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Helius Medical Technologies (HSDT)
NASDAQ:HSDT
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Helius Medical Technologies
(NASDAQ:HSDT)
35Underperform
Positive Factors
Negative Factors
Capital Raising
There is substantial concern about the company's ability to raise capital to fund ongoing operations, and HSDT is expected to need to raise capital before the end of 1Q25.
Reimbursement Decision
Unfavorable reimbursement decision from CMS could impact the company’s ability to drive profitability and limits its pricing power in broader market adoption.
Revenue Projections
HSDT reported lower-than-expected revenue due to the conclusion of its discounted cash pay offering for the PoNS device and weaker-than-expected demand in Canada.
Helius Medical Technologies (HSDT) vs. S&P 500 (SPY)
Market Cap
$2.36M
Dividend YieldN/A
Average Volume (3M)205.06K
Price to Earnings (P/E)―
Beta (1Y)0.52
Revenue Growth-36.62%
EPS Growth71.25%
CountryUS
Employees22
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-6.18
Shares Outstanding5,674,222
10 Day Avg. Volume220,270
30 Day Avg. Volume205,058
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.09
Price to Cash Flow (P/CF)-0.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Helius Medical Technologies Business Overview & Revenue Model
Company DescriptionHelius Medical Technologies, Inc. (HSDT) is a neurotechnology company focused on developing and commercializing innovative products that enhance the brain's ability to heal and adapt. Operating primarily in the healthcare sector, the company's flagship product is the Portable Neuromodulation Stimulator (PoNS). This non-invasive device is designed to aid in the treatment of neurological symptoms associated with chronic balance deficit due to mild-to-moderate traumatic brain injury (mmTBI) and walking impairment in multiple sclerosis (MS). Helius Medical Technologies is headquartered in the United States and aims to address unmet medical needs through cutting-edge technological solutions.
How the Company Makes MoneyHelius Medical Technologies generates revenue primarily through the commercialization of its PoNS device. The company sells the device directly to clinics, healthcare providers, and patients, leveraging its approval and clearances in various regions, including the United States and Canada. Revenue streams also include partnerships and collaborations with rehabilitation centers and healthcare organizations that incorporate the PoNS device into their treatment protocols. Additionally, Helius may derive income from licensing agreements, where it allows other companies to utilize its proprietary technology. The company's earnings are significantly influenced by its regulatory approvals, market adoption rates, and the expansion of its distribution network.
Helius Medical Technologies Financial Statement Overview
Summary
Helius Medical Technologies is facing substantial financial challenges with declining revenues, negative profitability margins, and reliance on external financing to manage cash flow deficits. The balance sheet remains relatively stable with low debt levels, but overall financial sustainability is concerning.Income Statement
Helius Medical Technologies has shown declining revenue with a significant drop from the previous year, indicating challenges in sustaining sales. Gross and net profit margins are negative, reflecting poor cost control and significant losses. The company's EBIT and EBITDA margins are also negative, highlighting ongoing operational inefficiencies.25
Negative
Balance Sheet
The company's balance sheet shows a moderate debt-to-equity ratio due to low total debt levels, which is a positive aspect. However, the return on equity is negative due to consistent net losses, and the equity ratio indicates moderate reliance on equity financing. The overall financial health is weak with declining asset base and equity.45
Neutral
Cash Flow
The operating cash flow is consistently negative, indicating cash burn in operations, while free cash flow remains negative, reflecting challenges in generating cash after capital expenditures. Financing activities have been significant, suggesting reliance on external funding to sustain operations.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 502.00K | 644.00K | 787.00K | 522.00K | 661.00K | 1.50M | Gross Profit |
| -31.00K | 61.00K | 324.00K | 224.00K | 273.00K | 650.00K | EBIT |
| -13.00M | -12.43M | -14.76M | -18.14M | -14.39M | -24.00M | EBITDA |
| -12.95M | -12.11M | -14.50M | -17.82M | -13.90M | -23.93M | Net Income Common Stockholders |
| -8.86M | -8.85M | -12.56M | -18.12M | -13.94M | 4.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 25.58M | 5.18M | 14.55M | 11.01M | 3.33M | 5.46M | Total Assets |
| 27.83M | 7.69M | 17.29M | 14.10M | 6.55M | 10.35M | Total Debt |
| 0.00 | 57.00K | 110.00K | 3.00K | 91.00K | 637.00K | Net Debt |
| -25.58M | -5.13M | -14.44M | -11.00M | -3.24M | -4.82M | Total Liabilities |
| 17.97M | 5.34M | 9.14M | 2.85M | 2.68M | 4.51M | Stockholders Equity |
| 9.85M | 2.35M | 8.15M | 11.26M | 3.87M | 5.83M |
| Cash Flow | Free Cash Flow | ||||
| -10.70M | -10.45M | -14.33M | -13.44M | -11.81M | -21.35M | Operating Cash Flow |
| -10.70M | -10.42M | -14.31M | -13.39M | -11.74M | -21.00M | Investing Cash Flow |
| -8.00K | -29.00K | -11.00K | -56.00K | -9.00K | -769.00K | Financing Cash Flow |
| 7.58M | 1.08M | 17.87M | 21.13M | 9.64M | 1.65M |
Helius Medical Technologies Technical Analysis
Negative
0.42
Price Trends
0.62
Negative
0.59
Negative
0.72
Negative
Market Momentum
-0.05
Positive
36.33
Neutral
23.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSDT, the sentiment is Negative. The current price of 0.42 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.62, and below the 200-day MA of 0.72, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.33 is Neutral, neither overbought nor oversold. The STOCH value of 23.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HSDT.
