Helius Medical Technologies Inc, a neurotech company focused on neurological wellness, reports financial results for the quarter ended June 30, 2022.
Second Quarter and Recent Business Updates
- Fulfilled first U.S. prescriptions of PoNS Therapy for use in multiple sclerosis (“MS”) patients experiencing gait deficit.
- Made PoNS Therapy training available online and on-demand in July, eliminating a major bottleneck to patient access.
- Launched Patient Therapy Access Program in June to provide qualifying patients access to on-label PoNS Therapy at a significantly reduced price.
- Added Shepherd Center in Atlanta, Georgia to the Company-sponsored Therapeutic Experience Program (“TEP”), an open label observational interventional trial designed to evaluate the impact of subjects’ adherence on PoNS Therapy outcomes in patients with MS.
- Q2 2022 revenue increased by 68% to $119 thousand compared to $71 thousand in Q2 2021.
- Closed an $18 million public offering on August 9th, raising net proceeds of approximately $16.4 million.
“The second quarter saw the start of PoNS commercial sales in the United States, and we have already received several hundred inquiries. Though revenue during the quarter increased on a year-over-year basis, we did not have the sequential growth we’d expected. As a result, we’ve implemented several programs to eliminate the impediments to prescription fulfillment. First, we introduced an online training module so physical therapists can be trained in three hours or less, at the therapist’s own pace, instead of through an in-person, multi-day course. This module, which became available in mid-July, is already proving effective in onboarding physical therapists and clinics speedily and more efficiently, without added cost, allowing patients and physicians to spend less time waiting for a qualified and available therapist,” said Dane Andreeff, President and Chief Executive Officer of Helius Medical Technologies.
“On June 1st, we also announced the launch of the Patient Therapy Access Program, which provides patients suffering from MS access to on-label PoNS Therapy at a greatly reduced price and, later this year, we will roll out our online pharmacy initiative. Through a network of fully licensed providers with e-prescribing capabilities, our upcoming direct-to-consumer e-platform will streamline access to PoNS Therapy, and further reduce the time it takes for a patient to get the treatment they need.”
“We are excited to build on this momentum going into the second half of the year, and our recently announced public offering gives us the runway to focus on getting PoNS Therapy to as many patients as possible,” concluded Mr. Andreeff.
Second Quarter 2022 Financial Results
Total revenue for the second quarter of 2022 was $119 thousand, an increase of 67.6% compared to $71 thousand in the second quarter of 2021 and was comprised primarily of product sales in both periods.
For the three months ended June 30, 2022, cost of sales was $88 thousand as compared to $67 thousand for the three months ended June 30, 2021. The increase was primarily attributable to higher product sales in the current period. Gross profit for the second quarter of 2022 was $31 thousand, compared to gross profit of $4 thousand in the second quarter of 2021.
Operating expenses for the second quarter of 2022 decreased to $3.5 million, compared to $6.2 million in the second quarter of 2021. The decrease was primarily due a decrease in stock-based compensation expense as well as lower product development and clinical trial costs.
Operating loss for the second quarter of 2022 decreased $2.7 million to a loss of $3.4 million, compared to an operating loss of $6.2 million in the second quarter of 2021.
Net loss was $3.8 million for the second quarter of 2022, compared to a net loss of $6.0 million, in the corresponding prior year period. The basic and diluted net loss per share for the second quarter 2022 was $0.97, compared to net loss per share of $2.58 in the second quarter 2021.
As of June 30, 2022, the Company had cash of $3.3 million, compared to $11.0 million at December 31, 2021. Including the estimated net proceeds of $16.4 million from our August 9, 2022 financing, our proforma cash balance at June 30, 2022 is $19.7 million. Helius Medical Technologies had no debt outstanding at June 30, 2022.
[Source(s): Helius Medical Technologies Inc, GlobeNewswire]