HeartBeam Q1 2026 Earnings Call - Lean Commercial Rollout and Cash Runway Extended

Operator: Greetings, and welcome to the HeartBeam 1st quarter 2026 financial results conference call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. Before we begin the formal presentation, I would like to remind everyone that the statements made on the call and webcast may include predictions, estimates, or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risk and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflects our opinions only as of date of this presentation.

Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in the light of new information or future events. Throughout today’s discussion, we will attempt to present some important factors relating to our business that may affect our prediction. You should also review our most recent Form 10-K and Form 10-Q for a more complete discussion of these factors and other risks, particularly under the heading Risk Factors. A press release detailing these results crossed the wire this afternoon and is available in the investor relations section of our company’s website, heartbeam.com. Your host today, Robert Eno, Chief Executive Officer, Timothy Cruickshank, Chief Financial Officer, and Bryan Humbarger, Chief Commercial Officer, will present results of operation for the first quarter ending March 31st, 2026.

At this time, I will turn the call over to HeartBeam Chief Executive Officer, Mr. Rob Eno. Please go ahead.

Robert Eno, Chief Executive Officer, HeartBeam: Thank you, operator. The topics we’ll cover on today’s call are listed on the slide. We’ll start with a brief summary of our recent progress, followed by a reminder of the HeartBeam System and our unique technology platform. Bryan Humbarger, our Chief Commercial Officer, will provide an overview of our limited commercial launch. We’ll then provide updates on our major growth initiatives, the on-demand 12-lead patch and our heart attack detection and AI efforts, followed by the financial results. We’ll end with Q&A. I’ll briefly summarize our recent progress. We’ll cover each of these in more detail throughout the presentation. We continue to execute well across both commercialization and our growth initiatives. On commercialization, we signed our 1st commercial partnership in Q1 with ClearCardio, anchoring us in New York City, Dallas, and South Florida.

We’ve since added Atelier Health, a Beverly Hills concierge practice led by physicians affiliated with Cedars-Sinai, extending us to Southern California and giving us flagship sites in all four of our target geographies. Together, these partnerships establish our initial foothold in the direct pay segment, which represents roughly 5 million U.S. patients. On heart attack detection, we enrolled the first patient in our ALIGN-ACS pilot study, which compares HeartBeam to a standard 12-lead ECG in chest pain patients in the emergency department. Enrollment’s ahead of schedule. The study is a key step toward FDA indication expansion into a market of 20 million at-risk patients. On the 12-lead patch, we completed our first working prototype in Q1. We’ve now initiated a pilot study focused on ischemia detection. We believe this will be the best-in-class patch in a $2 billion market with established reimbursement. Partnership discussions continue to progress.

On AI, we announced a strategic collaboration with Mount Sinai, pairing their AI and clinical expertise with our 3D ECG signal collection technology to develop next-generation algorithms for heart attack detection, wellness, and personalized cardiac assessment. Before we dive into detail updates, I wanna remind everyone about our initial product, the HeartBeam System, and our platform technology. HeartBeam is dedicated to developing groundbreaking ECG technology for patients to use at home to empower them to feel confident about their heart health. HeartBeam has developed the first-ever portable cable-free ECG that can synthesize a 12-lead ECG. Our unique IP-protected approach captures the heart’s electrical signals in three dimensions or non-coplanar directions and synthesizes the signals into a 12-lead ECG. The system is designed to be easy to carry and easy for patients to use at the time of symptom onset anywhere, anytime.

The technology is supported by a team of U.S.-based board-certified cardiologists who are available 24/7 to interpret the clinical grade ECG and triage patients appropriately to ensure timely care. The system has received 2 FDA clearances for arrhythmia assessment. With these 2 clearances in place, we’re embarking on our limited commercial launch. As you’ll hear, we’re extremely pleased with the reception of the system among leading concierge physicians and preventive cardiologists. HeartBeam’s more than just the first cable-free synthesized 12-lead ECG. It is true platform technology. The major advance that we pioneered and what our key IP is based around is our novel signal collection technology, which captures the heart’s electrical signals in 3 axes, left and right, up and down, and into the body. These 3D signals can be converted into a familiar 12-lead waveform. This core technology can be applied to multiple form factors.

