HeartSciences — Fiscal First Quarter 2027 Earnings Summary

Financial Performance

• Reported no meaningful revenue for FQ1 2027.
• Loss from operations was $2.9 million, compared to $1.9 million in FQ1 2026.
• Net loss for FQ1 2027 was $3.2 million, compared to $2.1 million in FQ1 2026.
• Shareholders' deficit stood at $2.0 million as of July 31, 2026.
• Loss from operations included approximately $0.5 million in increased legal and professional costs related to the Proposed Transaction, approximately $0.5 million in non-cash share-based compensation following the passing of Mark Hilz, and a $0.3 million inventory reserve.

Guidance and Future Outlook

• Expects to close the proposed business combination with Fortitude in Q4 calendar 2026, subject to customary closing conditions including shareholder approval.
• Anticipates significant commercial progress in the year ahead for the MyoVista Insights platform.
• Does not currently intend to commit significant additional resources to the commercialization of the MyoVista wavECG device due to the emergence of cloud-based AI-ECG algorithms and an uncertain timeline for FDA approval.
• A probable timeline to commercialization for the MyoVista wavECG device cannot currently be established.

Business Segments and Product Lines

• Commercial efforts are concentrated on MyoVista Insights, a device-agnostic ECG management and AI orchestration platform.
• Signed first US commercial agreements following the full launch of MyoVista Insights.
• Selected as the AI-ECG delivery platform for a clinical program at a major European reference center, anticipated to extend into a larger multicenter project.
• Released MyoVista Insights version 1.4 with further upgrades since launch.
• Made the first third-party FDA-cleared AI-ECG algorithm available through the AI-ECG algorithm marketplace.
• Launched a new corporate website focused on MyoVista Insights functionality and the AI-ECG marketplace.
• Expanded patent portfolio to more than 45 granted patents, including a European patent for ECG-based assessment of diastolic function.
• FDA 510(k) submission for the MyoVista wavECG device remains under review; the submission excludes the AI algorithm necessary for commercialization.
• Recorded a $0.3 million reserve against the remaining carrying value of inventory related to the MyoVista wavECG device.

Market and Competitive Landscape

• The AI-ECG marketplace is attracting developers who recognize the platform as a route to deliver models directly into clinical workflows at scale.
• Feedback from clinicians and health systems regarding MyoVista Insights has been consistently positive.
• Zcash is viewed as among the best-performing large capitalization digital assets over the past year, attracting growing institutional interest.

Risks and Challenges

• Risk that the Proposed Transaction may not be completed on the anticipated timeline or at all, including failure to satisfy closing conditions or obtain shareholder approval.
• Risks related to the integration of HeartSciences and Fortitude and the management of a newly public company.
• Volatility in the price of Zcash and other cryptocurrencies.
• Significant legal, commercial, regulatory, and technical uncertainty regarding digital assets generally.
• Uncertainty regarding the commercialization of MyoVista Insights, including adoption rates and conversion of agreements into revenue.
• Uncertainty regarding the timing and outcome of the pending FDA 510(k) submission for the MyoVista wavECG device and the recoverability of related inventory.
• Risks related to market, macroeconomic, or other conditions affecting either HeartSciences or Fortitude.

Management Commentary and Tone

• CEO Andrew Simpson described the period as one of "significant change" and stated the transaction represents a "significant opportunity for shareholders."
• Management believes MyoVista Insights offers a "best-in-class, cloud-native, vendor- and device-agnostic ECG management platform."
• Management noted the response from clinicians has been "excellent" and priorities are focused on growing revenue, building relationships with key reference centers, and expanding the algorithm marketplace.
• Management expects the combination with Fortitude to give shareholders exposure to a meaningful participant in the Zcash ecosystem.

Other Key Points

• Proposed business combination with Fortitude Mining Holdings, Inc., announced in June 2026, continues to progress.
• Fortitude executed a purchase agreement for 9,000 Z15 Pro miners, representing approximately 7.5 Gsol/s of Zcash mining capacity.
• Fortitude energized its 12 MW facility in Grand Island, Nebraska, and acquired a 12.5 MW facility in Prosser, Nebraska.
• In August 2026, Fortitude subscribed for approximately $1.0 million of HeartSciences' common stock; the exchange ratio was not adjusted.
• Since period end, HeartSciences raised gross proceeds of approximately $1.0 million from Fortitude and net proceeds of approximately $1.2 million via its at-the-market facility.
• HeartSciences exchanged $200,000 of principal under an existing promissory note for shares of its common stock.
• The exchange ratio under the merger agreement was not adjusted for the Fortitude subscription, at-the-market sales, or the promissory note exchange.
• Fortitude is currently wholly-owned by Digital Currency Group, Inc. (DCG).