HeartBeam Reports Fourth Quarter and Full Year 2022 Financial Results

Acquired Assets from LIVMOR, Extending Reach in Remote Monitoring and Detection with an Existing Cutting Edge FDA-Cleared Product, Halo+™ Atrial Fibrillation Detection System

Partnered with Evolve Manufacturing to Build HeartBeam AIMIGo 12-Lead 3D Vector Electrocardiogram Device

Received European Patent for HeartBeam AIMIGo Technology

Initial FDA Submission of HeartBeam AIMIGo™, the Telehealth Solution, Projected for Q2 2023

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 fourth quarter and full year ended December 31, 2022.

Fourth Quarter and Subsequent 2023 Operational Highlights

Strategic acquisition (the “Acquisition”) of substantially all assets from LIVMOR, a digital health solutions company providing a patient-engaging remote monitoring system of critical physiological biomarkers, including FDA-cleared Halo+™ Atrial Fibrillation Detection System and physician-prescribed Integrated Patient Care Platform deployed within the Dallas, TX VA Healthcare System

Acquisition includes 3 issued United States patents, LIVMOR’s business contracts and relationships as well as all Samsung watch and tablet inventory

Partnered with Evolve Manufacturing to build HeartBeam AIMIGo 12-Lead 3D vector electrocardiogram device, positioning HeartBeam AIMIGo for early market testing in Q4 2023 after anticipated FDA clearance

Granted European patent for signal transformation from vector electrocardiogram to 12-Lead electrocardiogram, offering protection for HeartBeam’s flagship technology in multiple countries in Europe

Received new patent for 12-Lead electrocardiogram smartwatch-based monitor intended for detection of heart attacks and complex cardiac arrhythmias

Appointed senior medical technology executive Robert Eno as President to enhance HeartBeam’s strategic operations and capabilities

Announced Robert Eno will assume the duties and responsibilities of Executive Vice President and Chief Business Officer Jon Hunt, Ph.D., who stepped down from his position and transitioned to the role of strategic advisor and consultant

Appointed Peter J. Fitzgerald, MD, PhD, a renowned Stanford cardiologist with deep clinical, research, and industry expertise, as Chief Medical Officer

Management Commentary

“In our first year as a public company, 2022 was focused on advancing our product launch timeline for the HeartBeam AIMIGo 12-Lead 3D vector electrocardiogram device and HeartBeam AIMI™ platform,” said Branislav Vajdic, PhD, Chief Executive Officer and Founder of HeartBeam. “Throughout the fourth quarter and into 2023, our movement toward production and commercialization of our products was underscored by a series of milestones including new acquisitions, partnerships, IP protection, and a strengthened management team. We continue to have strong conviction in our HeartBeam AIMI software platform technology and HeartBeam AIMIGo, and their potential to offer more accurate heart attack detection and expedite treatment. As we look toward FDA clearance for HeartBeam AIMI, we are also making significant progress with our core HeartBeam AIMIGo product as we prepare for FDA submission early this year.

“Most recently we announced the acquisition of LIVMOR’s intellectual property and technology, including 3 US patents and the Halo+™ Atrial Fibrillation (AF) Detection System. The Acquisition extends our reach in remote monitoring and detection with full ownership of an existing cutting-edge FDA-cleared product. The Halo+™ AF Detection System is the world’s first FDA-cleared prescription wearable for continuous cardiac rhythm monitoring. The Halo system provides continuous monitoring of pulse rhythms for the detection of AF on-demand during the day and automatically overnight. The Acquisition is a natural fit and extension of our successful partnership with LIVMOR and our complementary goals to dramatically improve patient outcomes and to significantly reduce healthcare system costs.

“In the fourth quarter we partnered with Evolve Manufacturing Technologies, a contract medical device manufacturing company, to build the credit card-sized HeartBeam AIMIGo 3D vector electrocardiogram recording device that provides a 12 lead ECG readout for remote heart attack detection. Evolve has deep medical device manufacturing expertise and a strong reputation in the industry for delivering consistent product quality and customer care rarely found in medical contract manufacturers. We can now leverage Evolve’s manufacturing and packaging expertise to support commercialization of the HeartBeam AIMIGo device following expected FDA Clearance.