We’re embarking on the launch of the HeartBeam System, the credit card-sized form factor. Recently, we announced the second form factor, an on-demand 12-lead extended wear patch. We believe that this patch can disrupt the ambulatory cardiac monitoring market, a $2 billion revenue market. The technology in these two form factors has the potential to enable a full range of 12-lead ECG capabilities, including currently cleared arrhythmia assessment and future indications of heart attack detection and personalized AI algorithms. We’ll discuss our progress toward heart attack detection and AI algorithms shortly. Now I want to turn it over to Bryan Humbarger, HeartBeam’s Chief Commercial Officer, to provide an update on our commercial efforts. Bryan?

Bryan Humbarger, Chief Commercial Officer, HeartBeam: Thank you, Rob. Our commercial goals remain consistent. Execution of the plan is well underway. As a review, we stated that in the first half of 2026, where we are today, that we are focused on validating our premium value proposition, refining the HeartBeam systems and processes, signing and onboarding our anchor accounts, and proving the scaling efficiency of the model. In the second half of 2026, we will shift to proving deep adoption inside those anchor accounts, establishing the funnel that will support our 2027 revenue and adoption goals, developing white papers and clinical proof points to drive further adoption, and beginning to expand the sales team around our anchor geographies. In 2027 and beyond, we will scale revenue, move to a train-the-trainer model for implementation, expand our clinical research opportunities, and expand the sales, clinical, and account management teams.

These are the specific goals we set for in the first half of 2026 alongside our status against each one. Our first 2 goals are focused on signing and onboarding anchor accounts in key targeted markets and executing a concentrated rollout strategy in 4 key geographies: New York City, Dallas, South Florida, and Southern California. We’ve now built flagship accounts in all 4 markets. Since our last call, we’ve added Atelier Health, located in Beverly Hills and led by physicians affiliated with Cedars-Sinai. This establishes access of the HeartBeam technology in Southern California. Additionally, our first customer, ClearCardio, has recently expanded its footprint from Dallas to New York and South Florida, bringing along our technology as part of their offering in these markets. These are technology-forward customers that are rapidly growing in the preventative cardiology space. We also set out to validate our premium value proposition.

Early physician engagement and flagship account traction have clearly reinforced demand for our personalized 12-lead ECG capability. Physicians who have spent time with the technology are confirming what we believe, that this is a meaningfully differentiated tool. Finally, we prioritize the need to refine physician workflows. We’ve been working directly with ClearCardio and Atelier on rollout planning, workflow integration, and the implementation processes. What we are learning is informing a cleaner, faster onboarding playbook. We will continue to prove our ability to scale efficiently. We are demonstrating this by accessing large patient populations through a focused set of strategically selected practices with a lean commercial team. Our focus will be on growth, which is the expansion of HeartBeam access in the target geography and adoption, the penetration of patients in our contracted accounts.

For the limited commercial launch, we plan to execute this strategy with a sales director and one implementation specialist. After this phase, we plan to have a sales director and one to two implementation specialists per geography to support our growth and adoption efforts. Finally, we will begin measuring growth and adoption in addition to other key metrics as we move into this next phase of commercialization. Now I’ll turn it back to Rob.

Robert Eno, Chief Executive Officer, HeartBeam: Thanks so much, Bryan. I want to discuss our key growth initiatives: the 12-lead on-demand patch and our efforts on heart attack detection and AI. I’ll start with the 12-lead patch. As I mentioned when we unveiled it last quarter, we believe that the HeartBeam 12-lead patch can disrupt the ambulatory cardiac monitoring market. This market consists of patches that are worn for up to 30 days and continually record the patient’s heart rhythms. It’s a rapidly growing $2 billion revenue market with existing reimbursement consisting of two segments: long-term continuous monitors and mobile cardiac telemetry, or MCT. These existing devices are 1-3 leads and are limited to arrhythmia detection and monitoring. HeartBeam has developed an on-demand 12-lead patch and has produced a working prototype of the device. It functions just like existing patches, continually recording the patient’s heart rhythms with a single lead.

By using HeartBeam’s patented technology, a patient simply places two fingers on the front of the device to record a clinical-grade 12-lead ECG. This has the potential to bring better diagnostic capabilities, including ischemia detection, to the patch segment. The device integrates into existing workflows and leverages the existing reimbursement. We believe this will be the best-in-class patch. During the last call, we presented the results of market research surveys of cardiologists, electrophysiologists, and emergency medicine physicians. The research indicated that a 12-lead patch could cause fully half of the market to shift and could grow the market as a whole by a third. We announced on Monday that we’ve initiated a pilot clinical study in Europe aimed at demonstrating the ability of the HeartBeam patch to detect ischemia.

