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Helius Medical Technologies (HSDT)
NASDAQ:HSDT
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Helius Medical Technologies
(NASDAQ:HSDT)
39Underperform
Positive Factors
Reimbursement Milestone
HSDT announced its first reimbursement payment from a healthcare provider for its PoNS Device.
Study Results
HSDT announced positive results from the PoNS Therapeutic Experience Program, or PoNSTEP, study for people with multiple sclerosis.
Negative Factors
Financial Pressure
The company will likely need to raise capital before the end of 2Q25.
Pricing Disparity
The significant pricing disparity between CMS reimbursement rates for HSDT's PoNS device and the prices secured through the VA Federal Supply Schedule is a major concern.
Reimbursement Challenges
The unfavorable CMS reimbursement decision remains a significant barrier, limiting access to a key patient population and dampening near-term US revenue potential.
Helius Medical Technologies (HSDT) vs. S&P 500 (SPY)
Market Cap
$2.39M
Dividend YieldN/A
Average Volume (3M)129.19K
Price to Earnings (P/E)―
Beta (1Y)0.38
Revenue Growth-19.25%
EPS Growth59.74%
CountryUS
Employees21
SectorHealthcare
Sector Strength77
IndustryMedical - Devices
Share Statistics
EPS (TTM)-5.76
Shares Outstanding6,126,778
10 Day Avg. Volume88,745
30 Day Avg. Volume129,188
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.19
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 Covering1
Helius Medical Technologies Business Overview & Revenue Model
Company DescriptionHelius Medical Technologies, Inc., a neurotechnology company, focuses on developing, licensing, and acquiring non-invasive technologies for the treatment of symptoms caused by neurological disease or trauma. Its product, Portable Neuromodulation Stimulator (PoNS), is a non-surgical medical device intended for use as a short term treatment of gait deficit due to symptoms from multiple sclerosis and balance deficit due to mild-to-moderate traumatic brain injury, as well as to be used in conjunction with supervised therapeutic exercise. The company is headquartered in Newtown, Pennsylvania.
How the Company Makes MoneyHelius Medical Technologies generates revenue through the sale and distribution of its PoNS device, primarily targeting healthcare providers, clinics, and rehabilitation centers that treat patients with neurological disorders. The company may establish partnerships with healthcare institutions and engage in licensing agreements to expand the reach and adoption of its technology. Additionally, Helius could explore reimbursement opportunities with insurance providers to facilitate broader market access. Key revenue streams include direct sales of the PoNS device, strategic partnerships, and potential licensing fees from its technology.
Helius Medical Technologies Financial Statement Overview
Summary
Helius Medical Technologies is facing significant financial challenges with declining revenue and profitability. The company reports consistent net losses, negative free cash flow, and a moderate reliance on equity financing, which strains its overall financial health.Income Statement
Helius Medical Technologies has shown declining revenue over recent years with a significant drop from $644,000 in 2023 to $520,000 in 2024. The company reports consistent net losses, with a net profit margin of -2257.69% in 2024. The EBIT and EBITDA margins are both negative, indicating operational difficulties. Revenue growth is negative, further reflecting the challenging business environment.30
Negative
Balance Sheet
The company's balance sheet reveals a highly leveraged position with a debt-to-equity ratio of 0.01 in 2024, indicating minimal use of debt financing. However, stockholders' equity has decreased over time, reducing financial strength. The equity ratio is 29.89%, suggesting a moderate reliance on equity financing. Return on equity is negative due to consistent net losses.40
Negative
Cash Flow
The cash flow statement indicates negative free cash flow of -$11,046,000 in 2024, signaling cash flow challenges. The operating cash flow to net income ratio is negative, reflecting poor cash generation from operations compared to net losses. Despite some financing cash inflows, the company struggles with cash outflows, impacting its liquidity position.35
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 502.00K | 520.00K | 644.00K | 787.00K | 522.00K | 661.00K | Gross Profit |
| -31.00K | -62.00K | 61.00K | 324.00K | 224.00K | 273.00K | EBIT |
| -13.00M | -13.90M | -12.43M | -14.76M | -18.14M | -14.39M | EBITDA |
| -12.95M | -13.90M | -12.11M | -14.50M | -17.82M | -13.90M | Net Income Common Stockholders |
| -8.86M | -11.74M | -8.85M | -12.56M | -18.12M | -13.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 9.00 | 1.09M | 5.18M | 14.55M | 11.01M | 3.33M | Total Assets |
| 9.00 | 3.54M | 7.69M | 17.29M | 14.10M | 6.55M | Total Debt |
| 368.02K | 12.00K | 57.00K | 110.00K | 3.00K | 91.00K | Net Debt |
| 368.01K | -1.08M | -5.13M | -14.44M | -11.00M | -3.24M | Total Liabilities |
| 583.95K | 2.48M | 5.34M | 9.14M | 2.85M | 2.68M | Stockholders Equity |
| 9.00 | 1.06M | 2.35M | 8.15M | 11.26M | 3.87M |
| Cash Flow | Free Cash Flow | ||||
| -10.70M | -11.05M | -10.45M | -14.33M | -13.44M | -11.81M | Operating Cash Flow |
| -10.70M | -11.04M | -10.42M | -14.31M | -13.39M | -11.74M | Investing Cash Flow |
| -8.00K | -5.00K | -29.00K | -11.00K | -56.00K | -9.00K | Financing Cash Flow |
| 7.58M | 6.95M | 1.08M | 17.87M | 21.13M | 9.64M |
Helius Medical Technologies Technical Analysis
Negative
0.39
Price Trends
0.50
Negative
0.57
Negative
0.65
Negative
Market Momentum
-0.03
Negative
42.65
Neutral
30.73
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 0.39 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.50, and below the 200-day MA of 0.65, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.65 is Neutral, neither overbought nor oversold. The STOCH value of 30.73 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 (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $682.59M | ― | -20.86% | ― | 11.89% | 79.18% | |
51 Neutral | $269.02M | ― | -55.25% | ― | 22.01% | 10.02% | |
50 Neutral | $9.08M | ― | -45.38% | ― | -48.61% | 32.18% | |
48 Neutral | $6.36B | 1.14 | -49.00% | 2.63% | 17.14% | 1.39% | |
46 Neutral | $1.29B | ― | -291.71% | ― | 26.81% | 26.47% | |
39 Underperform | $2.39M | ― | -688.88% | ― | -19.25% | 59.74% | |
30 Underperform | $54.02M | ― | 78.44% | ― | ― | ― |
* Healthcare Sector Average
Performance Comparison
HSDT
Helius Medical Technologies
0.39
-5.72
-93.62%
ATEC
Alphatec Holdings
10.23
-3.77
-26.93%
NURO
Neurometrix
4.41
0.61
16.05%
BYSI
Beyondspring
1.34
-1.22
-47.66%
LUNG
Pulmonx
6.76
-1.63
-19.43%
BVS
Bioventus
8.33
3.12
59.88%
Helius Medical Technologies Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -7.14% | Next Earnings Date: May 8, 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.
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.