“The recent issuance of two patents provided further intellectual property protection for our technologies. An initial European patent strengthens IP for the HeartBeam AIMIGo technology offering 12-lead ECG capability, as we expand our product applications to reach a variety of regions in the global marketplace. In the fourth quarter, we also received a U.S. patent for a 12-lead electrocardiogram smartwatch-based monitor intended for detection of heart attacks and complex cardiac arrhythmias. The breakthrough inventions protected by this patent enable our proprietary 3D VECG technology to be built into a smartwatch, offering 12-lead ECG capability enabling heart attack and complex arrhythmia detection in a wearable device. We believe this patent may prove to be one of the most valuable, and we continue to expand on our granted and pending core patents for remote heart attack detection.

“Operationally, we recently welcomed Robert Eno to the newly created position of President. Rob is a passionate and visionary senior executive with over 28 years of experience creating go-to-market strategies for multiple breakthrough products. He plays a key role in our strategic direction, commercialization efforts, and day-to-day operations. We also welcomed Peter J. Fitzgerald, MD, PhD, as Chief Medical Officer. One of the world’s preeminent opinion leaders in cardiology and digital health, Peter is now playing a major role in defining best paths to adoption, clinical strategies, and partnerships to advance our products in the market.

“Looking ahead into 2023, our next milestones on the commercialization path include FDA submission for the HeartBeam AIMIGo 3D VECG first-generation product and FDA clearance for HeartBeam AIMI, both expected in the near future. We have continued to engage in positive discussions with strategic institutions, including academic centers, regional healthcare systems, and regional community hospital systems. We also plan to focus in 2023 and 2024 on the expansion of our core technology features, the 3D VECG data and clinical studies that we believe will establish our platform as the standard of care for ambulatory-based cardiology and taking advantage of the comprehensiveness of our technology. We look forward to providing updates on our progress in the months ahead,” concluded Dr. Vajdic.

Key Anticipated Milestones

HeartBeam AIMI

FDA Submission Completed – Q3 2022

FDA Clearance – Q2 2023

Limited Market Release – Q3 2023

HeartBeam AIMIGo

FDA Submission V1 – Q2 2023

FDA Clearance V1 – Q3 2023

Limited Market Release V1 – Q4 2023

FDA Submission V2 – Q4 2023

FDA Clearance V2 – Q1 2024

Limited Market Release V2 – Q2 2024

Fourth Quarter & Full Year 2022 Financial Results

Research and development expenses for the fourth quarter of 2022 were $1.6 million, compared to $96,000 for the fourth quarter of 2021. For the year ended December 31, 2022, Research and development expenses increased to $5.7 million compared to $255,000 the prior year.

General and administrative expenses for the fourth quarter of 2022 were $2.1 million compared to $1.2 million for the fourth quarter of 2021. For the year ended December 31, 2022, G&A expense increased to $7.4 million compared to $2.0 million in the same period of 2021.

Net loss for the fourth quarter of 2022 was $3.7 million, compared to a net loss of $2.1 million for the fourth quarter of 2021, and $13.0 million for the full year 2022 compared to $4.4 million in the year ago period.

Cash totaled $3.6 million as of December 31, 2022, compared to $13.2 million as of December 31, 2021.

Fourth Quarter & Full Year 2022 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, March 16, 2023

Time:

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

Dial-in:

1-877-704-4453

International Dial-in:

1-201-389-0920

Conference Code:

13735881

Webcast:

https://viavid.webcasts.com/starthere.jsp?ei=1595261&tp_key=c85125272c

A telephone replay will be available approximately two hours after the call and will run through June 16, 2023, by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 13735881. 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

(In thousands, except share data)

 

 

December 31,

 

2022

 

2021

Assets

 

 

 

Current Assets:

 

 

 

Cash and cash equivalents

$

3,594

 

 

$

13,192

 

Prepaid expenses and other assets

 

445

 

 

 

806

 

Total Assets

$

4,039

 

 

$

13,998

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Current Liabilities:

 

 

 

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

 

1,665

 

 

 

588

 

Total Liabilities

 

1,665

 

