HeartBeam, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>HeartBeam, Inc. has filed its 2023 10-K, detailing financial performance and corporate activities for the fiscal year ending December 31, 2023.</b>

AI Summary

HeartBeam, Inc. (BEATW) filed a Annual Report (10-K) with the SEC on March 20, 2024. HeartBeam, Inc. filed its 2023 Form 10-K on March 20, 2024, reporting on its fiscal year ending December 31, 2023. The company is incorporated in Delaware and its principal business address is in Santa Clara, California. The filing covers the period from January 1, 2023, to December 31, 2023. Key financial data points such as common stock, additional paid-in capital, and retained earnings are detailed for fiscal years 2021, 2022, and 2023. The report includes information on various equity instruments including stock options, restricted stock, and warrants issued during the reporting periods.

Why It Matters

For investors and stakeholders tracking HeartBeam, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of HeartBeam's financial health, operational status, and strategic initiatives for the past fiscal year, crucial for investors assessing the company's trajectory. The detailed financial statements and disclosures within the 10-K are essential for understanding the company's capital structure, equity changes, and potential future dilution from outstanding warrants and stock options.

Risk Assessment

Risk Level: medium — HeartBeam, Inc. shows moderate risk based on this filing. The company operates in the medical device sector, which is subject to significant regulatory hurdles and market competition, as indicated by its SIC code 3841 (Surgical & Medical Instruments & Apparatus).

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess HeartBeam's financial position and future growth prospects.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-20 — Filing Date (Date of submission)
• 001-41060 — SEC File Number (Company's SEC file number)
• 24767861 — Film Number (SEC film number)

Key Players & Entities

• HeartBeam, Inc. (company) — Filer name
• 2024-03-20 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• Santa Clara, CA (location) — Business address
• 408-899-4443 (phone) — Business phone
• 3841 (industry_code) — Standard Industrial Classification
• Alliance Global Partners (company) — Mentioned in relation to private placement
• Maverick Capital Partners LLC (company) — Mentioned in relation to private placement and convertible debt

FAQ

Risk Factors

• Regulatory Compliance [high — regulatory]: The company must comply with stringent regulations in the medical device industry, including FDA requirements, which can be costly and time-consuming.
• Market Adoption and Competition [high — market]: Success depends on market acceptance of its products and competition from established players in the cardiovascular diagnostic market.
• Need for Additional Funding [medium — financial]: The company has a history of operating losses and may require additional capital to fund its operations and product development.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-20: 10-K Filing Date — Date HeartBeam, Inc. submitted its annual report.

Key Financial Figures

• $0.0001 — he registrant's common stock, par value $0.0001 per share, issued and outstanding, of t
• $51,458,385 — f securities held by non-affiliates was $51,458,385 as of June 30, 2023, based on the closi
• $2.41 — 30, 2023, based on the closing price of $2.41 for the registrant's common stock on Ju
• $66 billion — ical Device Market size is estimated at $66 billion in 2024, and is expected to reach $133
• $133 billion — llion in 2024, and is expected to reach $133 billion by 2029, growing at a compounded annual
• $1 — jected to cost the US healthcare system $1 trillion by 2035. As cardiovascular 6
• $18 billion — sis is projected to reach approximately $18 billion by 2030, a CAGR of approximately 8%.
• $42 billion — Patient Monitoring Devices in 2021 were $42 billion. With a CAGR of approximately 11% from
• $125 billion — et is projected to reach a valuation of $125 billion by 2032. The adoption of such technolog
• $10 billion — unnecessary ED visits lead to well over $10 billion in unnecessary healthcare expenditures.

Filing Documents

• beat-20231231.htm (10-K) — 1293KB
• exhibit231.htm (EX-23.1) — 3KB
• exhibit311-12312023.htm (EX-31.1) — 11KB
• exhibit321-12312023.htm (EX-32.1) — 5KB
• exhibit971.htm (EX-97.1) — 42KB
• beat-20231231_g1.jpg (GRAPHIC) — 74KB
• beat-20231231_g2.jpg (GRAPHIC) — 43KB
• beat-20231231_g3.jpg (GRAPHIC) — 8KB
• beat-20231231_g4.jpg (GRAPHIC) — 90KB
• 0001779372-24-000002.txt (&nbsp;) — 5751KB
• beat-20231231.xsd (EX-101.SCH) — 34KB
• beat-20231231_cal.xml (EX-101.CAL) — 37KB
• beat-20231231_def.xml (EX-101.DEF) — 192KB
• beat-20231231_lab.xml (EX-101.LAB) — 454KB
• beat-20231231_pre.xml (EX-101.PRE) — 324KB
• beat-20231231_htm.xml (XML) — 492KB

Risk Factors

Item 1A. Risk Factors 23

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 38

Cybersecurity 38

Item 1C. Cybersecurity 38

Properties

Item 2. Properties 39

Legal Proceedings

Item 3. Legal Proceedings 39

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 39 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 40

RESERVED

Item 6. RESERVED 42

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 42

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 49

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 49

Changes in and Disagreements With Accountants on Accounting and Financial Disclosures

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures 49

Controls and Procedures

Item 9A. Controls and Procedures 49

Other Information

Item 9B. Other Information 50 I tem 9C. Disclosure Regarding Foreign Jurisdiction that Prevent Inspections. 50 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 51

Executive Compensation

Item 11. Executive Compensation 57

Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters 61

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 63

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 63 Part IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 65

Form 10-K Summary

Item 16. Form 10-K Summary 67

Signatures

Signatures 68 4 Part I

Business

Item 1. Business Overview We are a medical technology company focused on transforming cardiac care through the power of personalized insights. Our aim is to deliver innovative, higher resolution ambulatory cardiac monitoring solutions that can be used by patients anywhere to enable the detection and monitoring of cardiac disease outside of a healthcare facility. Our ability to develop higher resolution Electrocardiogram ("ECG") solutions is achieved through the development of our proprietary and patented Vector Electrocardiography ("VECG") technology platform. Our VECG technology is capable of capturing three-dimensional ("3D") vector images of the heart's electrical activity and synthesizing a 12-Lead ("12L") ECG from these signals. In early studies, our approach demonstrated equal or superior diagnostic capability than traditional hospital-based 12L ECG systems. Our products (hereinafter "Product" or "Products") require Food and Drug Administration ("FDA") clearance and have not been cleared for marketing. We believe our Products and services will benefit many stakeholders, including patients, healthcare providers, and healthcare payors. We are developing our initial Product ("HeartBeam AIMIGo TM " or "AIMIGo"), to address the rapidly growing ambulatory cardiac monitoring market. HeartBeam AIMIGo is comprised of a credit-card sized electrocardiogram device, a patient application, a physician portal and powerful cloud-based algorithms. We intend to show that our easy-to-use device (without external electrodes) provides signals equivalent to a standard 12L device, and therefore will have a number of applications for ambulatory use. We believe that we are uniquely positioned to play a central role in ambulatory cardiac monitoring including high-risk coronary artery disease patients. Initial studies have shown that our ischemia detection system may be more accurate than existing ambulatory monitoring solutions. Coronary artery disease ("CAD") patients are at i

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