HeartBeam Reports First Quarter 2023 Financial Results

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Closed $26.5 Million with a Public Offering and Registered Direct Offering to Enable Company to Execute on Upcoming Clinical, Regulatory and Commercial Milestones and Extend Cash Runway into Late 2024

Strategic Focus on Becoming the Global Leader in Ambulatory Vectorcardiography, the Highest Resolution ECG Monitoring Platform

Management to Host Webcast and Conference Call Today At 4:30 p.m. ET

SANTA CLARA, Calif.--(BUSINESS WIRE)-- HeartBeam, Inc. (NASDAQ: BEAT), a cardiac technology company that has developed the first and only 3D vector electrocardiogram (VECG) platform for heart attack detection anytime, anywhere, has reported its financial and operational results for the first quarter ended March 31, 2023.

First Quarter and Subsequent 2023 Operational Highlights

  • Closed a secondary offering of $25.0 million and Registered Direct Offering of $1.5 million in May 2023 for gross proceeds totaling $26.5 million to enable the Company to execute on upcoming clinical, regulatory and commercial milestones, and extend cash runway into late 2024
  • Adjusted strategic focus to enable timely delivery of HeartBeam’s breakthrough ambulatory VECG products, the company’s key future value drivers
  • Completed a strategic acquisition of substantially all assets from LIVMOR, a digital health solutions company providing a patient-engaging remote monitoring system including the FDA-cleared Halo+™ Atrial Fibrillation Detection System
  • Appointed senior medical technology executive Robert Eno as President

Management Commentary

“In the first quarter of 2023 we continued to position the Company for the expected clearances and commercialization of the HeartBeam AIMIGo 12-Lead 3D vector electrocardiogram device,” said Branislav Vajdic, PhD, Chief Executive Officer and Founder of HeartBeam.

“We recently closed $26.5 million in common stock-only financings to fund operations into late 2024. Proceeds will be used to fund development and regulatory work for the HeartBeam AIMIGo VECG device and to ready the product for initial commercialization during 2024.

“Our strategic focus is to enable timely delivery of our ambulatory VECG products, our key future value drivers, by first obtaining an FDA 510(k) clearance for the HeartBeam AIMIGo VECG device. We expect to submit this application in the coming days. This will be followed by a second FDA application on the system’s ability to synthesize a 12-lead electrocardiogram (ECG). We currently estimate that we will submit this second application to the FDA in late 2023 and pursue initial commercialization in 2024.

“During the first quarter of 2023, we announced the acquisition of LIVMOR’s intellectual property and technology, including LIVMOR’s 3 US patents and the Halo+™ Atrial Fibrillation Detection System. This extends our reach into remote monitoring, which we believe will be important after we have a commercial telehealth version of HeartBeam AIMIGo on the market, expected in 2024.

“We are building on our global intellectual property portfolio, and plan to partner with PatentVest, a unified technology development and patent law firm focused on creating IP leadership for development stage technology companies, with the goal of creating clear leadership in the area of ambulatory VECG cardiac detection.

“Operationally, we announced the appointment of Robert Eno to the newly created position of President. Robert has extensive experience bringing innovative medical technology products to market and has already become invaluable as we move forward with plans to broaden our product portfolio pipeline. We are also adding world leading Key Opinion Leaders to our Medical Advisory Board to help guide our clinical and regulatory development. These Advisory Board members will be announced in the near future.

“We look forward to providing updates on our progress in the months ahead,” concluded Dr. Vajdic.

First Quarter 2023 Financial Results

Research and development expenses for the first quarter of 2023 were $1.7 million, compared to $0.7 million for the first quarter of 2022.

General and administrative expenses for the first quarter of 2023 were $2.5 million compared to $1.4 million for the first quarter of 2022.

Net loss for the first quarter of 2023 was $4.1 million, compared to a net loss of $2.1 million for the first quarter of 2022.

Cash totaled approximately $990,000 as of March 31, 2023. In May 2023, the Company closed Common Stock financings with net proceeds of approximately $24.6 million.

First Quarter 2023 Results Conference Call

HeartBeam CEO and Founder Branislav Vajdic, PhD, President Robert Eno, and CFO Richard Brounstein will host the conference call, followed by a question-and-answer period. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here.

To access the call, please use the following information:

Date:

Thursday May 11, 2023

Time:

4:30 p.m. Eastern time (1:30 p.m. Pacific time)

Dial-in:

1-844-826-3035

International Dial-in:

1-412-317-5195

Conference Code:

10178249

Webcast:

https://viavid.webcasts.com/starthere.jsp?ei=1611445&tp_key=13a316a5f0

A telephone replay will be available approximately two hours after the call and will run through August 11, 2023, by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 10178249. The replay can also be viewed through the webcast link above and the presentation utilized during the call will be available in the company’s investor relations section here.

About HeartBeam, Inc.