 

 

588

 

 

 

 

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

Preferred Stock – $0.0001 par value; 10,000,000 shares authorized; 0 shares outstanding at December 31, 2022 and 2021

 

 

 

 

 

Common stock – $0.0001 par value; 100,000,000 shares authorized; 8,009,743 and 7,809,912 shares issued and outstanding at December 31, 2022 and 2021

 

1

 

 

 

1

 

Additional paid in capital

 

24,559

 

 

 

22,633

 

Accumulated deficit

 

(22,186

)

 

 

(9,224

)

Total Stockholders’ Equity

$

2,374

 

 

$

13,410

 

 

 

 

 

Total Liabilities and Stockholders’ Equity

$

4,039

 

 

$

13,998

 

HEARTBEAM, INC.

Statements of Operations

(In thousands, except share and per share data)

 

 

 

December 31,

 

 

2022

 

2021

Operating Expenses:

 

 

 

 

General and administrative

 

$

7,354

 

 

$

2,030

 

Research and development

 

 

5,677

 

 

 

255

 

Total operating expenses

 

 

13,031

 

 

 

2,285

 

 

 

 

 

 

Loss from operations

 

 

(13,031

)

 

 

(2,285

)

 

 

 

 

 

Other Income (Expense)

 

 

 

 

Interest income (expense)

 

 

66

 

 

 

(2,165

)

Other income

 

 

3

 

 

 

22

 

Total other income (expense)

 

 

69

 

 

 

(2,143

)

 

 

 

 

 

Loss before provision for income taxes

 

 

(12,962

)

 

 

(4,428

)

 

 

 

 

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

$

(12,962

)

 

$

(4,428

)

 

 

 

 

 

Net loss per share, basic and diluted

 

$

(1.59

)

 

$

(1.03

)

 

 

 

 

 

Weighted average common shares outstanding, basic and diluted

 

 

8,168,516

 

 

 

4,284,714

 

HEARTBEAM, INC.

Statements of Cash Flows

(In thousands)

 

 

December 31,

 

2022

 

2021

Cash Flows From Operating Activities

 

 

 

Net loss

$

(12,962

)

 

$

(4,428

)

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

 

 

 

Accretion expense, convertible notes

 

 

 

 

1,886

 

Non-cash interest expense

 

 

 

 

278

 

Stock-based compensation expense

 

1,120

 

 

 

192

 

PPP loan forgiveness

 

 

 

 

(22

)

Changes in operating assets and liabilities:

 

 

 

Prepaid expenses and other current assets

 

361

 

 

 

(779

)

Accounts payable, accrued expenses and other current liabilities

 

1,533

 

 

 

(357

)

Net cash used in operating activities

 

(9,948

)

 

 

(3,230

)

 

 

 

 

Cash Flows From Financing Activities

 

 

 

Proceeds from sale of equity

 

348

 

 

 

14,713

 

Proceeds from exercise of stock options

 

2

 

 

 

 

Proceeds from issuance of convertible notes

 

 

 

 

1,715

 

Repayment and interest paid on short-term loans

 

 

 

 

(30

)

Net cash provided by financing activities

 

350

 

 

 

16,398

 

 

 

 

 

Net (decrease) increase in cash

 

(9,598

)

 

 

13,168

 

 

 

 

 

Cash and Cash Equivalents – Beginning of the year

 

13,192

 

 

 

24

 

 

 

 

 

Cash and Cash Equivalents – End of the year

$

3,594

 

 

$

13,192

 

 

 

 

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

Taxes paid

$

 

 

$

 

Interest paid

 

 

 

 

 

 

 

 

 

Supplemental Disclosures of Non-cash Flow Information:

 

 

 

Issuance of common stock and warrants to settle accrued expenses

 

456

 

 

 

 

Conversion of debt to equity

 

 

 

 

6,288

 

Debt discount

 

 

 

 

1,886

 

Common stock and awards accrued but not issued

 

 

 

 

456

 

 

Contacts

Investor Relations Contact:
Chris Tyson

Executive Vice President

MZ North America

Direct: 949-491-8235

[email protected]
www.mzgroup.us

Media Contact:
[email protected]

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