Pulsenmore Ltd. (PLSM) - Form 20-F Summary
Business Context and Reporting Period
Company: Pulsenmore Ltd.
Reporting Period: Fiscal year ended December 31, 2025.
Business Overview: An emerging medical device company incorporated in Israel, focused on non-invasive portable ultrasound solutions for home use. Primary products include the Pulsenmore ES (prenatal care) and Pulsenmore FC (fertility monitoring). The company received FDA clearance for the Pulsenmore ES in October 2025. Shares are dual-listed on the Tel Aviv Stock Exchange (TASE) and Nasdaq (since January 2026).
Corporate Action: A 1-for-8 reverse share split was effected on December 28, 2025. All share data in this summary reflects the post-split basis.
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 (NIS '000s) | 2025 (USD '000s) | 2024 (NIS '000s) | 2024 (USD '000s) |
|---|---|---|---|---|
| Total Revenues | 40,024 | 12,547 | 9,661 | 3,028 |
| Product/Service Revenue | 9,484 | 2,973 | 9,661 | 3,028 |
| GE Settlement Revenue | 30,540 | 9,574 | - | - |
| Cost of Revenues | 6,342 | 1,988 | 6,084 | 1,907 |
| Gross Profit | 33,682 | 10,559 | 3,577 | 1,121 |
| Operating Loss | (12,164) | (3,814) | (42,215) | (13,234) |
| Net Loss | (15,853) | (4,970) | (36,736) | (11,516) |
| Cash & Equivalents | 21,604 | 6,773 | 41,170 | 12,906 |
| Short-term Deposits | 47,531 | 14,900 | 62,853 | 19,703 |
Note: USD translations use the exchange rate of NIS 3.19 = $1.00 as of December 31, 2025.
Material Changes vs. Prior Period
- Revenue Surge: Total revenue increased 312% to NIS 40.0 million. This was driven primarily by a one-time settlement with GE Healthcare (GEHC) recognized in August 2025, amounting to NIS 30.5 million ($9.6 million). This included NIS 7.1 million for cancelled orders and NIS 23.4 million for the release of deferred revenue related to distribution rights.
- Operating Performance: Operating loss improved significantly from NIS 42.2 million in 2024 to NIS 12.2 million in 2025, largely due to the GE settlement revenue.
- Product Revenue: Organic product and service revenue remained relatively flat at NIS 9.5 million in 2025 compared to NIS 9.7 million in 2024, with approximately 96% of organic revenue derived from Clalit Health Services in Israel.
- Liquidity: Cash and cash equivalents decreased by approximately NIS 19.6 million ($6.2 million) year-over-year, primarily due to operating cash outflows and exchange rate impacts, though the company maintains significant short-term deposits.
Guidance, Outlook, and Risks
Outlook & Strategy:
- U.S. Expansion: Following FDA clearance in October 2025, the company is prioritizing commercial launch in the United States in 2026, targeting partnerships with healthcare providers and telemedicine organizations.
- Product Pipeline: Continuing development of Pulsenmore MC (pulmonary monitoring) and Pulsenmore FC (fertility), with a new 5-year agreement signed with Clalit for Pulsenmore FC in January 2026.
- Capital Needs: Management believes current cash and deposits are sufficient for operations for at least the next 12 months. However, the company expects to continue incurring losses and may need to raise additional capital to fund growth and R&D.
Key Risks & Contingencies:
- Geopolitical Instability: Operations are based in Israel. The filing highlights significant risks from ongoing regional conflicts (Hamas, Hezbollah, Iran), including potential disruptions to supply chains, military reserve call-ups of key personnel (CFO, General Counsel, Controller), and economic instability.
- Customer Concentration: The company is highly dependent on Clalit Health Services, which accounted for the vast majority of organic revenue in 2025.
- Regulatory & Trade: Risks include potential product recalls, changes in FDA/CE regulations, and new U.S. tariffs (10-15% global tariffs mentioned as of Feb 2026) which could impact cost of goods sold for the U.S. market.
- Government Grants: The company has significant liabilities for royalties payable to the Israel Innovation Authority (IIA) and KORIL based on future sales, totaling a maximum potential liability of approximately NIS 15.6 million ($4.9 million) for IIA grants.
Investor Verification Checklist
- GE Settlement Details: Verify the finality of the GEHC settlement and confirm no further contingent liabilities or disputes remain regarding the distribution agreement.
- U.S. Commercialization: Assess the progress of U.S. partnerships and the timeline for the 2026 commercial launch post-FDA clearance.
- Clalit Dependency: Review the terms of the new 5-year Clalit agreement for Pulsenmore FC and the stability of the Pulsenmore ES supply chain.
- Geopolitical Impact: Monitor the status of key employees on military reserve duty and the operational status of the Omer, Israel production facility.
- Cash Burn Rate: Analyze the sustainability of the current cash position (approx. $21.7 million total liquid assets) against the projected burn rate for U.S. expansion and R&D.
- Grant Liabilities: Confirm the calculation of royalty liabilities to the IIA and the impact of future revenue growth on these obligations.