HeartBeam, Inc. (NASDAQ: BEAT) is a cardiac technology company that has developed the first and only 3D-vector ECG platform for heart attack detection anytime, anywhere. By applying a suite of proprietary algorithms to simplify vector electrocardiography (VECG), the HeartBeam platform enables patients and their clinicians to determine if symptoms are due to a heart attack, quickly and easily, so care can be expedited, if required. HeartBeam has two patented products in development. HeartBeam AIMI™ is software for acute care settings that provides a 3D comparison of baseline and symptomatic 12-lead ECG to more accurately identify a heart attack. HeartBeam AIMIGo™ is the first and only credit card-sized 12-lead output ECG device coupled with a smart phone app and cloud-based diagnostic software system to facilitate remote heart attack detection. HeartBeam AIMI and AIMIGo have not yet been cleared by the US Food and Drug Administration (FDA) for marketing in the USA or other geographies. For more information, visit HeartBeam.com.

Forward-Looking Statements

All statements in this release that are not based on historical fact are "forward-looking statements." While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our in our Forms 10-K, 10-Q and other reports filed with the SEC and available at www.sec.gov. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

HEARTBEAM, INC.

Balance Sheets (Unaudited)

(In thousands, except share data)

 

 

March 31,
2023

 

December 31,
2022

Assets

 

 

 

Current Assets:

 

 

 

Cash and cash equivalents

$

990

 

 

$

3,594

 

Prepaid expenses and other assets

 

471

 

 

 

445

 

Total current assets

$

1,461

 

 

$

4,039

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Current Liabilities:

 

 

 

Accounts payable and accrued expenses (includes related party $1 and $2 respectively)

 

2,320

 

 

 

1,665

 

Total Liabilities

 

2,320

 

 

 

1,665

 

 

 

 

 

Stockholders’ Equity (Deficit)

 

 

 

Preferred stock - $0.0001 par value; 10,000,000 authorized; 0 shares outstanding at March 31, 2023 and December 31, 2022

 

—

 

 

 

—

 

Common stock - $0.0001 par value; 100,000,000 shares authorized; 8,227,074 and 8,009,743 shares issued and outstanding at March 31, 2023 and December 31, 2022

 

1

 

 

 

1

 

Additional paid in capital

 

25,462

 

 

 

24,559

 

Accumulated deficit

 

(26,322

)

 

 

(22,186

)

Total Stockholders’ Equity (Deficit)

$

(859

)

 

$

2,374

 

 

 

 

 

Total Liabilities and Stockholders’ Equity and (Deficit)

$

1,461

 

 

$

4,039

 

HEARTBEAM, INC.

Statements of Operations (Unaudited)

(In thousands, except share and per share data)

 

 

Three months ended March 31,

 

 

2023

 

 

 

2022

 

Operating Expenses:

 

 

 

General and administrative

$

2,475

 

 

$

1,414

 

Research and development

 

1,681

 

 

 

734

 

Total operating expenses

 

4,156

 

 

 

2,148

 

 

 

 

 

Loss from operations

 

(4,156

)

 

 

(2,148

)

 

 

 

 

Other Income

 

 

 

Interest income

 

20

 

 

 

2

 

Total other income

 

20

 

 

 

2

 

 

 

 

 

Loss before provision for income taxes

$

(4,136

)

 

$

(2,146

)

 

 

 

 

Income tax provision

$

—

 

 

$

—

 

 

 

 

 

Net Loss

$

(4,136

)

 

$

(2,146

)

 

 

 

 

Net loss per share, basic and diluted

$

(0.50

)

 

$

(0.27

)

 

 

 

 

Weighted average common shares outstanding, basic and diluted

 

8,222,416

 

 

 

8,081,804

 

HEARTBEAM, INC.

Statements of Cash Flows (Unaudited)

(In thousands)

 

 

Three months ended March 31,

 

 

2023

 

 

 

2022

 

Cash Flows From Operating Activities

 

 

 

Net loss

$

(4,136

)

 

$

(2,146

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

Stock-based compensation expense

 

393

 

 

 

159

 

Changes in operating assets and liabilities:

 

 

 

Prepaid expenses and other current assets

 

(26

)

 

 

(734

)

Accounts payable and accrued expenses

 

655

 

 

 

382

 

Net cash used in operating activities

 

(3,114

)

 

 

(2,339

)

 

 

 

 

Cash Flows From Financing Activities

 

 

 

Proceeds from sale of equity, net of issuance costs

 

494

 

 

 

348

 

Proceeds from exercise of warrants

 

16

 

 

 

—

 

Net cash provided by financing activities

 

510

 

 

 

348

 

 

 

 

 

Net decrease in cash

 

(2,604

)

 

 

(1,991

)

 

 

 

 

Cash and Cash Equivalents – Beginning of period

 

3,594

 

 

 

13,192

 

 

 

 

 

Cash and Cash Equivalents – Ending of period

$

990

 

 

$

11,201

 

 

 

 

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

Taxes paid

$

—

 

 

$

—

 

 

 

 

 

Supplemental Disclosures of Non-cash Financing Activities:

 

 

 

Issuance of common stock and warrants to settle accrued expenses

$

—

 

 

$

456

 

 

Investor Relations Contact:
Chris Tyson
Executive Vice President
MZ North America
Direct: 949-491-8235
BEAT@mzgroup.us
www.mzgroup.us

Media Contact:
media@heartbeam.com

Source: HeartBeam, Inc.

Released May 11, 2023