Closes Successful $16.5 Million IPO and
Commences Trading on the Nasdaq
HeartBeam, Inc. (NASDAQ: BEAT), a developmental stage
digital healthcare company with a proprietary ECG telemedicine
technology to bring new capabilities to cardiovascular disease, has
reported its financial and operational results for the third
quarter and nine months ended September 30, 2021.
- On November 15, 2021, successfully completed its initial public
offering (IPO), selling 2,750,000 units (the “Units”) to the public
at $6.00 per Unit, comprised of one share of common stock and one
five-year warrant to acquire a share of common stock with an
exercise price of $6.00 per share.
- Net proceeds raised in HeartBeam’s IPO were $14.9 million,
after deducting underwriting discounts and commissions.
- The Company’s Units separated into common stock and warrants
upon issuance.
- The Company’s common stock and warrants commenced trading on
Nasdaq Capital Market under the ticker symbols “BEAT” and “BEATW”,
respectively.
- Presented ED-MID diagnostics software research data at the 43rd
Annual International Conference of the IEEE Engineering in Medicine
and Biology Society in November 2021.
Management Commentary
“The third quarter of 2021 was a significant milestone for our
company with our transition to a public company and the addition of
new capital to accelerate our commercialization path,” said
Branislav Vajdic, PhD, Chief Executive Officer and Founder of
HeartBeam. “We believe our Nasdaq listing will help elevate the
Company's public profile, expand our shareholder base, improve
liquidity and enhance shareholder value. The net proceeds to
HeartBeam from the offering amounted to $14.9 million, bringing our
September 30, 2021 pro-forma cash balance to approximately $15.7
million.”
Dr. Vajdic continued, “Development of our FDA-ready products for
our Telehealth and ER Software Tool solutions are moving ahead on a
well-defined regulatory pathway. Our telemedicine solution can be
used by patients at home to help their physicians assess whether
chest pain is the result of a heart attack (MI) and is supported by
robust clinical data and a strong IP portfolio. We believe our
breakthrough platform technology has the ability to become the
standard of care in emergency medicine and cardiology, serving a
$10 billion addressable and underserved market for MI detection. We
expect to provide additional announcements on our product
development timeline in the coming months.”
Rich Ferrari, HeartBeam’s Executive Chairman, emphasized, “As a
fully reporting public company, and from a best practices
perspective, we will commence a cadence of quarterly and year-end
financial results conference calls for analysts and investors. We
look forward to this additional communication as we work to bring
long-term value to our shareholders.”
Rick Brounstein, Chief Financial Officer of HeartBeam, added,
“Combined with our successful IPO and the planned 2022 release of
our ED-MID product, we expect that current cash and cash
equivalents will be sufficient to provide current operations into
2023. We believe we now have sufficient cash to meet our
development, regulatory and commercialization milestones without
the need to raise additional funds.”
Anticipated Milestones
- ER Software Tool (ED-MID)
- Development of FDA-Ready Product - Q2 2022
- FDA Study Completed - Q2 2022
- FDA Submission - Q2 2022
- FDA Clearance - Q3 2022
- Limited Market Release - Q3 2022
- Product Launch - Q4 2022
- Telehealth
- Development of FDA-Ready Product - Q3 2022
- FDA Study Completed - Q3 2022
- FDA Submission – Q4 2022
- FDA Clearance - Q1 2023
- Limited Market Release - Q1 2023
- Product Launch - Q2 2023
Third Quarter 2021 Financial Results
Research and development expenses for the third quarter of 2021
were $105,000, compared to $57,000 for the third quarter of 2020.
For the nine months ended September 30, 2021, Research and
development expenses increased to $159,000 from $86,000 the prior
year.
General and administrative expenses for the third quarter of
2021 were $341,000, compared to $215,000 for the third quarter of
2020. During the nine months ended September 30, 2021, G&A
expense increased to $785,000 compared to $441,000 in the same
period of 2020.
Net loss for the third quarter of 2021 was $1.2 million,
compared to a net loss of $335,000 for the third quarter of 2020,
and $2.3 million for the nine months of 2021 compared to $737,000
in the year ago period.
Cash and cash equivalents totaled $795,000 as of September 30,
2021, which does not include net proceeds from its IPO, which was
completed in November 2021.
About HeartBeam, Inc.