The pilot study will enroll approximately 50 patients with a high risk of coronary artery disease. Each patient undergoes exercise stress testing, a standard diagnostic procedure used to identify ischemic changes while wearing the HeartBeam patch. Immediately following exercise, patients will obtain a synthesized 12-lead ECG by placing two fingers on the front of the patch. The ECG will be compared directly with the standard 12-lead ECG recorded at the same time. The study will help inform the company’s regulatory strategy for the HeartBeam patch. As previously noted, we’re in discussions with a number of industry players on a potential partnership to bring the patch to market. We’ve had several productive meetings since our last call, including at the American College of Cardiology and the Heart Rhythm Society meetings, and we’ll keep you informed of the progress.

At HeartBeam, we think about the card and the patch not just as 2 products, but as entry points into the patient’s cardiac monitoring journey. First, as you see on the left, patients use the HeartBeam System, the card, as an episodic monitor for peace of mind and to get physician feedback as symptoms occur. They’re able to use the device throughout their lives to provide the physician with information to identify and monitor heart abnormalities. Often, a cardiologist will want more information, such as the arrhythmia burden that will necessitate use of the patch, so the card can directly lead to the patch. On the right-hand side is the 12-lead patch, a continuous monitor that’s worn for a period of weeks. It can create a 12-lead ECG on demand.

This could be prescribed when physicians want this continuous information to assist in a new diagnosis or after an emergency department visit or a procedure such as revascularization or a cardiac ablation. A patient who finishes with the HeartBeam patch could transition to the card for a number of reasons. For example, to monitor intermittent episodes over their lifetime, or if the patch is prescribed after a procedure, once this acute phase is over, the patient who’s still high risk could transition to the card. The patch can directly lead to the card. This is a flywheel that can drive further usage and deeper engagement with the technology. As we’ve discussed previously, one of the major problems in cardiology is that there’s no good way for patients who experience chest pain to know if they’re having a heart attack.

Patients wait an average of 3-4 hours before seeking care. Every 30 minutes of delay increases the risk of death by 7.5%. The 12-lead ECG is the standard for heart attack detection. Traditional 12-lead ECGs have 10 wired electrodes that need to be placed by a technician. They’re not applicable for home use. This is a major problem, with 20 million people in the U.S. at risk of a heart attack, including 8 million who have had a previous heart attack. HeartBeam’s technology has the potential to address this major need. We have multiple proof-of-concept studies showing that the HeartBeam ECG is similar to a standard 12-lead ECG in detecting heart attacks. One important point about this effort is it’s the same HeartBeam System that we’re launching with an expanded indication.

The ALIGN-ACS pilot study is underway in Europe, comparing the HeartBeam ECG to a standard 12-lead ECG in detecting heart attacks. The study is conducted in the emergency room, enrolling patients who arrive with chest pain. This will allow the study to enroll much more rapidly than a study that prescribed devices to patients and waited for them to have events. We expect the study to complete enrollment by the end of the third quarter of 2026, and the study will inform the design of our FDA pivotal study. The study is enrolling well and is currently ahead of schedule. Next, I’d like to describe the vision of how our System will work with heart attack detection. First, here’s the workflow today. A patient with symptoms uses the HeartBeam System, and the data is sent to a cardiologist who’s available 24/7.

The cardiologist reviews the ECG and the symptoms and responds to the patient in just a few minutes with an ECG interpretation of the patient’s arrhythmic state. With the expanded indication, the on-call cardiologist will review for the presence of heart attacks, reviewing the ECG in comparison with the baseline ECG symptoms and history. The physician will also benefit from an AI algorithm specifically for MI detection. We plan to develop a deep learning model trained on ECGs taken when patients present with chest pain. The algorithm is trained on all of the data, including which patients go on to be revascularized. In general, there are 2 types of heart attacks. ST elevation myocardial infarctions, or STEMIs, are the classic heart attack, which can be readily identified on an ECG.

