Helius Update

For those of you that took my advice to buy shares of this company, I apologize for the wild ride down to these levels. Despite today’s good news, I feel that the company with its excessive burn rate will continue to struggle as the run out of money in 2020.

What we got right is the PoNS device works, what we missed is that the management of this company has made very poor decisions, starting with the original application to the FDA that was denied. I’ll keep this short, and feel free to ask any questions.

Last April when the company got denied its FDA application, the company continued to burn about $2,000,000 a month with excessively high salaries, and other high expense that they deemed necessary. Despite all the pleadings to lower the burn, the company kept paying CEO and CFO annual salaries of $1,200,000 and $800,000. This company’s management and board did very little to protect the $15,000,000 they had on the balance sheet, and actually thought that Canada would yield a significant amount of revenue from the PoNS to offset this tremendous burn. Again they were wrong, as reported last quarter they did only $150,000 in revenue. So Canada is actually costing the company millions to be there. And will continue to be a cash negative in my view.

If they had just decided to focus on the resubmission of the PoNS application to the FDA in 2020 they would not be in this position now. But they have made such poor decision culminating in selling over 4,000,000 shares for $0.35 that yielded only approximately $1,700,000 which is only one months burn. CRAZY decision, but its what I expect from these guys now.

I would love to tell you that everything has been fixed and you should buy shares at this level with this but I cannot. Not until I see evidence that this company has the ability to raise capital without destroying the value of the common share holder, while they continue to receive such absurd salaries when its not necessary. This company should not even be a public company right now, but it was necessary for the $100,000,000+ they have raised to date to get where they are.

So what’s next for Helius? Unless they guys get serious about getting there burn rate down, I cannot endorse them. In 2020 they will need to raise more capital, I am not sure the common shareholder will own any of Helius when they have to sell their soul to the next investor in this company.

Here is today’s news release

Independent Research Published Show Positive Results on Translingual Neurostimulation Plus Physical Therapy With Statistically Significant Improvement in Balance and Gait Scores and the Outcomes Were Sustained for 12 Weeks After Discontinuing Treatment

NEWTOWN, Pa., Dec. 19, 2019 (GLOBE NEWSWIRE) — Helius Medical Technologies, Inc. (Nasdaq:HSDT) (TSX:HSM) (the “Company”), a neurotech company focused on neurological wellness, announced today that the results from independent research conducted at the University of Wisconsin-Madison on translingual neurostimulation for the treatment of chronic symptoms due to mild-to moderate traumatic brain injury (“mmTBI”) have been published in the December 2019 issue of theArchives of Rehabilitation Research and Clinical Translation. For more information on the trial and its results, see the published journal article

The newly published results from the double-blind randomized clinical trial which paired translingual neurostimulation using the Portable Neuromodulation Stimulator (PoNS™) device with therapeutic activities, showed significantly improved balance and gait scores over the 14-week treatment period and the outcomes were sustained for 12 weeks after discontinuing the treatment. 

“Traumatic brain injuries are rising steadily in North America and whether these injuries are mild or moderate, the effects can last a lifetime,” said Philippe Deschamps, Chief Executive Officer of Helius Medical Technologies. “The results from this independent clinical trial provide clinical support for the PoNS Treatment™ as an effective treatment option for patients suffering from the effects of mmTBI and we are excited to have the validation of the data in a peer reviewed publication.”

The trial evaluated 43 participants who had experienced an mmTBI at least one year prior to receiving the PoNS Treatment and had seen little progress or had plateaued in their recovery with physical therapy. Researchers found that approximately 74 percent of the participants who completed the 14 weeks of PoNS Treatment experienced significant improvements in their balance. Patients also showed meaningful improvements in their gait and walking endurance.

Exploratory endpoints, such as headache burden and sleep quality, were also observed as part of the trial. While further analysis and research is needed, there was an indication of improvement in these exploratory endpoints. The demonstrated improvements in balance and gait, coupled with potential improvements in the exploratory endpoints may allow treated individuals to experience a better quality of life.

PoNS Treatment is exclusively offered by authorized clinics, with multiple locations across Canada. To learn more about PoNS Treatment and to book a 15-minute consultation with an authorized PoNS Treatment clinic, visit ponstreatment.ca.

About Helius Medical Technologies, Inc.

Helius Medical Technologies is a neurotech company focused on neurological wellness.  The Company’s purpose is to develop, license and acquire unique and non-invasive platform technologies that amplify the brain’s ability to heal itself. The Company’s first commercial product is the Portable Neuromodulation Stimulator (PoNS™). For more information, visit www.heliusmedical.com.  

About the PoNS™ Device and PoNS Treatment™ 

The PoNS is an authorized class II, non-implantable, medical device in Canada intended for use as a short term treatment (14 weeks) of chronic balance deficit due to mild-to-moderate traumatic brain injury (mmTBI) and is to be used in conjunction with physical therapy. The PoNS is an investigational medical device in the United States, the European Union (“EU”), and Australia (“AUS”), and it is currently under review for clearance by the AUS Therapeutic Goods Administration. PoNS Treatment is currently not commercially available in the United States, the European Union or Australia.

4 Comments on “Helius Update

  1. Thanks, Randy. Wish we had known a bit more about that executive team (and their bloated comp) before the stock dropped after the FDA. No worries though, what I lost, I had made on the 1st stock tip that got acquired by Equifax, so technically even overall.

    I did have one question for you. Do you do much investing in private companies? We are currently fundraising for my golf push cart company Walker Trolleys. We are creating a premium trolley that marries classic and modern design with a target towards the high-end walking resorts and golfers looking for a cooler designed push cart. I’d be happy to send you a 1-pager, if you might have some interest? Don’t think you’d remember, but we met in SF in 2017 the year you and Jason both won the City (I won my flight that year in the finals).

    Let me know.

    Thanks, Brad

    Brad Payne CEO, Walker Trolleys LLC 404.398.9991 http://www.WalkerTrolleys.com

    • Hi Brad,
      Sorry for the delayed reply and Happy New Year. I wish you luck in your new venture, it sounds interesting. I no longer invest or raise capital for early stage companies. In my experience the golf deals have been especially tough, but does not mean you won’t have success. All the best- Randy

  2. Congratulations on being named 2019 Northern California Senior Golfer of the Year.

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