HeartSciences Inc. (HSCS) reported fiscal first-quarter 2027 financial results and a business update, highlighting continued commercial progress for its MyoVista Insights platform and advancement of its proposed business combination with Fortitude Mining Holdings.
The proposed transaction, announced in June 2026, remains on track for completion in Q4 2026, subject to customary closing conditions, including approval by HeartSciences shareholders.
Since the transaction was announced, Fortitude has signed an agreement to purchase 9,000 Z15 Pro miners, representing approximately 7.5 Gsol/s of Zcash mining capacity, energized a 12 MW facility in Grand Island, Nebraska, and completed a 12.5 MW facility in Prosser, Nebraska.
In August 2026, Fortitude also invested approximately $1.0 million in HeartSciences common stock.
The investment did not result in an adjustment to the merger exchange ratio or additional shares being issued to Fortitude at closing.
MyoVista Insights Gains Commercial Momentum
HeartSciences is concentrating its commercial efforts on MyoVista Insights, a device-agnostic, cloud-native ECG management and AI orchestration platform designed to work with hospitals' existing ECG equipment.
The company has signed its first U.S. commercial agreements following the platform's full launch.
MyoVista Insights is now at version 1.4 and includes the first third-party FDA-cleared AI-ECG algorithm available through its AI-ECG marketplace.
The platform was also selected as the ECG management and AI-ECG delivery platform for a clinical program at a major European reference center, with the project expected to potentially expand into a larger multicenter program.
HeartSciences has continued expanding its intellectual property portfolio, including the grant of a European patent covering ECG-based assessment of diastolic function.
The company's portfolio now includes more than 45 granted patents.
MyoVista wavECG Device Development
The FDA 510(k) submission for the MyoVista wavECG device remains under review.
However, HeartSciences said the submission does not include the AI algorithm required for commercialization.
The company expects that commercialization would require significant additional research, regulatory and commercial investment.
The company also said the emergence of cloud-based AI-ECG algorithms has reduced the commercial rationale for a proprietary device with embedded algorithms.
As a result, HeartSciences recorded a $0.3 million reserve against the remaining carrying value of related inventory and does not currently intend to commit significant additional resources to commercialization of the device.
Fiscal First Quarter 2027 Financial Results
HeartSciences reported no meaningful revenue for FQ1 2027.
Loss from operations increased to approximately $2.9 million, compared with $1.9 million in FQ1 2026.
The increase included approximately $0.5 million in legal and professional costs related to the proposed Fortitude transaction, approximately $0.5 million in non-cash share-based compensation, and the $0.3 million inventory reserve.
The company's net loss increased to approximately $3.2 million, compared with $2.1 million in the prior-year quarter.
As of July 31, 2026, HeartSciences had a shareholders' deficit of approximately $2.0 million.
Post-Quarter Financing
Since the end of the quarter, HeartSciences raised approximately $1.0 million in gross proceeds from the sale of common stock to Fortitude.
The company also generated approximately $1.2 million in net proceeds through its at-the-market facility and exchanged $200,000 of principal under an existing promissory note for common shares.
None of these issuances resulted in an adjustment to the merger exchange ratio.
Fortitude TransactionThe proposed combination with Fortitude would transform HeartSciences' business profile by adding exposure to Fortitude's vertically integrated digital asset mining operations anchored in the Zcash ecosystem.
Fortitude currently operates mining infrastructure and data center facilities and is expanding its Zcash mining capacity through additional miner purchases and facility development.
Next Steps
HeartSciences expects the proposed Fortitude business combination to close in Q4 2026, subject to shareholder approval and other customary conditions.
In parallel, the company plans to focus resources on expanding MyoVista Insights, growing U.S. revenue, strengthening relationships with reference centers and expanding the AI-ECG marketplace.
HSCS has traded between $1.63 and $4.35 over the past year. Currently, the stock is trading at $3.32, down 6.07%.
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Business News
September 11, 2026 16:26 ET Consumer prices data was the main news on the economic front in the U.S. this week. In Europe, the latest interest rate decision from the European Central Bank was the focus along with the revised second quarter economic growth data for the euro area. In Asia, the monthly foreign trade data from China drew attention.