Non-ST elevation myocardial infarctions, or NSTEMIs, are more subtle and sometimes are not picked up by a physician reviewing the ECG. By training the algorithm on which patients actually need revascularization, we believe we’ll be able to catch NSTEMIs as well as STEMIs. Back to the workflow. Our vision is that the patient’s data will be sent to the physician, but in parallel, we run through the AI algorithm, which will provide insights on the potential of both STEMI and NSTEMI heart attacks, so the physician’s interpretation and recommendation will be informed by the AI algorithm. We’ll have further updates on these efforts, including the clinical and regulatory timelines. Our robust clinical trial pipeline, which includes the ALIGN-ACS pilot study, the Indonesia HEADSTART-ACS study, and a U.S. pivotal study, should provide on the order of 1,000 patients to further validate the AI algorithm we’re developing.

We showed this slide in the last call two months ago, laying out the key milestones for the year. We’re making excellent progress achieving what we said we would. All of the milestones for Q1 are complete, and we’re well on the way to achieving the Q2 milestones. On commercialization, as Bryan Humbarger walked through, we have signed and are onboarding our first two accounts, giving us flagship sites in all four of the key geographies that we laid out last quarter. The early traction in these accounts is validating our premium positioning. Physicians who have spent meaningful time with the system are confirming that this is a highly differentiated product. On heart attack detection, enrollment for the ALIGN-ACS pilot study is underway, and we expect to have updates in the coming months on HEADSTART-ACS and the ALIGN-ACS enrollment completion.

On AI with the Mount Sinai collaboration finalized, we’re focusing on developing algorithms, including MI-focused and wellness algorithms, which will enhance the value of the HeartBeam System for our initial patient population. Finally, on the 12-lead patch, we’re in the midst of partnership discussions, and we added to this chart the pilot ischemia study on the patch, which is underway. Next, Tim will run us through the financials. Tim.

Timothy Cruickshank, Chief Financial Officer, HeartBeam: Great. Thanks, Rob. This past month, we strengthened our financial position through an $11.5 million financing. We closed the underwritten public offering of common stock on April sixteenth. Total gross proceeds of $10 million before costs, and the underwriter as well exercised the over allotment option of $1.5 million in common stock for further gross proceeds. The offering was led by our first commercial customer, ClearCardio, alongside our executive leadership, board members, a number of existing investors, as well as several fundamental institutional investors. This level of participation in the financing, including the fundamental institutional participation, is a strong signal of conviction in the business model and our trajectory. We ended March thirty-first, 2026 with a cash balance of just over $2 million.

When you include the net proceeds from the recent offering and over allotment, we’d have a pro forma cash balance of approximately $12.4 million. This provides the cash runway to advance HeartBeam into our next phase of growth. The common stock-only financing continues to provide the company with a clean cap table and lots of optionality moving forward. Our focus remains on execution towards our operational milestones while managing cash and dilution responsibly. We believe the progress we’re making commercially, combined with continued advanced development of our strategic initiatives that Rob walked us through, they position us well to execute in a meaningful way throughout 2026 and into 2027. Taking a look at the Q1 2026 financials, we had a net loss of $4.7 million, with net cash used in operating activities of $3.6 million.

This is a 19% decrease in operating cash outflow compared to the same quarter in the prior year. The Q1 spend and EPS came in ahead of expectations. In Q1 of every year, there are several one-time annual payments within it, and we also made a few timely investments into our commercial launch and the 12-lead patch development. Even with these investments, we continue to show our ability to execute on our aggressive milestones while still delivering the 19% year-over-year expenditure reduction you saw in the quarter. We’ve got a really lean but dedicated team, and we continue to judiciously time our investments, providing us with the ability to maintain a low cost profile. To that end, we previously stated our cash outflow expectations for 2026 would be in the $17 million-$19 million range.

That was based on a more aggressive hiring of the sales team than we believe is necessary in the early days. As Bryan described earlier, we have the ability to continue to prove out our initial commercial launch with a focused, lean team. Based on that, we estimate our cash outflow will be below $16 million for all of 2026. If you take the cash outflows of $3.6 million in Q1 of this year, that equates to approximately $12 million in cash outflows for the remaining three quarters for 2026, and that is prior to factoring in cash receipts from customers from our commercialization efforts. This provides us funding into 2027 and the runway necessary to accomplish several critical milestones we have ahead.

In summary, the financing we closed this past month extends our runway as we continue to advance our commercial launch and our exciting development initiatives in the 12-lead patch, as well as our MI detection and AI initiatives. Combined with our balanced financial discipline, including the 19% year-over-year reduction in operating cash burn delivered in Q1, we believe we have the cash runway to advance HeartBeam well into our next phase of growth. With that, Rob, I’ll turn it back over to you.

