RDG_HSDT_081414_1298

7/25/2019 RDG_HSDT_081414_1298

1/16

MARKET DATAShare Price:Market Cap:52wk Range:Ave. Volume:Basic S/O:Fully Diluted S/O:Float:Institutional %:Insider %:

FINANCIAL DATA(mrq)

Cash (pre-financing):ST Debt:LT Debt:Book Value (pre-financing):EBITDAS (ttm):CFFO (ttm):

PLEASE SEE PAGES 15 & 16 FOR IMPORTANT DISCLOSURES

Business SummaryHelius is focused on the development and regulatory approval of its non-invasive neurostimulation device called PoNS, which has been shownto improve balance and gait in roughly 2,000 patients to date sufferingfrom brain damage and neurodegeneration. The Company is nearingclinical trials for balance disorders in TBI patients in partnership with theU.S. Army, and for the treatment of MS. All operations are donethrough its wholly owned subsidiary NeuroHabilitation Corp (NHC).

Key Points After a comprehensive review of alternate technologies, the U.S. Ar-

my entered into a CRADA with Helius whereby it will fund and over-see clinical trials for TBI, help in obtaining FDA approval, buy units forits own use and help Helius enter the VA healthcare system.

The U.S. Army estimates roughly 30,000 active duty soldiers have aTBI every year, 20% of which are ideal candidates for PoNS, whichshould result in recurring orders of 6,000 units per year, or roughly$15 million per year, not counting replacement tongue pieces.

An estimated 600,000 retired military members in the VA healthcaresystem have TBIs, of which roughly 20% are chronically disabled as aresult. This creates a target addressable market of 120,000 units, or$300 million in total revenue.

Based on clinical results to date and the average annual cost of treat-ing MS patients between $10,000 and $50,000 per year, the $2,500PoNS unit could become a viable treatment option for the 400,000MS patients in the U.S. and 2.0 million abroad.

Management believes the bulk of the units will be used for long dura-

tions to help patients improve and maintain quality of life. The tonguesensor must be replaced every 14 weeks, which should create a largerecurring revenue stream over time.

Besides TBI and MS, the Company believes the PoNS could havebeneficial applications to patients of many other neurological diseas-es, including Huntingtons, Spina Bifida, Parkinsons, Alzheimers andepilepsy, among others.

Between the cash on hand and the CRADA money, the Companyshould be able to reach FDA approval without additional raises, andmay not need to finance the start of commercial operations if itsC$1.00 warrants are exercised early.

Valuation

We are initiating coverage of Helius Medical Technologies with a Buyrating and $3.00 target price. We believe the Company is uniquely po-sitioned to become the de facto treatment for a number of diseases anddisorders that currently do not have suitable therapies. The U.S. ArmyCRADA and ability to move rapidly to FDA approval for different indica-tions as a Class II device could quickly ramp earnings. Our target priceis based on a P/E multiple of 30 times our fully taxed fiscal 2019 dilutedEPS estimate of $0.18 per share, discounted four years at 15%. Wenote there is upside to our estimates as we have built a model withmore conservative growth and margin assumptions as compared towhat management is guiding.

Helius Medical Technologies, Inc.OTC: HSDT | TSX: HSM

INITIATING COVERAGE

BUY, $3.00

William Gregozeski, [email protected]+1 414 435 1110

2.30145.13 M

2.12 - 2.3614,000

63.10 M75.42 M27.80 M

0%56%

0.00 M0.15 M0.00 M

(0.27) M(0.56) M(0.35) M

August 14, 2014

Greenridge Global Equity Research

USD 2014A 2015e 2016e 2017e

Revenue (in Millions)

Jun 0.00 0.00 0.00 0.00

Sep 0.00 0.00 0.00 2.39

Dec 0.00 0.00 0.00 2.61

Mar 0.00 0.00 0.00 3.74

REV 0.00 0.00 0.00 8.74

Jun (0.02) (0.03) (0.03)

