BEAT

HeartBeam, Inc. (BEAT) - Q1 2026 10-Q Summary

Business Context and Reporting Period

This report covers the quarterly period ended March 31, 2026. HeartBeam, Inc. is a medical technology company developing ambulatory cardiac monitoring solutions, specifically the HeartBeam System, which utilizes 3D ECG technology to synthesize 12-Lead ECGs. The Company received FDA clearance for its 3D ECG technology in December 2024 and for its 12-Lead ECG synthesis software in December 2025. As of the reporting date, the Company had 17 employees and operates as a single segment based in Santa Clara, California.

Key Financial Metrics

Note: All figures in millions unless otherwise noted. The filing does not provide gross margin data as there was no revenue.

Material Changes vs. Prior Period

• Expense Reduction: Total operating expenses decreased by 14% ($0.8 million) compared to Q1 2025. This was driven primarily by a 32% decrease in Research and Development (R&D) expenses ($2.4 million vs. $3.5 million), attributed to reduced product development costs, lower headcount-related costs, and decreased stock-based compensation.
• SG&A Increase: Selling, General, and Administrative (SG&A) expenses increased by 17% ($0.3 million), largely due to higher non-cash stock-based compensation ($0.4 million) and initial commercialization efforts.
• Liquidity Decline: Cash and cash equivalents decreased by approximately $2.4 million from the prior year-end balance of $4.4 million to $2.0 million, reflecting a net cash burn of $3.6 million from operations and $0.2 million from investing activities.
• Financing Activity: The Company raised $1.5 million net proceeds through its At-The-Market (ATM) program during the quarter, issuing 970,467 shares.

Outlook, Risks, and Subsequent Events

Going Concern Warning: Management has raised substantial doubt regarding the Company's ability to continue as a going concern. With only $2.0 million in cash as of March 31, 2026, and no material commercial revenue expected in 2026, existing liquidity is insufficient to fund operations for the next twelve months without additional capital.

Subsequent Financing: Following the quarter-end, the Company completed an underwritten offering on April 16, 2026, raising gross proceeds of $10.0 million. On May 7, 2026, the underwriter exercised the full overallotment option, raising an additional $1.5 million. Total gross proceeds from this offering were approximately $11.5 million.

Commercial and Clinical Progress:

• Commercial Launch: Announced partnerships with ClearCardio (March 2026) and Atelier Health (May 2026) for a limited commercial launch in concierge and preventive cardiology markets.
• Clinical Trials: Initiated the ALIGN-ACS pilot study for heart attack detection (enrollment expected Q3 2026) and a pilot study for the 12-Lead ECG patch in Serbia (May 2026).
• AI Collaboration: Entered a strategic collaboration with the Icahn School of Medicine at Mount Sinai to develop AI-based cardiac monitoring algorithms.

Investor Verification Checklist

• Cash Runway: Verify the net proceeds received from the $11.5 million subsequent offering and the updated cash runway post-closing.
• Revenue Recognition: Confirm the timeline for converting Letters of Intent (LOIs) with ClearCardio and Atelier Health into definitive, revenue-generating contracts.
• Regulatory Milestones: Monitor the results of the ALIGN-ACS pilot study and the 12-Lead patch pilot study, as these are critical for future FDA indications and reimbursement.
• Dilution Impact: Assess the impact of the 14.375 million shares issued in the subsequent offering on existing shareholder equity.
• Burn Rate: Evaluate if the reduction in R&D expenses impacts the timeline for future product development or regulatory approvals.