Heart Test Laboratories(HSCS) - 2026 Q3 - 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[178]. - HeartSciences has received an extension from Nasdaq until September 15, 2025, to regain compliance with the Minimum Stockholders' Equity Requirement[179]. - As of January 31, 2026, the company had cash and cash equivalents of approximately $3.4 million, an increase of $2.3 million from $1.1 million as of April 30, 2025[210]. Revenue and Sales - Revenue for the nine months ended January 31, 2026, was $4,000, with no revenue reported for the same period in 2025, indicating a significant increase[198]. - The company has minimal revenues primarily from device sales and establishing distributor relationships outside the U.S.[190]. Expenses and Losses - The company has experienced recurring losses and negative cash flows from operations, raising substantial doubt about its ability to continue as a going concern[177]. - The company incurred a net loss of $6.4 million for the nine months ended January 31, 2026, with an accumulated deficit of $82.5 million as of the same date[203]. - Selling, general, and administrative expenses were approximately $1.3 million for the three months and $3.5 million for the nine months ended January 31, 2026, reflecting a decrease of 4% for the three months and an increase of 18% for the nine months compared to 2025[200]. - Research and development expenses decreased by $0.4 million, or 38%, for the three months ended January 31, 2026, and by $1.1 million, or 32%, for the nine months ended January 31, 2026, compared to the same periods in 2025[199]. - Interest expense was approximately $62,000 for the three months and $0.5 million for the nine months ended January 31, 2026, representing a decrease of 66% for the three months and an increase of 64% for the nine months compared to 2025[201]. Financing Activities - The company has raised approximately $6.7 million from the issuance of 1,912,383 Units during the nine months ended January 31, 2026, as part of a maximum offering of $15.0 million[206]. - Net cash provided by financing activities was $8.1 million for the nine months ended January 31, 2026, mainly from the issuance of Series D Preferred Stock and warrants[215]. - Net cash provided by financing activities was $2.6 million for the nine months ended January 31, 2025, primarily from the issuance of Common Stock under the Equity Line and net proceeds from the $2.5 million Streeterville Note[215]. Agreements and Developments - HeartSciences entered into a Note Purchase Agreement for $3.6 million with Streeterville Capital, LLC, with a 12% annual interest rate and a maturity of 18 months[182]. - The company entered into a Note Purchase Agreement with Streeterville, issuing an unsecured promissory note of $3.6 million, with net proceeds of approximately $3.0 million received[205]. - The MyoVista Insights platform was launched in May 2025 and is expected to generate revenue from installation fees and software-as-a-service usage fees[173]. - The MyoVista® wavECG™ device was submitted to the FDA for 510(k) premarket clearance on December 15, 2025[181]. - HeartSciences plans to develop and validate an impaired cardiac relaxation AI-ECG algorithm to align with updated clinical standards[174]. Cash Flow - Net cash used in operating activities was $5.8 million during the nine months ended January 31, 2026, primarily due to a net loss of $6.4 million[213]. - Net cash used by operating activities was $5.8 million for the nine months ended January 31, 2025, primarily due to a net loss of $6.7 million[214]. Accounting and Reporting - There have been no material changes to critical accounting policies and estimates from the previous annual report[216]. - Market risk disclosures are not required for smaller reporting companies[217].