 NEWTOWN, Pa., Aug. 12, 2020 GLOBE NEWSWIRE -- Helius Medical Technologies, Inc. Nasdaq:HSDT TSX:HSM Helius or the Company, a neurotech company focused on neurological wellness, today reported financial results for the quarter ended June 30, 2020. Second Quarter and Recent Business Updates On April 30, 2020, the Company announced that its registrational clinical trial, TBI-001, was published on April 29, 2020 in Neuromodulation: Technology at the Neural Interface. The TBI-001 trial found that PoNS TreatmentTM provided significant improvement in balance in patients with a chronic balance deficit following a mild-to-moderate traumatic brain injury mmTBI. On May 12, 2020, the Company announced that it has received Breakthrough Designation for its PoNSTM device as a potential treatment for gait deficit due to symptoms of Multiple Sclerosis MS, to be used as an adjunct to a supervised therapeutic exercise program. On July 14, 2020, the Company announced the dismissal of a putative shareholder class action lawsuit in the Southern District of New York. On August 6, 2020, the Company announced that it has submitted a request to the U.S. Food and Drug Administration FDA for de novo classification and clearance of the Portable Neuromodulation Stimulator PoNSTM device and reported preliminary financial results for the second quarter and six months ended June 30, 2020.Second Quarter 2020 Financial Summary Revenue of 0.1 million, compared to revenue of 0.5 million in second quarter of 2019. Operating loss of 3.7 million, compared to operating loss of 5.8 million in second quarter of 2019. Net loss of 3.4 million, compared to net loss of 0.2 million in second quarter of 2019. As of June 30, 2020, the Company had cash of 5.3 million, compared to 5.5 million at December 31, 2019. The Company had no debt outstanding at June 30, 2020. Net cash provided by financing activities during the three months ended June 30, 2020 was 4.1 million.Helius is excited by the considerable progress we have made on our U.S. regulatory strategy, following our strategic decision in the first quarter to prioritize an Multiple Sclerosis MS indication as the regulatory pathway to pursue our first U.S. regulatory clearance, said Philippe Deschamps, Chief Executive Officer of Helius. After obtaining Breakthrough Device Designation in May, our clinical and regulatory team continued to work diligently during the second quarter, with the goal of submitting a request for de novo classification and clearance for an MS indication in the second half of 2020. The submission of our request for de novo classification and clearance which we announced on August 6th is the culmination of their collective effort and success, as well as an important step forward on the path to making our PoNS Treatment available to the estimated 1 million MS patients in the U.S.Mr. Deschamps continued: From a commercial standpoint, during the second quarter we, like many companies in the medical device industry, continued to be impacted by the unprecedented level of disruption created by the COVID-19 pandemic. Most notably, PoNS authorized clinics in Canada continued to suspend in-clinic patient treatments and remained effectively closed in April to comply with government restrictions enacted to slow the spread of the virus. We have been pleased to see clinics reopen in late-May and June, albeit under federal and provincial requirements limiting their capacity to 50 of normal services. As a result of these COVID-related mandates, along with clinic policies designed to ensure appropriate social distancing, clinics in Canada continue to operate at significantly reduced productivity. As such, we believe we remain in the very early stages of recovery, and are unlikely to see material improvements in business trends until these federal and provincial requirements are lifted. Despite the challenging operating environment, our Canadian commercial team has remained focused on supporting our existing clinic customers, and has made important progress in expanding our network of authorized clinics in recent months.Mr. Deschamps concluded: In spite of the ongoing challenges presented by COVID-19, Im incredibly proud of the commitment and focus that our team has shown with regard to executing against our regulatory and commercial objectives. Most importantly, we remain convinced that our PoNS Treatment represents a truly novel technology, with the potential to improve the lives of patients suffering from the effects of MS, TBI, and other chronic conditions. Looking ahead, we remain committed to pursuing our regulatory and commercial strategies efficiently and effectively to bring our novel PoNS technology into the hands of as many patients as possible.Second Quarter 2020 Financial ResultsTotal