Solana Company (HSDT) Q2 2024 earnings summary

Executive summary

• Achieved first third-party reimbursement for PoNS device, expanded VA and DoD contracts, and advanced stroke FDA submission efforts in the U.S. and Canada.

• Completed U.S. registrational program site enrollment for stroke, with FDA submission targeted for H1 2025.

• Closed a $6.4 million public offering in May 2024, raising $5.5 million in net proceeds and regaining Nasdaq equity compliance.

• Achieved significant reimbursement milestones, including VA, DOD, and third-party insurer approvals, and received preliminary CMS payment determination.

• Focused on expanding access to PoNS Therapy for MS and stroke patients, with ongoing clinical trials for stroke and TBI.

Financial highlights

• Q2 2024 revenue was $182,000, down $74,000 year-over-year due to program terminations, but up 35% sequentially from Q1 2024.

• Cost of revenue was $118,000, down from $184,000 year-over-year.

• Operating loss was $3.2 million, flat year-over-year; net loss was $1.6 million, or $0.64 per share.

• Cash and equivalents at June 30, 2024, were $6.4 million, with no debt and a projected cash runway into 2025.

• Gross margin for Q2 2024 was $64,000 on $182,000 revenue.

Outlook and guidance

• Anticipates significant revenue growth starting late 2024 with Medicare reimbursement effective October 1.

• Pathway to positive cash flow expected as reimbursement expands; existing capital expected to fund operations into 2025.

• FDA submission for stroke indication remains on track for H1 2025, with Canadian stroke study advancing.

• Expects CMS final rates in late August or early September 2024.