Robert Eno, Chief Executive Officer, HeartBeam: Thanks so much, Tim. We’re pursuing a massive $40 billion opportunity. We’re executing on our plan to address major markets. The technology is significantly de-risked with the achievement of the first-ever FDA-cleared, cable-free, synthesized 12-lead ECG for arrhythmia assessment. The platform technology is backed by strong IP and clinical evidence. We’ve strengthened our balance sheet with the April 2026 offering. We’re following a capital-efficient strategy with thoughtful and judicious timing of investments, as Tim laid out. Crucially, we’re executing on multiple value creation opportunities in 2026. On the limited commercial launch, we have built flagship account presence in N.Y., Dallas, South Florida, and Southern California. Our cost-effective expansion strategy does not require a huge sales force. On heart attack detection, we’re rapidly advancing clinical validation to support indication expansion with the same HeartBeam System.

The ALIGN-ACS pilot study is enrolling rapidly and is ahead of schedule. We believe that HeartBeam’s on-demand 12-lead patch will be the best-in-class product in a $2 billion revenue market with existing reimbursement. It will be the only 12-lead extended wear patch, and its ability to detect ischemia as well as the arrhythmia will be game-changing. We have initiated a pilot study that’s aimed at demonstrating the ischemia detection capabilities. We’re advancing our efforts on a strategic partnership to speed adoption as well. Finally, the Mount Sinai agreement is key to our AI strategy and the development of next-generation algorithms, including MI detection and wellness algorithms. Longer term, we’ll be partnering with Mount Sinai to create a new class of 12-lead screening and predictive algorithms that are with the patient at home. We thank you all for attending, and now I would like to open it up to Q&A.

Operator?

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your questions from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please. I’ll report for questions. The first question comes from the line of Kyle Buser with Titan Partners. Please go ahead.

Kyle Buser, Analyst, Titan Partners: Hi, Rob, Tim, and Bryan. Thanks for taking my questions. Congrats on all the recent progress here. It’s impressive. Maybe I’ll start with the commercial rollout following your two anchor partners. Can you talk about how many patients are collectively managed by these partners? Also, any updates on pricing? Are we still thinking the $500-$1,000 range?

Bryan Humbarger, Chief Commercial Officer, HeartBeam: Hey, Kyle, this is Bryan. Thanks for the question. As we’ve discussed, really this first half of the year is signing and getting these anchor accounts on board. We’re really focused on that. As we move through the second half of Q2 and into the second half of the year, we will be, you know, focused much more on the adoption in those specific practices. Their number of patients in those specific practices are really shared publicly.

As we go back and look at why we focused on these specific geographies, looking at our premium value proposition and where the patients are, our focus has really been on going after those 150,000 patients that are in this preventative concierge market and getting to 30,000 of those patients to our break-even point. When we look at these four markets, they represent, you know, between the anchor accounts and other similar customers in the area, tens of thousands of patients in these specific geographies. We feel very confident about that. Regarding the pricing, spot on.

I think we talked about on the last call, $750-$1,000 is what we look at from a pricing perspective on the annual basis for the subscription fee. Early indications that we haven’t received any pushback on that. We’re confident that we’re coming in and being able to establish that value right out of the gates.

Robert Eno, Chief Executive Officer, HeartBeam: Hey, Kyle.

Got it.

this is Rob. Great, great to hear from you. Just to add one quick thing.

Bryan Humbarger, Chief Commercial Officer, HeartBeam: Yeah

to what Bryan said. Great answer, Bryan. On the number of patients, as Bryan said, because they’re private accounts, they don’t like us saying that. I think you can expect in the near future, as we have more and more accounts, we’ll be able to give a number that says collectively under these accounts, this number of patients is being managed, just like you’re getting to. It’s a little early because it exposes too much about the customers, you can expect us to report that as part of what Bryan said, the, some of the metrics that we’re looking at.

Kyle Buser, Analyst, Titan Partners: Okay. Excellent. makes sense. Appreciate that. Then maybe moving on to heart attack detection in the ALIGN-ACS pilot study. Rob, I believe you mentioned previously it will be about 100 patients, correct me if I’m wrong. Given the nice design of just enrolling ER chest pain patients, it sounds like it’s ahead of schedule. Once you finalize the design for the pivotal study, can you talk a little bit about the timing and what that will look like for the enrollment of that pivotal?