HeartBeam, Inc. (NASDAQ: BEAT) is a development stage digital
healthcare company with proprietary ECG telemedicine technology
that will redefine the way high risk cardiovascular patients are
diagnosed in an ambulatory setting at any time and any place. Its
breakthrough solution employs a reusable, credit card sized, 3D
vector ECG recording device and cloud-based software capable of
assisting a physician in diagnosing a wide range of cardiovascular
disease. HeartBeam is initially focusing on a huge unmet need of
helping diagnose heart attacks in patients outside of a medical
institution. No single lead ECG technology can offer this value to
patients and their physicians. This underserved market is several
times larger than the cardiac arrhythmia detection market based on
the prevalence of patients with coronary artery disease at high
risk of heart attack. For more information visit
www.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 recently filed Registration Statement on Form S-1, which can
be found on the SEC’s website 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)
September 30,
2021
December 31,
2020
Assets
Current Assets:
Cash
$
795
$
24
Prepaid expenses and other assets
166
27
Total Assets
$
961
$
51
Liabilities and Stockholders’
Equity
Current Liabilities:
Accounts payable and accrued expenses
(includes related party $7 and $15, respectively)
699
489
Convertible notes
5,419
4,295
Other - current liabilities
30
52
Total current liabilities
6,148
4,836
Total Liabilities
$
6,148
$
4,836
Commitments and contingencies
Stockholders’ Deficit
Common stock - $0.0001 par value;
20,000,000 shares authorized; 3,555,311 and 3,527,850 shares issued
and outstanding at September 30, 2021 and December 31, 2020
—
—
Additional paid in capital
1,952
11
Accumulated deficit
(7,139
)
(4,796
)
Total Stockholders’ Deficit
$
(5,187
)
$
(4,785
)
Total Liabilities and Stockholders’
Deficit
$
961
$
51
HEARTBEAM, INC.
Statements of Operations
(Unaudited)
(In thousands, except share
and per share data)
Three Months ended September
30,
Nine Months ended September
30,
2021
2020
2021
2020
Operating Expenses:
Selling, general and administrative
$
341
$
215
$
785
$
441
Research and development
105
57
159
86
Total operating expenses
446
272
944
527
Loss from operations
(446
)
(272
)
(944
)
(527
)
Interest expense
(742
)
(63
)
(1,421
)
(210
)
Other Income
—
—
22
—
Loss before provision for income taxes
(1,188
)
(335
)
(2,343
)
(737
)
Income tax provision
—
—
—
—
Net Loss
$
(1,188
)
$
(335
)
$
(2,343
)
$
(737
)
Net loss per share, basic and diluted
$
(0.32
)
$
(0.09
)
$
(0.63
)
$
(0.20
)
Weighted average common shares
outstanding, basic and diluted
3,720,880
3,654,395
3,706,001
3,641,534
HEARTBEAM, INC.
Statements of Cash Flows
(Unaudited)
(In thousands)
Nine Months ended September
30,
2021
2020
Cash Flows From Operating
Activities
Net loss
$
(2,343
)
$
(737
)
Adjustments to reconcile net loss to net
cash used in operating activities
Accretion expense, convertible notes
1,187
—
Non-cash interest expense
233
152
Stock-based compensation expense
85
4
Amortization of debt issuance cost
—
28
PPP loan forgiveness
(22
)
—
Changes in operating assets and
liabilities:
Prepaid expenses and other current
assets
(139
)
—
Accounts payable and accrued expenses
210
148
Net cash used in operating
activities
(789
)
(405
)
Cash Flows From Financing
Activities
Proceeds from issuance of convertible
notes, net of financing fees
1,560
630
Proceeds from PPP & EIDL Loans
—
22
Repayment and interest paid on short-term
loans
—
(16
)
Net cash provided by financing
activities
1,560
636
Net increase (decrease) in cash
771
231
Cash – Beginning
24
5
Cash – Ending
$
795
$
236
Supplemental Disclosures of Cash Flow
Information:
Taxes paid
$
—
$
—
Interest paid
—
1
Supplemental Disclosures of Non-cash
Flow Information:
Conversion of short-term notes to
convertible notes
$
—
$
22
Debt Discount
$
1,856
$
—
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version on businesswire.com: https://www.businesswire.com/news/home/20211216006086/en/
Chris Tyson Executive Vice President MZ North America Direct:
949-491-8235 BEAT@mzgroup.us www.mzgroup.us
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