HeartBeam Inc (BEAT)

HeartBeam Inc. Q1 2025 Financial Report

Report Date: 2025-05-14
Period Covered: Quarter Ended March 31, 2025

1. Overview

HeartBeam Inc. (NASDAQ: BEAT) is a cardiac technology company focusing on an ambulatory ECG platform that captures three-directional cardiac electrical signals and synthesizes a 12-lead ECG for remote monitoring and arrhythmia assessment. In Q1 2025, the company continued product development, advanced regulatory filings, and prepared for commercial readiness.

2. Income Statement Highlights (Unaudited, $K)

Analysis:
• R&D expenses rose 43.8% year-over-year due to increased headcount, stock-based compensation and product development activities.
• G&A decreased by 14.6%, reflecting lower non-cash stock-based compensation partly offset by higher insurance and commercialization readiness costs.

3. Balance Sheet & Cash Position ($K)

Liquidity:
• Q1 2025 net cash used in operations was $4.477 million; $3.760 million was deployed in short-term investments to balance yield and liquidity.
• Net cash provided by financing was $10.250 million from a February 2025 public offering.

4. Debt & Capital Structure

• HeartBeam has no long-term debt; current liabilities total $1.578 million, down 2.7% from year-end 2024.
• Outstanding shares at May 2025: 33,806,786.
• Warrant and option plans support future equity injections; no bank borrowings.

5. Reasons for Loss & Financing Activities

Loss Drivers:

• Continued R&D investment in pivotal clinical trials and software clearance (ValiECG).
• Precommercial overhead and regulatory submission costs.

Financing:

• February 2025 public equity raise of $115 million gross ($103 million net), with additional underwriter warrants.

6. Pros and Cons

Pros:

• FDA clearance for initial hardware and recent submissions for ECG synthesis software.
• Strong IP portfolio with multiple issued patents and pending applications globally.
• $82 million in combined cash and investments provides runway into late 2025.

Cons:

• Continued net losses and negative cash flow until commercial revenue.
• Going-concern note highlights the need for additional funding beyond existing liquidity.
• Execution risk in pivotal trials and market adoption.

7. Conclusion & Outlook

HeartBeam’s Q1 2025 results reflect significant progress in product development and regulatory milestones, balanced against increased investment in R&D and precommercial activities. The company’s liquidity position of $82 million supports operations into the second half of 2025, but additional financing will likely be required to scale commercialization. Key upcoming catalysts include FDA clearance of the 12-lead ECG synthesis software, expansion of the early access program, and strategic collaborations to enhance automated arrhythmia interpretation.

In Q1 2025 (total operating expense $5.504M):

• Employee-related expense: $3.039M (55.2%)
• R&D (ex-employee): $1.433M (26.0%)
• General & Admin (ex-employee): $1.032M (18.8%)

HeartBeam is on a growth trajectory driven by regulatory clearances and product validation. The company’s financial health is supported by a strong cash runway from its recent equity offering, but it remains in a pre-revenue phase with ongoing losses. Future opportunities include commercial launch post-FDA clearance of software, expansion of early access programs, and leveraging strategic partnerships in AI-driven ECG interpretation. Key challenges are achieving positive cash flow, managing dilution from potential future financings, and navigating competitive pressures in the cardiac monitoring market.