HeartSciences Files Audited Fortitude Financials and Pro Forma Merger Details, Revealing $86.8M Revenue and $35.5M Combined Loss

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HeartSciences filed audited Fortitude financials and pro forma merger details, showing Fortitude's $86.8M revenue, $10.5M net loss, and a combined pro forma loss of $35.5M. The filing reveals Fortitude's asset base, recent equipment deals, and a $26M credit facility, providing the first comprehensive financial picture of the pending all-stock merger.

check_boxKey Events · M&A and Partnerships · HSCS

• Fortitude Financials Revealed

  Fortitude generated $86.8M in revenue and a $10.5M net loss for the twelve months ended March 31, 2026, with Q1 2026 revenue of $19.2M and a $4.6M loss. Cash stood at $8.9M, digital assets at $1.9M, and property/equipment at $35.5M as of March 31, 2026.

• Pro Forma Combined Loss of $35.5M

  The unaudited pro forma combined statement shows a $35.5M net loss, with $33.4M attributable to the noncontrolling interest, resulting in a $2.0M loss for Class A shareholders. The combined entity would have $86.6M in total assets and $70.0M in equity.

• Fortitude's Capital Commitments and Credit Facility

  Fortitude entered into a $31.5M equipment purchase agreement (with $12.6M paid) and a $26M credit facility with parent DCG bearing 11% interest, maturing June 2028. It also acquired mining assets in Nebraska for $6.25M.

• HeartSciences' Going Concern and Listing Risk

  HeartSciences' recent 10-K disclosed a going concern warning, material weaknesses, and stockholders' equity of just $0.2M, putting its Nasdaq listing at risk. The merger is critical for survival.

auto_awesomeAnalysis · HSCS · Industrial Applications And Services

This amendment delivers the first granular look at Fortitude Mining's financials and the combined entity's pro forma results. For the twelve months ended March 31, 2026, Fortitude generated $86.8 million in revenue but posted a $10.5 million net loss, with Q1 2026 revenue of $19.2 million and a $4.6 million loss. The pro forma combined company shows a $35.5 million net loss, of which $33.4 million is attributable to the noncontrolling interest, leaving a $2.0 million loss for Class A shareholders. Fortitude's balance sheet reveals $9.9 million in cash, $3.4 million in digital assets, and $39.6 million in property and equipment, but also a deferred tax liability of $4.2 million and a going concern warning from HeartSciences' recent 10-K. The filing also discloses Fortitude's $31.5 million equipment purchase commitment, a $26 million credit facility with its parent, and a subsequent $6.25 million acquisition of mining assets. These details are critical for assessing the merger's value and risks, especially given HeartSciences' precarious financial position with just $0.2 million in equity and a Nasdaq listing threat.