Executive Summary
HeartSciences’ QQ4 2024 results reflect a pre-revenue, R&D-intensive stage typical of early AI-enabled medical device ventures. The quarter shows no reported revenue, with a gross loss of 9,201 and a total operating expense run-rate of 1.88 million, driven largely by R&D spend of 1.046 million and SG&A of 0.834 million. The company reported an operating loss of 1.879 million and a net loss of 1.846 million, translating to an EPS of -2.73. On a positive note, the balance sheet remains liquidity-rich: cash and cash equivalents of approximately 5.81 million and current ratios above 4x indicate a solid runway to fund ongoing product development and pre-commercial activities. Cash flow from operations was negative at about 1.54 million, with a free cash flow burn of roughly 1.65 million for the period. The sizable FX effect reported in the cash flow statement adds noise to near-term cash flows but does not alter the underlying liquidity position (net debt remains negative due to cash holdings).
Key takeaway for investors: the company is not yet monetizing its AI-enabled ECG solutions, but maintains a robust liquidity buffer to support product development, regulatory progression, and potential pilot/commercialization initiatives. Value creation will hinge on successful product validation, regulatory milestones, and the ability to convert pre-commercial activities into revenue growth over the next 6–12 quarters. Management commentary, where available, will be critical to gauge the degree of progress toward commercial traction and the anticipated timeline for revenue generation.
Key Performance Indicators
QoQ: -23.23% | YoY:-17.59%
QoQ: -12.31% | YoY:-10.78%
Key Insights
Revenue: Not disclosed for QQ4 2024; Cost of revenue: 9,201; Gross profit: -9,201; R&D expenses: 1,046,112; SG&A: 833,678; Other expenses: 54,563; Operating expenses: 1,879,790; EBITDA: -1,815,947; Operating income: -1,879,790; Net income: -1,846,164; EPS: -2.73; Weighted average shares: 676,598.
Liquidity and balance sheet highlights: Cash and cash equivalents: 5,807,648; Total current assets: 7,353,893; Total assets: 9,503,113; Total current liabilities: 1,751,767; Long-term debt: 434...
Financial Highlights
Revenue: Not disclosed for QQ4 2024; Cost of revenue: 9,201; Gross profit: -9,201; R&D expenses: 1,046,112; SG&A: 833,678; Other expenses: 54,563; Operating expenses: 1,879,790; EBITDA: -1,815,947; Operating income: -1,879,790; Net income: -1,846,164; EPS: -2.73; Weighted average shares: 676,598.
Liquidity and balance sheet highlights: Cash and cash equivalents: 5,807,648; Total current assets: 7,353,893; Total assets: 9,503,113; Total current liabilities: 1,751,767; Long-term debt: 434,045; Total liabilities: 2,185,812; Total stockholders’ equity: 7,317,301; Net debt: -4,771,310 (net cash).
Key efficiency and market indicators: Current ratio 4.20; Quick ratio 3.84; Cash ratio 3.32; Debt to assets 0.109; Debt to equity 0.142; Price-to-earnings (negative); Gross margin not meaningful with no reported revenue; Intrinsic metrics skewed by pre-commercial status. The company’s MSFT-like liquidity supports ongoing development though profitability and revenue generation remain in pre-revenue phase.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Gross Profit |
-9.20K |
-100.39% |
-243.27% |
| Operating Income |
-1.88M |
-17.59% |
-23.23% |
| Net Income |
-1.85M |
-10.78% |
-12.31% |
| EPS |
-2.73 |
83.42% |
10.78% |
Key Financial Ratios
operatingCashFlowPerShare
$-2.27
freeCashFlowPerShare
$-2.43
Management Commentary
Transcript insights could not be synthesized from the provided data as the earnings transcript is not included in the dataset. Earnings call quotes and management commentary are not available in the provided material.
Forward Guidance
There is no explicit forward guidance disclosed in the supplied data. Given the pre-revenue status and heavy R&D spend, near-term revenue milestones and EBITDA improvement depend on successful clinical validation, regulatory progress (FDA/CE), and timely commercialization of AI-enhanced ECG offerings (AIECG, MyoVista wavECG, and MyoVista Insights platform). Industry trends indicate rising interest in AI-assisted ECG analytics, but sales ramp remains a meaningful hurdle for early-stage medical devices companies. Investors should monitor: (1) any signed pilot agreements or channel partnerships, (2) regulatory milestones and associated timing, (3) cost discipline as clinical/evidence generation progresses, and (4) reversals or reductions in non-cash or one-off items that could cloud cash flow evolution.