Helius Medical Technologies Q2 2024 Results and Outlook

Helius Medical Technologies recently announced its financial results for the second quarter of 2024, emphasizing its strategic efforts to enhance access to its PoNS therapy for multiple sclerosis (MS) patients. This includes collaborations with federal agencies and the expectation of Medicare reimbursement.

Although the company faced a decline in total revenue year-over-year and reported an operating loss, Helius maintains a positive outlook for future growth driven by recent partnerships and a successful public offering that has extended its financial resources into 2025.

### Key Takeaways
– Helius Medical Technologies has formed a partnership with Lovell Government Services to provide PoNS therapy to MS patients within the VA and other federal agencies.
– The PoNS device has secured its first third-party reimbursement of $23,900.
– The Centers for Medicare & Medicaid Services (CMS) has assigned HCPCS codes for the PoNS controller and mouthpiece, with final Medicare payment determinations forthcoming.
– Total revenue for Q2 2024 amounted to $182,000, down from $256,000 during the same period last year.
– The company recorded an operating loss of $3.2 million and a net loss of $1.6 million.
– As of June 30, 2024, Helius has $6.4 million in cash and raised an additional $6.4 million through a public offering.
– Helius is preparing for FDA submission for stroke authorization and is exploring the expansion of PoNS therapy to include traumatic brain injury (TBI).

### Company Outlook
– Helius expects a substantial increase in revenue following the anticipated Medicare reimbursement effective October 1, 2024.
– There is already a backlog of Medicare patients awaiting reimbursement.
– Patient enrollment for the stroke clinical trial is complete, with FDA submission targeted for the first half of 2025.
– Helius is assessing the viability of PoNS therapy for TBI patients based on encouraging study results.

### Concerns
– The company’s total revenue has decreased compared to the same period last year.
– Helius reported an operating loss and a net loss for the quarter.

### Positive Factors
– The company’s strategic partnerships and the anticipated Medicare reimbursement are likely to enhance revenues.
– Recent financing efforts and warrants are projected to extend the company’s financial runway into the second half of next year.
– Progress in the stroke trial and promising TBI study results could open new market opportunities.

### Challenges
– PoNS sales have been limited due to a cash-pay model and the high cost of the device.

### Earnings Call Highlights
During the earnings call, no questions were posed, indicating a potentially cautious investor sentiment. Helius Medical Technologies is navigating significant financial challenges while laying the foundation for growth in the healthcare sector. The company’s strategic moves, including federal partnerships and focus on Medicare reimbursement, are seen as pivotal for future success. With completed stroke trial enrollment and an impending FDA submission, Helius aims to broaden its therapeutic applications and improve its financial sustainability in the coming years.