Heart Test Labs Files 2024 10-K

TL;DR

HSCS 10-K filed: lots of preferred stock, warrants, and notes from past deals with MSW and FRV.

AI Summary

Heart Test Laboratories, Inc. filed its 10-K for the fiscal year ending April 30, 2024, reporting on its financial condition and business operations. The company's filings indicate various financial instruments and agreements, including convertible preferred stock, common stock warrants, and promissory notes, with specific dates and entities like Matthews Southwest Holdings Inc. and Front Range Ventures LLC involved in past transactions.

Why It Matters

This filing provides a comprehensive overview of Heart Test Laboratories' financial health and strategic positioning for investors and stakeholders, detailing past transactions and potential future obligations.

Risk Assessment

Risk Level: medium — The company's filings detail complex financial instruments and past transactions, suggesting potential financial complexities and risks.

Key Numbers

• 2024-04-30 — Fiscal Year End (The period covered by the 10-K filing.)
• 2024-07-29 — Filing Date (The date the 10-K was officially submitted to the SEC.)

Key Players & Entities

• Heart Test Laboratories, Inc. (company) — Filer of the 10-K
• Matthews Southwest Holdings Inc. (company) — Involved in a note transaction on 2023-09-20
• Front Range Ventures LLC (company) — Involved in a promissory note transaction on 2019-08-12
• Series B Convertible Preferred Stock (financial_instrument) — Mentioned in relation to fiscal years 2022-2023
• Common Stock Warrants (financial_instrument) — Subject of a Securities Purchase Agreement on 2023-11-16

FAQ

Key Financial Figures

• $24.90 — million, based on the closing price of $24.90. The stock price and the number of shar
• $0.001 — 5,966 shares of Common Stock, par value $0.001 per share, issued and outstanding post
• $240 billion — rt disease cost the United States about $240 billion in each of 2018 and 2019, including the
• $17 billion — B spending on medical imaging, or over $17 billion annually according to the U.S. Centers
• $200 — ostic test with a cost of approximately $200 with, according to the American College

Filing Documents

• hscs-20240430.htm (10-K) — 3136KB
• hscs-ex4_17.htm (EX-4.17) — 107KB
• hscs-ex21_1.htm (EX-21.1) — 5KB
• hscs-ex23_1.htm (EX-23.1) — 5KB
• hscs-ex31_1.htm (EX-31.1) — 16KB
• hscs-ex31_2.htm (EX-31.2) — 16KB
• hscs-ex32_1.htm (EX-32.1) — 9KB
• hscs-ex32_2.htm (EX-32.2) — 9KB
• hscs-ex97_1.htm (EX-97.1) — 49KB
• img149549875_0.jpg (GRAPHIC) — 533KB
• 0000950170-24-087271.txt ( ) — 11443KB
• hscs-20240430.xsd (EX-101.SCH) — 1365KB
• hscs-20240430_htm.xml (XML) — 1207KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 23 Item 1B. Unresolved Staff Comments 63 Item 1C. Cybersecurity 63 Item 2.

Properties

Properties 64 Item 3.

Legal Proceedings

Legal Proceedings 64 Item 4. Mine Safety Disclosures 64 PART II Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 65 Item 6. Reserved 67 Item 7.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 68 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 78 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data F- 1 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 79 Item 9A.

Controls and Procedures

Controls and Procedures 79 Item 9B. Other Information 80 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 80 PART III Item 10. Directors, Executive Officers and Corporate Governance 85 Item 11.

Executive Compensation

Executive Compensation 92 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 97 Item 13. Certain Relationships and Related Transactions, and Director Independence 99 Item 14. Principal Accounting Fees and Services 102 PART IV Item 15. Exhibits, Financial Statement Schedules 104 Item 16. Form 10-K Summary 108 iv Table of Contents PART I

B usiness

Item 1. B usiness. Company Overview We are a medical technology company focused on applying innovative AI-based technology to an ECG, also known as an "EKG," to expand and improve an ECG's clinical usefulness. Our objective is to make an ECG a far more valuable cardiac screening tool by expanding its clinical capability to detect a broader range of heart disease conditions through the development of AI-based ECG algorithms ("AI-ECG"). We are seeking to provide AI-ECG solutions in any care setting worldwide in a manner that best suits different providers, either via our cloud-based application that can receive an upload from one of the millions of ECG devices currently in clinical use or via our proprietary MyoVista wav ECG device. The MyoVista wav ECG, is a resting 12-lead ECG that will incorporate HeartSciences' proprietary AI-ECG algorithm designed to provide diagnostic information related to cardiac dysfunction as well as conventional ECG information in the same test. We are also developing a cloud-based platform to host AI-ECG algorithms, both developed by us internally or by third-parties, on an ECG hardware agnostic basis (the "MyoVista Insights Cloud Platform"). In the future, we intend to deliver a range of AI-ECG algorithms, via each product. Neither the MyoVista wav ECG, MyoVista Insights Cloud Platform nor any of our AI-ECG algorithms are yet cleared for marketing by the FDA. The AI-ECG algorithms are intended to provide diagnostic information which has traditionally required cardiac imaging. We believe, the combination of a device agnostic cloud platform and MyoVista wav ECG device would allow us to offer AI-ECG solutions across a wide range of healthcare settings from large heath systems to frontline or point of care environments such as primary care. The initial revenue model for the MyoVista wav ECG device, which involves the use of the MyoVista hardware, associated software and consumables for each test, is expected to be "razor-razorblade" as

View Full Filing

View this 10-K filing on SEC EDGAR