revenue for the second quarter of 2020 was 0.1 million, compared to 0.5 million in the second quarter of 2019. Product sales represented approximately 95 of total revenue in the second quarter of 2020 compared to 91 of total revenue in the second quarter of 2019. Product sales both periods were generated through sales of the PoNS device pursuant to supply agreements with nineteen PoNS Authorized clinic locations in Canada. License and fee revenue represented 5 of sales in the second quarter of 2020, compared to 9 of sales in the second quarter of 2019.Gross profit for the second quarter of 2020 was 0.1 million, compared to gross profit of 0.3 million in the second quarter of 2019. Operating expenses for the second quarter of 2020 decreased 2.3 million, or 38 year-over-year, to 3.8 million, compared to 6.1 million in the second quarter of 2019.Operating loss for the second quarter of 2020 decreased 2.1 million, or 36 year-over-year, to 3.7 million, compared to 5.8 million in the second quarter of 2019.Total other income for the second quarter of 2020 was 0.4 million, compared to 5.6 million in the second quarter of 2019.Net loss for the second quarter of 2020 was 3.4 million, or 0.08 per basic and diluted common share, compared to a net loss of 0.2 million, or 0.01 per basic and diluted common share, in the second quarter of 2019. Weighted average shares used to compute basic and diluted net loss per common share were 40.6 million and 25.9 million for the second quarters of 2020 and 2019, respectively. Six Months Ended June 30, 2020 Financial ResultsTotal revenue for the six months ended June 30, 2020 was 0.3 million, compared to 1.2 million in the prior year period. Product sales represented 94 of total revenue for the six months ended June 30, 2020, compared to 96 of total revenue in the prior year period. Product sales in both periods were generated through sales of the PoNS device pursuant to supply agreements with nineteen PoNS Authorized clinic locations in Canada. License and fee revenue represented 6 of total revenue for the six months ended June 30, 2020, compared to 4 of total revenue in the prior year period.Gross profit for the six months June 30, 2020 was 0.2 million, compared to gross profit of 0.7 million in the prior year period. Operating expenses for the six months ended June 30, 2020 decreased 5.5 million, or 41 year-over-year, to 7.9 million, compared to 13.4 million in the prior year period.Operating loss the six months ended June 30, 2020 decreased 4.9 million, or 39 year-over-year, to 7.7 million, compared to operating loss of 12.6 million in the prior year period.Total other expense for the six months ended June 30, 2020 was 0.4 million, compared to 13.8 million of other income in the prior year period.Net loss for the six months ended June 30, 2020 was 8.1 million, or 0.22 per basic and diluted common share, compared to net income of 1.1 million, or 0.04 per basic and diluted common share, in the prior year period. Weighted average shares used to compute basic net income loss per share were 36.2 million and 25.9 million for the six months ended June 30, 2020 and 2019, respectively. Weighted average shares used to compute diluted net income loss per share were 36.2 million and 26.0 million for the six months ended June 30, 2020 and 2019, respectively.Net cash provided by financing activities during the six months ended June 30, 2020 was 6.7 million, of which 4.8 million consisted of net proceeds from the issuance of 8,138,808 shares of the Companys common stock at an average price of 0.62 per share in connection with the Companys At The Market Agreement ATM.As of June 30, 2020, the Company had cash of 5.3 million, compared to 5.5 million at December 31, 2019.Full Year 2020 OutlookOn May 7, 2020, the Company withdrew its previously announced full year 2020 outlook. The Company is currently unable to estimate the duration and impact of the COVID-19 pandemic on its financial and operating results for the full year 2020.Conference CallManagement will host a conference call at 5:00 p.m. Eastern Time on August 12, 2020 to discuss the results of the quarter and business outlook. Those who would like to participate may dial 877-407-2988 201-389-0923 for international callers and provide access code 13705949. A live webcast of the call will also be provided on the Events section of the Companys investor relations website at: those unable to participate, a replay of the call will be available for two weeks at 877-660-6853 201-612-7415 for international callers; access code 13705949. The webcast will be archived on the Events section of the Companys investor relations website.About Helius Medical Technologies, Inc.Helius Medical Technologies is a neurotech company focused on neurological wellness. 