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Heart Test Laboratories, Inc.
(NASDAQ:HSCS)
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Rating:47Neutral
Price Target:
$3.00
▲(0.00% Upside)
Action:Reiterated
Date:10/07/26
The score is held down primarily by distressed financial fundamentals—massive losses, significant cash burn, and negative equity with very high debt. Technicals are mixed/neutral and do not offset the financial risk, while valuation remains weak due to losses and no dividend support. Corporate events add some upside optionality (FDA clearance and merger-related developments) but are tempered by Nasdaq equity noncompliance risk.
Positive Factors
Revenue and Gross Margin
The sharp TTM revenue increase and positive gross margin indicate that HeartSciences has achieved some commercial traction and that its offerings can generate gross profit. If sustained, this foundation could support operating leverage and improve the company’s ability to scale once its cost base is addressed.
Negative Factors
Severe Losses
Extremely large operating and net losses show that gross profit is currently insufficient to cover the company’s cost structure. Persistent losses reduce internally generated capital, increase dependence on financing, and make any improvement in revenue less meaningful until expenses are brought under control.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Gross Margin
The sharp TTM revenue increase and positive gross margin indicate that HeartSciences has achieved some commercial traction and that its offerings can generate gross profit. If sustained, this foundation could support operating leverage and improve the company’s ability to scale once its cost base is addressed.
Read all positive factors
Heart Test Laboratories, Inc. (HSCS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.30M
Dividend YieldN/A
Average Volume (3M)145.29K
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth-27.70%
EPS Growth61.44%
CountryUS
Employees14
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-3.20
Shares Outstanding4,969,283
10 Day Avg. Volume92,556
30 Day Avg. Volume145,293
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.03
Price to Sales (P/S)1525.77
P/FCF Ratio-0.88
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue2.65K
Enterprise Value/Gross Profit-91.09
Enterprise Value/Ebitda-1.28
Forecast
1Y Price Target
$12.00Price Target Upside300.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-2.62
Revenue Forecast (FY)N/A
Heart Test Laboratories, Inc. Business Overview & Revenue Model
Company Description
HeartSciences Inc. is a medical technology company dedicated to augmenting the clinical utility of electrocardiograms (ECGs) by integrating artificial intelligence (AI). The firm develops AI-enhanced ECG (AI-ECG) solutions, including an algorithm ...
How the Company Makes Money
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Heart Test Laboratories, Inc. Financial Statement Overview
Summary
Income Statement
6
Very Negative
Balance Sheet
8
Very Negative
Cash Flow
7
Very Negative
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.52K | 4.32K | 4.35K | 18.60K | 5.15K | 14.37K |
| Gross Profit | -131.45K | -128.80K | -125.48K | -82.61K | -24.56K | -20.08K |
| EBITDA | -9.34M | -8.28M | -8.22M | -6.16M | -5.98M | -4.43M |
| Net Income | -10.26M | -9.14M | -8.77M | -6.61M | -6.35M | -4.83M |
Balance Sheet | ||||||
| Total Assets | 3.74M | 5.26B | 4.22M | 9.50M | 3.29M | 2.09M |
| Cash, Cash Equivalents and Short-Term Investments | 29.91M | 1.66B | 1.10M | 5.81M | 1.66M | 918.26K |
| Total Debt | 4.00M | 3.94B | 2.99M | 1.04M | 1.57M | 6.16M |
| Total Liabilities | 5.77M | 5.04B | 4.02M | 2.19M | 3.06M | 8.15M |
| Stockholders Equity | -2.03M | 225.53M | 205.17K | 7.32M | 230.56K | -6.06M |
Cash Flow | ||||||
| Free Cash Flow | -1.32B | -7.47M | -7.44M | -6.20M | -5.79M | -3.65M |
| Operating Cash Flow | -1.32B | -7.43M | -7.41M | -6.07M | -5.77M | -3.64M |
| Investing Cash Flow | -280.15M | -44.45K | -30.19K | -125.27K | -18.31K | -1.93K |
| Financing Cash Flow | -23.56M | 8.03M | 2.73M | 10.34M | 6.53M | 3.84M |
Heart Test Laboratories, Inc. Technical Analysis
Positive
3.00
Price Trends
3.54
Negative
2.93
Positive
2.71
Positive
Market Momentum
-0.15
Positive
47.06
Neutral
39.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSCS, the sentiment is Positive. The current price of 3 is below the 20-day moving average (MA) of 3.42, below the 50-day MA of 3.54, and above the 200-day MA of 2.71, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 47.06 is Neutral, neither overbought nor oversold. The STOCH value of 39.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSCS.
