Heart Test Laboratories, Inc.(HSCSW), a medical technology company speci alizing in cardiac diagnostic solutions, has released its financial results for the third quarter of 2023. The company reported a net loss of $1.37 million for the quarter, while its revenue remained at zero. Despite the challenging financial figures, Heart Test Laboratories is making significant strides in research and development.
Steady Revenue and Operating Loss
In the unaudited financial statement for the third quarter ending July 31, 2023, Heart Test Laboratories, Inc. disclosed that its revenue remained at zero, unchanged from the previous year's third quarter revenue of $3,200. The company's cost of sales was also reported as zero for this period.
While the company's revenue showed no significant growth, Heart Test Laboratories did not shy away from investment in research and development, which is evident in its financial statements. The company reported operating expenses of $1.33 million for the third quarter of 2023. This includes $565,632 allocated to research and development and $765,023 for selling, general, and administrative expenses.
Net Loss and Stockholder's Equity
The net loss for Heart Test Laboratories, Inc. in the third quarter of 2023 amounted to $1.37 million, compared to a net loss of $1.57 million for the same period in 2022. The loss per share, both basic and diluted, was reported as $0.13 for the third quarter of 2023 and $0.28 for the same quarter in 2022. The weighted average common shares outstanding for the third quarter of 2023 were 10,331,505, while it was 5,645,230 for the same period in 2022.
The company's stockholders' equity (deficit) was noted at -$519,702 as of July 31, 2023, compared to $230,557 as of April 30, 2023. This change in equity reflects the company's financial performance and its recent activities, including the sale of common stock.
Cash Flow and Financing Activities
In terms of cash flow, Heart Test Laboratories, Inc. reported a net cash used in operating activities of approximately -$1.40 million for the third quarter of 2023, compared to -$1.81 million for the same period in 2022. The company's cash and cash equivalents decreased from $1.66 million at the beginning of the quarter to $575,654 at the end of the quarter.
Financing activities during the period included the issuance of common stock under an equity line, resulting in net proceeds of $391,950. Additionally, there was a principal repayment of finance lease obligations totaling -$67,588.
Heart Test Laboratories, Inc. remains focused on its mission to develop advanced cardiac diagnostic solutions. Despite the challenging financial figures, the company continues to invest in research and development, which may lead to innovative breakthroughs in the field of heart diagnostics. The company's financial position and strategic initiatives will be closely monitored as it works towards achieving its objectives in the coming quarters.