Helius Medical Technologies Reports Significant Revenue Decline and Increased Net Loss in Q1 2025

Helius Medical Technologies, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue falling to $49,000, down from $135,000 in the same period of 2024. The company's product sales, which primarily come from its PoNS device, decreased to $38,000 from $124,000 year-over-year. This decline is attributed to reduced unit volumes following the termination of a temporary cash pay pricing model in early 2024. The company recorded a net loss of $3.8 million for the quarter, compared to a loss of $2.5 million in the prior year, reflecting increased operating expenses and a gross loss of $72,000.

In terms of operational metrics, Helius Medical Technologies reported a total of 7,920,928 shares of Class A common stock outstanding as of April 28, 2025. The company’s cash and cash equivalents slightly increased to $1.1 million from $1.088 million at the end of 2024. The total liabilities decreased to $2.2 million from $2.5 million, primarily due to a reduction in accrued liabilities. The company’s accumulated deficit grew to $175.5 million, indicating ongoing challenges in achieving profitability.

Strategically, Helius has made several moves to bolster its financial position, including a private placement of unsecured promissory notes that generated $1.3 million in gross proceeds. Additionally, the company entered into warrant exercise inducement agreements that brought in approximately $3.4 million. These efforts are part of a broader strategy to secure funding for ongoing operations and clinical trials, particularly for the PoNS device, which is aimed at treating neurological conditions.

The company is also navigating compliance issues with Nasdaq, having received notifications regarding its failure to meet minimum bid price and stockholders' equity requirements. Helius has been granted extensions to regain compliance, with a deadline set for June 30, 2025. The company is actively working on strategies to address these compliance issues while continuing to pursue reimbursement agreements for its products, including recent progress with Anthem Blue Cross Blue Shield.

Looking ahead, Helius Medical Technologies anticipates continued operating losses as it seeks to expand its commercialization efforts and secure additional funding. The company remains focused on the development of its PoNS device and plans to submit for FDA authorization for stroke treatment by the end of 2025. However, the ongoing global economic conditions and market uncertainties pose risks to its operational and financial stability.