Sep (0.03) (0.03) (0.01)

Dec (0.05) (0.03) (0.01)Mar (0.02) (0.03) 0.00

EPS (0.68) (0.13) (0.12) (0.04)

PE N/A N/A N/A N/A

EPS (Diluted)

P/S N/A N/A N/A 16.61

Auditor: Davidson & Company LLP

7/25/2019 RDG_HSDT_081414_1298

2/16

Greenridge Global 2

COMPANY OVERVIEW

Helius Medical Technologies, Inc. is a specialty medical device company focused on the developmentand regulatory approval of its non-invasive neurostimulation device called PoNS. In roughly 2,000 pa-tients to date, PoNS has been shown to improve balance and gait in patients suffering from brain dam-age and neurodegeneration. From this work, it has secured a CRADA with the U.S. Army, who is com-mitted to fund and oversee the regulatory work needed to have the PoNS receive FDA approval for bal-ance symptoms of TBI. The Company is also nearing a clinical trial for MS. All operations at Helius aredone through its wholly owned subsidiary NeuroHabilitation Corp (NHC).

What is Neurohabilitation?Neurohabilitation is a method of treatment for serious injuries, such as severe spinal injuries and braindamage, using the nervous system to enact changes. The changes are made thanks to neuroplasticity,the ability of the brain to reprogram certain learned behaviors, and usually done through physical, occu-pational and cognitive therapy. In the 1960s, Dr. Paul Bach-y-Rita of the University of Wisconsin-Madison began experimenting with the use of electrical stimulation in the tongue to help with balanceproblems due to vestibular system damage. This work, which ultimately was done in partnership withDr. Kaczmarek and Dr. Tyler, resulted in the creation of the BrainPort (owned by Wicab, Inc), which is atongue stimulation-based device to help blind people see. With this as a background, Dr. Kaczmarekand Mr. Tyler, along with Dr. Yuri Danilov, all of the Tactile Communication and Rehabilitation Laborato-ry (TCNL) at the University of Wisconsin-Madison, developed the PoNS device.

PoNS 2.2 & PoNS 4.0The Portable Neuromodulation Stimulator, or PoNS, aims to be the first non-invasive method of deliver-ing neurostimulation through the oral cavity, specifically via the tongue for balance-related problems.The PoNS unit is an electrical pulse generator that delivers controlled electrical stimulation to two cranialnerves via the tongue. Pulses are sent through a tongue piece, that sits on the top front portion of thetongue, via 143 gold-plated electrodes. The unit is power by a rechargeable battery and is user con-trolled via the On, Off, and Intensity Up and Down buttons. Patients who use the product describe thepulse sensation on the tongue as being similar to drinking a carbonated beverage.

The current unit, PoNS 2.2 is a single unit, whereby the controller is mounted to the tongue piece, andheld in place by the patient. To date, all testing has been with the PoNS 2.2. The Company is in theprocess of finalizing PoNS 4.0, which will feature a more ergonomic dedicated headset with the tonguepiece mounted and a separate controller, a replaceable tongue piece, data logging, therapeutic infor-

mation and treatment reminders. All clinical trials going forward will use PoNS 4.0.

Helius Medical Technologies, Inc. Initial Report - 08/14/14

PoNS 2.2

PoNS 4.0

7/25/2019 RDG_HSDT_081414_1298

3/16

Greenridge Global 3

The device is used with a physical therapist for intensive treatment twice a day for the first two weeks,followed by 12 weeks of twice-daily treatment at home before returning for a follow-up for re-evaluation,more rigorous exercises and to have the device reset for another 14 weeks. Management estimatesroughly 2,000 patients over the last seven years have been treated worldwide (~200 in the U.S. and~1,500 in the rest of the world) with the PoNS product with no adverse events reported. The Companyestimates it will sell PoNS 4.0 for $2,500 and each tongue stimulator for $100, which would need re-placement every 14 weeks. The Company plans to submit an application for an ICD 10 reimbursementcode for Medicare and Medicaid, as well as seek coverage from private insurance providers.