Helius Medical Technologies Risk Analysis
Helius Medical Technologies disclosed 45 risk factors in its most recent earnings report. Helius Medical Technologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Helius Medical Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $290.51M | ― | -55.25% | ― | 22.01% | 10.02% | |
57 Neutral | $1.43B | ― | -291.71% | ― | 26.81% | 26.47% | |
55 Neutral | $8.96M | ― | -42.78% | ― | -41.41% | 23.95% | |
51 Neutral | $876.47M | ― | -24.20% | ― | 10.40% | 78.94% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% | |
42 Neutral | $69.32M | ― | 78.44% | ― | ― | ― | |
35 Underperform | $2.36M | ― | -259.79% | ― | -36.62% | 71.25% |
* Healthcare Sector Average
Performance Comparison
HSDT
Helius Medical Technologies
0.42
-5.41
-92.80%
ATEC
Alphatec Holdings
9.56
-4.23
-30.67%
NURO
Neurometrix
4.37
0.45
11.48%
BYSI
Beyondspring
1.73
-1.28
-42.52%
LUNG
Pulmonx
7.32
-1.46
-16.63%
BVS
Bioventus
10.07
4.78
90.36%
Helius Medical Technologies Earnings Call Summary
Earnings Call Date: Nov 13, 2024 | % Change Since: -23.64% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented several significant achievements, particularly in terms of partnerships, insurance reimbursements, and progress toward stroke authorization. However, it also highlighted a decrease in revenue year-over-year and a flat operating loss, suggesting financial challenges. Despite these lowlights, the positive developments in market access and potential revenue growth indicate a cautiously optimistic outlook.Highlights
Partnership with Lovell Government Services
In April, Helius Medical partnered with Lovell Government Services to make PoNS Therapy accessible to MS patients treated at the VA and through other federal agencies, potentially benefiting 65,000 to 70,000 veterans in the U.S. living with MS.
Major Insurance Reimbursement
In May, Helius Medical received the first third-party reimbursement of $23,900 from a major insurance carrier for a PoNS device, marking a significant milestone in establishing market pricing.
Inclusion in Government Contracts
PoNS was approved for inclusion in the VA federal supply schedule and the General Services Administration Advantage contracts, as well as in Lovell's DAPA contract for the Department of Defense with established pricing.
Progress in Stroke Authorization
Significant progress was made towards stroke authorization in the U.S., with full enrollment in the registration program, aiming for FDA submission in 2025.
Revenue Increase Over Previous Quarter
Revenue for Q2 2024 was up 35% compared to Q1 2024 due to increased sales in both the U.S. and Canada.
Lowlights
Year-over-Year Revenue Decline
Total revenue for Q2 2024 was $182,000, a decrease of $74,000 compared to Q2 2023 due to the termination of the Patient Therapy Access Program and temporary cash pay pricing.
Flat Operating Loss
The operating loss for Q2 2024 was $3.2 million, the same as the prior year period, indicating no improvement in reducing losses.
Company Guidance
During the second quarter of 2024, Helius Medical Technologies made significant progress in expanding access to its PoNS Therapy, particularly for veterans with MS. Key accomplishments include partnering with Lovell Government Services, securing approvals for inclusion in VA and GSA contracts, with pricing set at $23,843.72 for the PoNS device and $7,344.97 for the mouthpiece. Additionally, the therapy received its first third-party reimbursement of $23,900. PoNS was also approved for the Department of Defense’s DAPA contract, with device pricing at $23,724.50 and the mouthpiece at $7,308.25. These milestones are critical as Helius seeks CMS reimbursement, with HCPCS codes already assigned and final rates expected to be published soon. The company is also advancing its stroke authorization initiative, with studies underway in the U.S. and Canada, aiming for FDA submission in 2025. Financially, the company reported $182,000 in revenue for Q2 2024, a decrease from the previous year, but saw a 35% increase from Q1 2024 due to rising sales in the U.S. and Canada. Operating losses remained steady at $3.2 million, with a net loss of $1.6 million in the quarter.Helius Medical Technologies Corporate Events
Private Placements and FinancingShareholder Meetings
Helius Medical Secures Funds Through Warrant Agreements
Neutral
Jan 24, 2025
On January 21, 2025, Helius Medical Technologies entered into agreements with warrant holders to exercise existing warrants at a reduced price of $0.751 per share, generating approximately $3.7 million in gross proceeds. In exchange, the company issued new warrants, contingent on stockholder approval, for additional shares, impacting its financial strategy and necessitating subsequent stockholder meetings to ensure compliance with Nasdaq rules.
M&A TransactionsBusiness Operations and Strategy
Helius Medical Explores Strategic Alternatives Amid Challenges
Negative
Nov 18, 2024
Helius Medical Technologies is actively pursuing strategic alternatives to enhance shareholder value amid challenges with CMS pricing determinations for its PoNS device. Having engaged B. Riley Securities as an advisor, the company is exploring options like mergers or sales, while also addressing reimbursement issues to better position its innovative neuromodulation therapy in the market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.