Robert Eno, Chief Executive Officer, HeartBeam: Sure. The ALIGN-ACS is on the order of 100-120 patients. It’s enrolling well ahead of schedule. You know, we still believe, we’re comfortable in that enrollment by the end of Q3. You know, what we’re doing is, as I mentioned, is that study design we’re learning a lot from, and that will inform the discussions with FDA for the pivotal study design. We’re also talking with potential investigators in the U.S. Nothing more to update in terms of further timing beyond ALIGN-ACS, but as soon as we know more, we’ll make sure that we lay it out for you.

Kyle Buser, Analyst, Titan Partners: Okay. Appreciate that. Maybe I can just slip 1 more in, regarding the HEADSTART-ACS study. How will that differ from ALIGN-ACS, and yeah, number of patients, et cetera?

Robert Eno, Chief Executive Officer, HeartBeam: Yeah, we’ll talk more about that in a little bit. It’s broadly the same design, meaning that it’s looking at patients in emergency rooms with chest pain and comparing it to a 12-lead ECG. It’s been sponsored by the government of Indonesia that’s very interested in potential usage of our System. It’s gonna be a bigger study on the order of 500 patients. Because of the design and the interest from Indonesia, it’s largely paid for by the government. It’s a good opportunity for us to get more patients both for our overall learning of the manual interpretation, but also, as I suggested, to be able to have a pool of patients to validate our upcoming AI algorithm as well.

More details on that, you know, in the coming weeks, I believe.

Kyle Buser, Analyst, Titan Partners: Okay. Got it. Appreciate that. Thanks for taking my question.

Bryan Humbarger, Chief Commercial Officer, HeartBeam: Thanks, Kyle.

Operator: Thank you. Next question comes from the line of Yi Chen with H.C. Wainwright. Please go ahead.

Katie, Analyst, H.C. Wainwright: Hi, this is Katie on for Yi. I was hoping we could get a little bit more clarification on how we should model revenue from this subscription billing. Do you expect it to build consistently quarter-over-quarter, or is it going to be ebb and flow throughout the year? Then what is a realistic revenue expectation for full year 2026 with the current number of deployed accounts?

Timothy Cruickshank, Chief Financial Officer, HeartBeam: Great. Thank you, Katie. Happy to take that.

Bryan Humbarger, Chief Commercial Officer, HeartBeam: Go ahead, Tim.

Timothy Cruickshank, Chief Financial Officer, HeartBeam: Yeah. Thank you. From a revenue perspective, it will be largely straight-lined over the course of the year. It’s all about performance obligations and, you know, and the commitment we have to, you know, these annual contracts with customers. You know, if you take $750 as an average price, you know, that’s largely, you know, straight-lined over the course of the year. There will be a portion that you may expect to see recognized earlier in the contract in recognition of some of the obligations we have of onboarding a customer, some of the additional costs required, you know, of getting the device out the door, onboarding. There will be, you know, a slight higher portion of revenue early in the contract, and then from there, straight-lining of it.

What’s interesting or what’s helpful to the company, from a cash flow perspective, we expect the majority of customers to pay for the first year up front. When you look at it from a cash perspective, you take the majority of that right up front. From a P&L perspective, it’s straight lined, if that helps.

Katie, Analyst, H.C. Wainwright: Great. Thank you.

Timothy Cruickshank, Chief Financial Officer, HeartBeam: Yep.

Katie, Analyst, H.C. Wainwright: Could I ask 1 follow-up? Looking at your discussion on deep adoption within those flagship accounts, can you give us an idea of what that full adoption looks like in a single practice? Like, how many devices per practice, and what does a fully penetrated flagship account generate annually?

Bryan Humbarger, Chief Commercial Officer, HeartBeam: Yeah. Thanks, thanks for that. Again, we can’t get really too far into the actual numbers at these accounts at this stage. What I can tell you from an adoption standpoint is, we’re really looking at this from an onboarding process of the new patients onboard existing patients that are in the practice, and then another pool of patients that are actually coming to the practice because of the HeartBeam technology. What we will begin to start showing and sharing, probably in the August timeframe is a little bit more detail on that question, and we’ll have some more data to share. Again, we’re tracking how far, how many patients within those given practices, the HeartBeam technology benefits at a given time.

I think as we continue forward, we’re going to have additional strategies. More to come on that. I think we’ll have much more detail for you in August.

