and six months ended October 31, 2025, was $2,000 and $4,000, respectively, compared to no revenue for the same periods in 2024[196]. - Research and development expenses decreased by $473,000, or 39%, for the three months and $700,000, or 29%, for the six months ended October 31, 2025, compared to the same periods in 2024[197]. - Selling, general, and administrative expenses increased by $562,000, or 71%, for the three months and $589,000, or 36%, for the six months ended October 31, 2025, compared to the same periods in 2024[198]. - Interest expense rose to $280,000 and $463,000 for the three and six months ended October 31, 2025, representing increases of 137% and 231%, respectively, compared to the same periods in 2024[199]. - The company incurred a net loss of $4.4 million for the six months ended October 31, 2025, with an accumulated deficit of $80.5 million[202]. - Net cash used in operating activities was $4.3 million for the six months ended October 31, 2025, primarily due to the net loss[211]. - Net cash provided by financing activities was $5.2 million during the six months ended October 31, 2025, primarily from the issuance of Series D Preferred Stock and warrants[212]. Funding and Stock Issuance - The Company has issued 1,912,383 Units consisting of Series D Preferred Stock and Warrants for gross proceeds of approximately $6.7 million[186]. - The Series D Preferred Stock Offering has a maximum offering amount of $15.0 million, with each Unit priced at $3.50[183]. - The company issued 1,912,383 Units for gross proceeds of approximately $6.7 million during the six months ended October 31, 2025[204]. Regulatory and Product Development - The MyoVista wavECG device was submitted to the FDA for 510(k) premarket clearance in December 2025[175]. - The Company received a "Breakthrough Device" designation from the FDA for its aortic stenosis ECG algorithm in June 2025[181]. - The Company plans to separate FDA submissions for the MyoVista wavECG device and the impaired cardiac relaxation AI-ECG algorithm due to updated clinical standards[173]. Operational Challenges - HeartSciences has experienced recurring losses and negative cash flows from operations, raising substantial doubt about its ability to continue as a going concern[176].