Helius Medical Technologies(HSDT) - 2020 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q3 2020 was $131,000, a decrease from $150,000 in Q3 2019, primarily driven by sales to neurotherapy clinics in Canada impacted by COVID-19 [18][19] - Gross profits increased by $48,000 or 79% year-over-year to $109,000 due to a temporary reduction in manufacturing activity [26] - Operating expenses decreased by $2 million or 35% year-over-year to $3.8 million, reflecting cost reduction initiatives [26] - Operating loss for Q3 2020 was $3.7 million compared to $5.7 million for the prior year [27] - Net loss for Q3 2020 was $3.5 million or $0.08 per share, compared to a net loss of $5.6 million or $0.22 per share in the same period last year [27] Business Line Data and Key Metrics Changes - Sales performance in Canada continued to be impacted by COVID-19, with clinics operating at approximately 50% of normal capacity due to federal and provincial restrictions [19][20] - The number of authorized PoNS clinic locations increased from 7 to 27 in less than a year, nearly a fourfold increase [22] Market Data and Key Metrics Changes - The regulatory strategy focuses on obtaining clearance for the PoNS device for multiple sclerosis (MS), with a submission made on August 4, 2020 [12][13] - The FDA requested additional information on October 19, 2020, which the company is preparing to address [14][15] Company Strategy and Development Direction - The company aims to reposition itself for growth by focusing on regulatory approval in the U.S. and expanding its commercial activities in Canada [9][32] - Future plans include leveraging the PoNS device as a platform technology for new indications in stroke, cerebral palsy, and wellness applications [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by COVID-19 but expressed confidence in the company's ability to progress on regulatory and commercial initiatives [31] - The company is committed to maintaining a disciplined approach to spending while exploring options to secure additional capital [29][30] Other Important Information - As of September 30, 2020, the company had $2.7 million in cash, down from $5.5 million at the end of 2019, with no outstanding debt [28] - A private placement closed on October 26, 2020, resulting in net proceeds of approximately $3.2 million [29] Q&A Session Summary Question: Why hasn't the company considered PoNS for Parkinson's? - Management indicated that while there is potential for the PoNS device in treating Parkinson's, the current focus is on indications with existing data. Future broader indications across multiple disease states are being considered [37]