Timothy Cruickshank, Chief Financial Officer, HeartBeam: Katie, just to round out your question on revenue projections and then give you some insights for modeling in terms of, you know, what our average accounts look like, I’m, you know, adding to what Bryan said. We’ve said historically these early accounts have anywhere from 400 to 4,000 patients. If you take the kind of middle number of 2,000, anywhere from, you know, 500 to 1,000 of those patients we would be expecting to get onto our technology, if not more. That’s not gonna be the case for massive rollout, you know, when we’re scaling.

For these early accounts, you know, if we can get to 50% of those accounts, you know, from a modeling perspective, that’s, you know, say 1,000 patients at $1,000 or $750, you know, that’s $750,000 to $1 million, you know, kind of per account if you think about it that way. Not speaking specifically to these first 2 accounts, but just in terms of in general. The way we look at it is we’ve talked about 30,000 patients being our break-even point, and it’s a 2-year pathway to break even if you take the very slow, kind of methodical rollout of going after all of these smaller accounts individually.

To kind of back into the number of accounts or sites that would be required to get there, you know, over that timeframe, you can back into those numbers. What we believe is gonna happen is if you break that 30,000 patient number down into about, you know, a third of them coming from this early segment, we believe we’ll have the data points we need with these reference sites, with the flagship accounts that are going to lead to channel partners and/or distributors that are chains, some of these large chains that would make up the next 20,000 wave of patients. That’s the way we plan to accelerate that timeline ahead of the, you know, kind of longer ground and pound, you know, 2-year, 2.5-year timeframe.

We get the initial adoption from about 10,000 patients in these smaller accounts, get the proof points we need, and then we’ll be able to quickly go to these larger chains and accelerate from there.

Katie, Analyst, H.C. Wainwright: Great. Thank you guys. I appreciate it.

Bryan Humbarger, Chief Commercial Officer, HeartBeam: Thanks, Katie.

Operator: Thank you. A reminder to all the participants that you may press star and 1 to ask a question.

Bryan Humbarger, Chief Commercial Officer, HeartBeam: We have no questions. Please go ahead.

Webcast Moderator, Conference Call Moderator: We have a couple of webcast questions that we are going to take and the webcast question is, do you contemplate making your product known to investors and patients alike by producing television commercials to air on business channels like Fox Business, CNBC, et cetera?

Robert Eno, Chief Executive Officer, HeartBeam: I’ll take that one. One of the things I really like about our strategy is that we don’t need to do a DTC campaign, direct-to-consumer campaign, which can be very, very expensive. We’re targeting specifically accounts that have high net worth individuals. Our market research showed that high net worth individuals have a high likelihood to pay. Interestingly, those who are in concierge practices were willing to pay even more. This is, we believe, the best way to access this market by, as Bryan described, by going after a relatively small amount of practices. These practices work with us to, in a sense, sell it to their patients.

That’s part of the reason why this strategy and our target of getting to 30,000 patients for breakeven can be done efficiently because we sign a concentrated set of practices and then the practices work with us to drive deeper adoption. I will say, though, that in early discussions with these practices, some of these practices are ones that have very well-known personalities as patients, and the physicians have expressed a like a willingness to work with us if there’s patients that are prominent that get on our technology. They may be interested in speaking on behalf of it. That could come out organically with what we’re doing, but we don’t have plans to be spending for advertising, et cetera.

We think this, in a sense, B2B model that we have now is the quickest and most efficient way to grow.

Webcast Moderator, Conference Call Moderator: Our next question asks, can you please walk us through management’s thought process to not raise funds on the spike after approval and then to wait until the price was under $1 to raise capital?

Timothy Cruickshank, Chief Financial Officer, HeartBeam: Sure, I can take that. Thank you for the question. I know it’s on a lot of people’s minds and so happy to take it. There’s a number of factors that go into financing decisions. I think, you know, they stem from listening to current shareholders, working within any commitments or historic covenants that might be present, importantly as well, bringing the right new shareholders onto the register that are gonna properly support the company and support the share price moving forward. I mean, this is especially true in the medical device space where additional funding is often required. At the end of the day, the takeaways I have, we closed a clean deal with common stock only.

We believe we brought very strong partners on in terms of long-term investors onto the register, and now it’s our job to continue to execute, bring visibility to the story, and get the valuation to a level we all know this technology and the company deserves. I think we’ve got a lot of optionality in terms of how clean we’ve kept the cap table, the types of, you know, institutional investors and retail investors we have on the register. With all the milestones we have ahead, you know, we’re extremely confident in where we’re headed and believe we can get this valuation to, you know, to the place that we all want it to be.