Heart Test Laboratories, Inc. Risk Analysis
Heart Test Laboratories, Inc. disclosed 70 risk factors in its most recent earnings report. Heart Test Laboratories, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Heart Test Laboratories, Inc. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $16.30M | -1.03 | -816.25% | ― | -27.70% | 61.44% | |
45 Neutral | $7.86M | -1.05 | -142.81% | ― | -11.20% | -6.64% | |
44 Neutral | $5.75M | -0.05 | -547.15% | ― | 80.25% | 77.34% | |
43 Neutral | $1.18K | ― | -268.41% | ― | -8.54% | 40.91% | |
42 Neutral | $17.11M | -0.13 | -33.51% | ― | -89.02% | -107.75% | |
40 Underperform | $4.06M | -0.04 | -267.73% | ― | ― | 64.78% |
* Healthcare Sector Average
HSCS
Heart Test Laboratories, Inc.
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Heart Test Laboratories, Inc. Corporate Events
Business Operations and StrategyM&A TransactionsProduct-Related AnnouncementsRegulatory Filings and Compliance
HeartSciences Secures FDA Clearance for MyoVista wavECG
Positive
Oct 6, 2026
On October 6, 2026, HeartSciences announced that the U.S. Food and Drug Administration granted 510(k) clearance for its MyoVista wavECG device as a 12-lead resting electrocardiograph for adult and pediatric use in hospitals and healthcare faciliti...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
HeartSciences Extends Loan Terms Amid Pending Merger
Neutral
Oct 2, 2026
HeartSciences Inc. has maintained a longstanding financing arrangement with Front Range Ventures LLC, under which it borrowed $500,000 via a secured, non-convertible promissory note first issued on April 24, 2020 and repeatedly amended to adjust t...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A Transactions
HeartSciences to Merge with Fortitude Mining, Rebrand
Positive
Sep 17, 2026
On September 17, 2026, Fortitude Mining Holdings, Inc. announced that former Hut 8 chief executive Jaime Leverton will become CEO and join the board, effective September 21, 2026, while incumbent chief executive Andrea Childs moves into the chief ...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Fortitude Mining Invests in HeartSciences Ahead Planned Merger
Positive
Aug 20, 2026
In the second quarter of 2026, Fortitude Mining Holdings reported revenue of $20.9 million and adjusted EBITDA of $8.5 million, supported by mining approximately 33,646 Zcash at an average operating hash rate of 4.0 GSol/s. The company expanded it...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Fortitude Investment Strengthens HeartSciences Ahead Planned Merger
Positive
Aug 19, 2026
On August 12, 2026, Fortitude Mining Holdings invested approximately $1.0 million in HeartSciences through a private placement, purchasing 411,522 shares of common stock at $2.43 per share, a 22% premium to the market price on the purchase date. T...
M&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
HeartSciences Completes Private Placement to Support Merger
Positive
Aug 18, 2026
On August 12, 2026, HeartSciences Inc. completed a $1.0 million private placement with Fortitude Mining Holdings Inc., issuing 411,522 common shares at $2.43 per share, based on a 30‑day volume‑weighted average price. The transaction l...
Delistings and Listing ChangesFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
HeartSciences Receives Nasdaq Notice on Equity Noncompliance
Negative
Aug 7, 2026
On August 4, 2026, HeartSciences Inc. disclosed that it had received a notice from Nasdaq stating the company was out of compliance with the Nasdaq Capital Market’s minimum stockholders’ equity requirement, after reporting equity of $2...
M&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
HeartSciences Amends Merger Agreement With Fortitude Mining
Neutral
Jul 27, 2026
On July 27, 2026, HeartSciences Inc. amended its previously announced June 23, 2026 merger agreement with Fortitude Mining Holdings, Inc., Fortitude Mining HoldCo, LLC and Cordis Acquisition, LLC. The amendment replaces the form of LLC agreement t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.