HeartSciences Inc. reported financial results for its fiscal first quarter ended July 31, 2026 (FQ1 2027), noting no meaningful revenue for the period. The company recorded a loss from operations of $2.9 million, an increase from the $1.9 million loss reported in the prior year period. This year-over-year increase was driven by approximately $0.5 million in legal and professional costs related to the proposed merger, $0.5 million in non-cash share-based compensation, and a $0.3 million inventory reserve associated with its wavECG device. Consequently, the net loss for FQ1 2027 was $3.2 million, compared to a net loss of $2.1 million in FQ1 2026. As of July 31, 2026, the company reported a shareholders' deficit of $2.0 million.
In the three months following the fiscal quarter end, HeartSciences raised gross proceeds of approximately $1.0 million from a sale of common stock to Fortitude Mining Holdings, Inc. The company also raised net proceeds of approximately $1.2 million through its at-the-market facility and exchanged $200,000 of principal under an existing promissory note for shares of common stock. The exchange ratio under the merger agreement with Fortitude was not adjusted as a result of these issuances.
HeartSciences is advancing a proposed business combination with Fortitude, a vertically-integrated digital asset mining platform. The company expects the transaction to close in the fourth quarter of calendar 2026, subject to customary closing conditions, including shareholder approval. Fortitude is a significant participant in the Zcash ecosystem and has executed a purchase agreement for 9,000 Z15 Pro miners, representing approximately 7.5 Gsol/s of mining capacity. In August 2026, Fortitude subscribed for approximately $1.0 million of HeartSciences' common stock.
Commercial efforts for HeartSciences remain concentrated on its MyoVista Insights platform. The company signed its first U.S. commercial agreements following the platform's full launch. Additionally, the platform was selected as the ECG management and AI-ECG delivery platform for a clinical program at a major European reference center. The company noted that the FDA 510(k) submission for the MyoVista wavECG device remains under review. Management stated that the submission does not include the AI algorithm necessary for commercialization, and the company has recorded a reserve of $0.3 million against the remaining carrying value of related inventory. Management does not currently intend to commit significant additional resources to the commercialization of the device.
