Helius Medical Technologies, Inc. Announces the Establishment of a Wholly Owned Brain Computer Interface (“BCI”) Technology Private Subsidiary
Rhea-AI Summary
Helius Medical Technologies (NASDAQ:HSDT) has announced the establishment of Revelation Neuro, a wholly-owned private subsidiary focused on developing non-implantable AI-powered Brain Computer Interface (BCI) technology. The subsidiary will leverage Helius' existing IP portfolio and extensive data warehouse for AI algorithm development.
The new venture aims to create a personalized neurorehabilitation solution using translingual stimulation without implantation. Revelation Neuro will utilize Helius' dataset of over 5 years of movement dysfunction clinical evidence from 400+ subjects as the foundation for AI algorithm development. The technology focuses initially on motor function rehabilitation, with potential future applications in cognitive deficit, mood, and behavior disorders.
While Helius will assign its newly developed IP and license existing IP to Revelation Neuro, the company does not plan to invest significant additional capital. Instead, the subsidiary is expected to be financed through third-party outside sources, building upon the $70 million already invested in neuromodulation technology development.
Positive
- Creation of new subsidiary to expand into AI-powered BCI technology market
- Leveraging existing $70M investment and extensive clinical data
- No significant additional capital required from HSDT
- Potential expansion into multiple neurological treatment areas
Negative
- Dependence on third-party financing for subsidiary development
- No immediate revenue generation potential mentioned
- Unproven AI technology effectiveness
Insights
Helius Medical Technologies' formation of Revelation Neuro represents a calculated strategic expansion into the rapidly developing Brain Computer Interface (BCI) space. Unlike many competitors pursuing invasive implants, Helius is leveraging its existing non-invasive translingual stimulation technology—already demonstrated in clinical settings—and combining it with AI algorithms to create a potentially differentiated BCI approach.
What's financially significant is Helius's capital-efficient approach. The company intends to transfer IP to Revelation Neuro while specifically noting they "do not intend to invest significant additional capital" but instead expect third-party financing. This structure potentially allows Helius to maintain 100% ownership while minimizing additional capital requirements—essentially creating an optionality vehicle for future growth without immediate dilution to existing shareholders.
The subsidiary formation leverages Helius's substantial prior investments (over
While the BCI field is competitive and regulatory pathways remain complex, this subsidiary structure provides Helius a segmented approach to pursue higher-risk/reward technology development while maintaining its core business focus on balance and gait therapies.
--Revelation Neuro, Inc. is focused on advancing development of a Non-Implantable Artificial Intelligence (“AI”) Powered BCI Technology--
--Helius’ existing IP portfolio and extensive data warehouse provides a solid foundation for AI algorithm development--
--Helius to Present at the 37th Annual ROTH Conference on Monday, March 17 at 12:00pm PT--
NEWTOWN, Pa., March 13, 2025 (GLOBE NEWSWIRE) -- Helius Medical Technologies, Inc. (Nasdaq:HSDT) (“Helius” or the “Company”), a neurotech company focused on delivering a novel therapeutic neuromodulation approach for improving balance and gait deficits and reducing the risk of falling, today announced the establishment of Revelation Neuro, Inc. (“Revelation Neuro”), its wholly-owned private subsidiary focused on the development of non-implantable AI powered BCI technology.
“We are thrilled to establish Revelation Neuro to pursue the development of a new gold standard of care for personalized neurorehabilitation using a non-implantable AI powered BCI combining our newly developed intellectual property (“IP”) with Helius’ existing IP. Our technology relies on its proven ability to modulate known target brain processes and trigger therapeutic responses by using translingual stimulation without risky implantation. We believe Revelation Neuro’s BCI technology will be a unique and less invasive therapeutic option,” said Dane Andreeff, Helius President and Chief Executive Officer.
“Revelation Neuro is focused on maximizing the positive effect of neuromodulation by applying AI to optimize individual response to translingual stimulation,” Andreeff continued. “Helius’ extensive dataset, comprised of more than 5 years of movement dysfunction clinical evidence from over 400 subjects, will serve as the initial foundation for AI algorithm development to which new patient data will then be added to optimize the algorithm and enable a precise and personalized approach to motor function rehabilitation. Revolutionary BCI-enabled improvement in functional rehabilitation is the initial focus of Revelation Neuro’s efforts, with the potential in the future to address neurological conditions including cognitive deficit, mood and behavior disorders.”
Revelation Neuro is a private subsidiary
Roth Conference Participation
The Company plans to present at the upcoming 37th Annual Roth Conference in Dana Point, California. Helius management, Dane Andreeff, President and Chief Executive Officer, and Jeff Mathiesen, Chief Financial Officer, is scheduled to present on Monday, March 17, 2025 at 12:00pm PT. A live and recorded webcast of the presentation will be available on the “Events” page of the Company’s investor website at ir.heliusmedical.com.
About Helius Medical Technologies, Inc.
Helius Medical Technologies is a leading neurotech company in the medical device field focused on neurologic deficits using orally applied technology platform that amplifies the brain’s ability to engage physiologic compensatory mechanisms and promote neuroplasticity, improving the lives of people dealing with neurologic diseases. The Company’s first commercial product is the Portable Neuromodulation Stimulator (PoNS®). For more information about PoNS or Helius Medical Technologies, visit www.heliusmedical.com.
Cautionary Disclaimer Statement
Certain statements in this news release are not based on historical facts and constitute forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws. All statements other than statements of historical fact included in this news release are forward-looking statements that involve risks and uncertainties. Forward-looking statements are often identified by terms such as “believe,” “expect,” “continue,” “will,” “goal,” “aim” and similar expressions. Such forward-looking statements include, among others, statements that BCI technology will be a unique and less invasive therapeutic option, that it will lead to improvements in rehabilitation of motor and cognitive functions, statements related to the ability to expedite development, and statements related to Helius’s intended capitalization of Revelation Neuro.
There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those expressed or implied by such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include uncertainties associated with the Company’s capital requirements to achieve its business objectives, market conditions and availability of funds from third parties to finance Revelation Neuro, Inc., the Company’s ability to find additional sources of funding, manufacturing, labor shortage and supply chain risks, including risks related to manufacturing delays, the Company’s ability to obtain adequate Medicare insurance coverage and to obtain a reimbursement code, the Company’s ability to continue to build internal commercial infrastructure, secure state distribution licenses, market awareness of the PoNS device, future clinical trials and the clinical development process, the product development process and the FDA regulatory submission review and approval process, other development activities, ongoing government regulation, and other risks detailed from time to time in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and its other filings with the United States Securities and Exchange Commission and the Canadian securities regulators, which can be obtained from either at www.sec.gov or www.sedar.com.
The reader is cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements except to the extent required by law.
Investor Relations Contact
Philip Trip Taylor
Gilmartin Group
investorrelations@heliusmedical.com
FAQ
What is the purpose of Helius Medical's new subsidiary Revelation Neuro?
How much clinical data does HSDT have for AI algorithm development?
How will HSDT finance Revelation Neuro's operations?
What conditions does Revelation Neuro's BCI technology aim to treat?
