HSCSWHIGH SIGNALFINANCIAL10-K

HeartSciences experienced severe financial deterioration with cash declining 81% to $1.1M, stockholders' equity collapsing 97% to just $205K, and current liabilities more than doubling while revenue dropped 77%.

The company is in acute financial distress with minimal cash runway and virtually no equity cushion remaining. The massive increase in current liabilities combined with plummeting cash suggests potential liquidity challenges and raises going concern questions about the company's ability to continue operations without immediate financing.

Comparing 2025-07-24 vs 2024-07-29View on EDGAR →
FINANCIAL ANALYSIS

HeartSciences' financial position deteriorated dramatically across all key metrics, with total assets shrinking 56% to $4.2M driven primarily by the 81% cash burn down to $1.1M. The balance sheet shows severe stress as stockholders' equity collapsed 97% to just $205K while current liabilities more than doubled to $3.7M, creating a significant working capital deficit. Revenue declined 77% to only $4K while the company slashed capital expenditures by 95%, indicating both operational struggles and severe cash preservation measures that signal potential going concern issues.

FINANCIAL STATEMENT CHANGES
Current Liabilities
Balance Sheet
+111.4%
$1.8M→$3.7M

Current liabilities surged 111.4% — significant near-term obligations; verify ability to meet short-term debt.

Stockholders Equity
Balance Sheet
-97.2%
$7.3M→$205K

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Capital Expenditure
Cash Flow
-95.1%
$64K→$3K

Capex reduced 95.1% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Accounts Receivable
Balance Sheet
+87.4%
$2K→$4K

Receivables surged 87.4% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Total Liabilities
Balance Sheet
+83.8%
$2.2M→$4.0M

Liabilities grew 83.8% — significant increase in debt or obligations, assess impact on financial flexibility.

Cash & Equivalents
Balance Sheet
-81.1%
$5.8M→$1.1M

Cash declined 81.1% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Gross Profit
P&L
-80.3%
$13K→$2K

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Revenue
P&L
-76.6%
$19K→$4K

Revenue declined 76.6% — significant demand weakness or market share loss warrants investigation.

Current Assets
Balance Sheet
-70.5%
$7.4M→$2.2M

Current assets declined 70.5% — monitor working capital adequacy and short-term liquidity.

Total Assets
Balance Sheet
-55.6%
$9.5M→$4.2M

Total assets contracted 55.6% — asset sales, write-downs, or balance sheet optimization underway.

LANGUAGE CHANGES
NEW — 2025-07-24
PRIOR — 2024-07-29
ADDED
At July 23, 2025, the registrant had 1,934,280 shares of Common Stock, par value $0.001 per share, issued and outstanding.
References to "Fiscal 2026" refer to the 12-months ending April 30, 2026, references to "Fiscal 2025" refer to the 12-months ended April 30, 2025, and references to "Fiscal 2024" refer to the 12-months ended April 30, 2024.
In June 2025 we received Breakthrough Device designation from the FDA for the aortic stenosis algorithm licensed from Mount Sinai.
In July 2025, the American Society of Echocardiography released updated guidelines for evaluating Left Ventricular Diastolic Dysfunction ( LVDD ), placing increased emphasis on the echocardiographic measure for impaired cardiac relaxation (e ) and now requiring age-based threshold adjustments.
The device s embedded impaired cardiac relaxation algorithm already incorporates age-adjusted measures, previously agreed with the FDA.
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REMOVED
The stock price and the number of shares at October 31, 2023 takes into account a 1-for-100 reverse stock split which became effective on May 17, 2024 (the Reverse Stock Split ).
At July 26, 2024, the registrant had 855,966 shares of Common Stock, par value $0.001 per share, issued and outstanding post the Reverse Stock Split.
References to "Fiscal 2025" refer to the 12-months ending April 30, 2025, references to "Fiscal 2024" refer to the 12-months ended April 30, 2024, and references to "Fiscal 2023" refer to the 12-months ended April 30, 2023.
References to our IPO refer to the initial public offering of Heart Test Laboratories, Inc.
REVERSE STOCK SPLIT Effective May 17, 2024, the Company effected a 1-for-100 reverse stock split of its issued and outstanding shares of Common Stock (the Reverse Stock Split ).
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