Helius Medical Technologies(US:HSDT)2019-11-12 20:13Financial Data and Key Metrics Changes - The company reported total revenue of $150,000 for Q3 2019, compared to no revenue in the prior year period [44] - Gross profit for Q3 2019 was $61,000, with operating expenses increasing by $907,000 or 19% year-over-year to $5.8 million [45] - Operating loss for Q3 2019 was $5.7 million, compared to an operating loss of $4.9 million for the prior year period [49] - The net loss for Q3 2019 was $5.6 million or $0.21 per share, compared to a net loss of $4.5 million or $0.19 per share for Q3 2018 [50] Business Line Data and Key Metrics Changes - Revenue in Q3 was primarily driven by sales of PoNS devices to three new clinics in Toronto, Calgary, and Ottawa [44] - Patient treatment starts were 23 in Q1, 38 in Q2, and 32 in Q3, with a modest decline in Q3 attributed to scheduling issues during summer vacations [23][24] Market Data and Key Metrics Changes - The company reported 66 million impressions from marketing efforts, resulting in 4 million video views and 356 clinic consultations during the quarter [28] - The primary drivers of patient starts in Q3 were the founding clinics in Montreal and Surrey, along with three new clinics that became operational [24] Company Strategy and Development Direction - The company is focused on expanding access to PoNS treatment by increasing the number of authorized clinics and pursuing marketing initiatives to raise awareness [25][27] - A strategic decision was made to acquire Heuro Canada to improve commercial efficiency and accelerate the adoption of PoNS technology [33][34] - The company aims to secure reimbursement from insurers for treatments, having already obtained two fully reimbursed patient treatments [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the early commercialization progress and the potential for continued growth in Q4 2019 [60] - The company is actively engaged with the FDA to refine its strategy for resubmitting an application for de novo classification of the PoNS device [39][41] Other Important Information - The company updated its revenue guidance for 2019 to a range of $1.5 million to $1.6 million, down from the previous range of $1.6 million to $2 million [57] - The company had approximately $9 million in cash as of September 30, 2019, down from $25.6 million at the end of 2018 [51] Q&A Session Summary Question: Can you talk about increased traffic at the open PoNS centers in Canada as a result of some of the online work that you've done? - Management noted 356 engagements in clinics, with a mix of early adopters and those waiting for reimbursement [67][68] Question: Can you talk about the reimbursement levels established in the two instances mentioned? - Reimbursement amounts were between $22,000 and $30,000 for the two treatments, with efforts to template successful reimbursement patterns for broader application [71][72] Question: Can you provide a range of what the burn is expected to go down to in Q4? - Management indicated that the burn rate would be reduced, excluding costs associated with the Heuro acquisition [79] Question: How will the company finance itself during 2020? - Management is exploring all possible ways to raise funds while focusing on protecting existing shareholders [85]