Heart Test Laboratories, Inc., a Texas-based medical device company specializing in orthopedic, prosthetic, and surgical appliances and supplies, has announced a change of its corporate name to HeartSciences Inc. The name change was approved by shareholders earlier this year and has been officially filed with the Secretary of State of Texas as of October 11, 2024.
The company, which is listed on The Nasdaq Stock Market LLC under the ticker symbols HSCS for its common stock and HSCSW for its warrants, is awaiting confirmation of the name change's effectiveness on the state level. Once confirmed, HeartSciences Inc. plans to implement the new name in the market and will announce the effective date separately.
The rebranding to HeartSciences Inc. will not alter the company's ticker symbols nor the CUSIP number for its public warrants and outstanding shares of common stock. Current stock certificates and public warrants will remain valid and will not require exchange. The name change is the only modification to the company's Amended and Restated Certificate of Formation.
The Certificate of Amendment, filed as part of the company's current report, details the administrative aspects of the name change. It is included as Exhibit 3.1 in the report. This move comes as the company continues its operations under the new name, HeartSciences Inc., without any further changes to its corporate structure or operations.
In other recent news, Heart Test Laboratories has made several significant developments. The company recently extended its existing loan agreement with Front Range Ventures LLC, pushing the maturity date of its $500,000 loan to September 30, 2025. This alteration could impact the company's financial position and cash flow management, as outlined in their recent 8-K report filed with the Securities and Exchange Commission.
Heart Test Laboratories also encountered a substantial reduction in its stock target by Maxim Group, from $35.00 to $12.00. Despite this, Maxim Group maintains a Buy rating on the company's stock. This change follows the fiscal year 2024 results, which revealed lower than expected expenses and a narrower adjusted EBITDA loss.
The medical device company is progressing with the FDA submission process for its MyoVista device and AI-ECG algorithm, expected to be submitted in 2025. However, due to an extended timeline for these submissions, Maxim Group anticipates initial revenue generation in fiscal year 2026 and adjusted EBITDA profitability in fiscal year 2028. Lastly, Heart Test Laboratories reported holding $5.8 million in cash as of April 2024, with additional funding expected through July 2025 via an equity line and at-the-market offerings.
InvestingPro Insights
As HeartSciences Inc. (formerly Heart Test Laboratories, Inc.) undergoes its corporate rebranding, InvestingPro data provides additional context to the company's financial situation. Despite the name change, the company faces significant challenges. With a market capitalization of just $2.9 million USD, HeartSciences is a small player in the medical device industry. The company's revenue for the last twelve months stands at a modest $0.02 million USD, reflecting its early-stage nature.
InvestingPro Tips highlight both potential opportunities and risks. On the positive side, HeartSciences "holds more cash than debt on its balance sheet," which could provide some financial flexibility during its transition. Additionally, "analysts anticipate sales growth in the current year," suggesting potential for improvement.
However, investors should be cautious. The company is "quickly burning through cash" and is "not profitable over the last twelve months." This is further emphasized by the stark operating income margin of -37,907.43% for the last twelve months, indicating significant operational challenges.
The stock's performance has been volatile, with a strong return over the last month (13.17%) contrasting sharply with a significant decline over the past year (-91.53%). This volatility aligns with the InvestingPro Tip noting that "stock price movements are quite volatile."
For investors considering HeartSciences, it's worth noting that InvestingPro offers 13 additional tips that could provide further insights into the company's prospects as it navigates this rebranding phase.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.