Webcast Moderator, Conference Call Moderator: Next question asks, do we expect Q2 revenue?

Timothy Cruickshank, Chief Financial Officer, HeartBeam: Yeah, I’m happy to take that, Rob, if you want me to. Yeah. We’re right on track.

Robert Eno, Chief Executive Officer, HeartBeam: Yeah.

Timothy Cruickshank, Chief Financial Officer, HeartBeam: Sure. Yeah. Q1, we’re right on track with all the plans we’ve laid out. Bryan’s done a great job providing updates, we’re really excited about where we’re headed. We will see some revenue in Q2, as we’ve said from the beginning, or for the last couple of quarters, the first half of the year, not a revenue story. We’re not focused on, you know, driving revenue. We’re focused on driving the right partners to this technology, proving deep adoption so that we have a repeatable, scalable model for, you know, for the long term. There will be revenue, as well as cash receipts from customers to a small degree in Q2.

As we head into the second half of this year, that’s when things start to get more exciting and we really put the funnel in place, give the visibility to the street in terms of where we’re headed for scaling revenue in 2027. You can expect a little, but consistent with what we’ve said historically, it’s all about getting the right people, the right accounts, you know, into the technology and driving deep into those accounts so that we can show you the trajectory ahead.

Webcast Moderator, Conference Call Moderator: Our last webcast question asks, could you elaborate on the medical professionals’ feedback on the product, how it’s differentiating itself and justifying its use as opposed to traditional 12-lead systems? Specifically, do medical professionals think the more frequent measurements from HeartBeam are beneficial as opposed to taking measurements twice a month with a 12-lead?

Robert Eno, Chief Executive Officer, HeartBeam: Great. Bryan, do you wanna handle that one? I’ll follow up.

Bryan Humbarger, Chief Commercial Officer, HeartBeam: Yeah, I’ll start out with that one.

Robert Eno, Chief Executive Officer, HeartBeam: Great.

Bryan Humbarger, Chief Commercial Officer, HeartBeam: It’s a great question. The feedback has been actually exceeded my expectations coming into this. I’ve had a lot of experience with single and other multi-lead technologies in the past. What’s clear from the clinicians is that with other technologies out there, it gives you a little bit of information and maybe opens the door on what’s going on with the patient. Typically, the next step for those patients where there’s any concern whatsoever is bringing the patient into the office to get a 12-lead ECG or sometimes into the emergency department.

I think what’s really been interesting to see with our clinicians is the fact that they can finally arm their patients with the same medical-grade product that they and the same type of technology that if the patient was in the emergency department, they would be getting the full picture of what’s going on with that patient. Now it’s something that their patients can have anytime, anywhere. It’s been really encouraging to see that. Some of the feedback that we’ve heard, and we were just recently at the HRS conference and some of these other national or international conferences, is to the second part of that question.

I think because there’s never really been an opportunity to take 12-lead ECG outside of a hospital or clinic environment, there is a lot of interest to say if we were to have our patients do this 1 a month or 1 a week and start looking at the data longitudinally, what are some of the things that we can learn? Again, as part of our early adopter experience, these are exactly the types of customers that we’re focused on. They’re bringing these types of questions. They’re very eager to see what the data can provide and eyes wide open from the standpoint that no one’s been able to do this before out of the hospital setting on a consistent basis. Rob, anything to add?

Robert Eno, Chief Executive Officer, HeartBeam: Great answer, Bryan. The only, very little to add. I’ll just say that the other thing which is interesting is some of the things we have in the pipeline that we’ve talked about before, such as wellness algorithms like cardiac age that we can do off of a ECG, a 12-lead ECG, is we think really differentiated and the physicians are quite excited about.

Bryan Humbarger, Chief Commercial Officer, HeartBeam: That concludes our question and answer session.

Operator: Thank you. Ladies and gentlemen, we have reached the end of question and answer session. I would now like to turn the floor over to Robert Eno for closing comments.

Robert Eno, Chief Executive Officer, HeartBeam: Thank you, operator. I’d like to thank each of you for joining our earnings conference call today. We look forward to continuing to update you on our ongoing progress and growth. If we were unable to answer any of your questions today, please reach out to our IR firm, MZ Group, who would be more than happy to assist. Thank you very much.

Operator: Thank you. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.