Intellectual PropertyAll current and future intellectual property is owned by ANR, who has granted exclusive worldwide rightsto NHC in exchange for a 4% royalty on all PoNS-related revenues. ANR has filed U.S. Patent Applica-tion 12/348301 and Provisional Patent Application 61/019,061, which together include one product claimand 22 method claims, which cover a device in the form of a mouth piece that non-invasively deliversneurostimulation to the brain stem via the trigeminal nerve. The Companys legal team (Proskauer) isalso working to significantly expand the patent coverage through additional claims, with a heavy focuson method claims (for example using PoNS while walking on a treadmill). Upon approval of the originalpatent it will file through the PCT for coverage in the treaty countries.

Relationship with U.S. ArmyOn February 1, 2013, NHC and ANR signed a collaborative research and development agreement(CRADA) with the U.S. Army Medical Material Agency (USAMMA) and the U.S. Army Medical MaterialDevelopment Activity (USAMMDA). Under the CRADA, the U.S. Army is required to fund ($18.5 mil-lion), manage and provide regulatory oversight of the clinical trials required to secure 510(k) approval

COMPANY OVERVIEW (continued)


Source: Helius

7/25/2019 RDG_HSDT_081414_1298

4/16

Greenridge Global 4

from the FDA for the treatment of balance and disorders related to TBI. Once approved, NHC will beresponsible for commercializing the product. If NHC is unable to commercialize the product within twoyears from the expiration of the CRADA it will transfer the regulatory rights and a non-exclusive use ofthe patents to the Army.

The interest in the PoNS product by the Army stems from the high incidence of TBI in soldiers, both fromcombat and training exercises, and the relative lack of treatment available for those who end up with adisability because of it. The Army hired Booz Allen, an independent consulting firm, which concludedthere were no better alternatives to treat chronically disabled active duty TBI patients than with PoNS.The Army estimates roughly 30,000 active duty soldiers suffer from new TBI-related effects each yearand over 600,000 retired soldiers have a TBI diagnosis, of which 15% to 30% suffer from chronic disabil- orders. After approval, it will contribute $20 million to help the Company with trials to treat other TBI-related injuries that effect its population, including Tinnitus, PTSD, sleep disorders and pain (headache)relief. While it has not given a firm indication of orders, the Army has said it would supply PoNS units toall soldiers who were in need.

Clinical TrialsThe Company, through its partners at UW-Madison, has treated roughly 2,000 patients, completed one

formal study with PoNS and is in the midst of two pilots that will act as predecessors to the FDA Regis-trational Trials for TBI and MS. Based on information provided to the FDA, the FDA has suggested thePoNS can be submitted as a Class 2, non-significant risk device, which shortens the pathway to approv-al. As it stands now, management believes it should receive FDA approval for use in treating balance inTBI patients and treating symptoms of MS by 2017.

TBI Investigational StudyFour moderate TBI patients with balance disorders were treated withPoNS 2.2 (no placebo PoNS) for just five days at the lab at UW-Madison. As seen in the graphicbelow all four showed clinically significant improvements, with the greatest improvements coming tothe patients with greatest impairment.



Source: Helius

7/25/2019 RDG_HSDT_081414_1298

5/16

Greenridge Global 5

MS Gait Investigational Study20 MS patients with gait dysfunction were treated with PoNS 2.2 (10active PoNS and 10 placebo PoNS) and physical therapy for 14 weeks, the first two weeks of whichwas done in the lab at UW-Madison and the last 12 weeks done at home. The study ultimatelyfound that PoNS used in conjunction with targeted, intensive physical therapy could reduce symp-

toms of gait dysfunction and improve quality of life in MS patients as seen below.

TBI Pilot StudyThis study, being done at UW-Madison with PoNS 2.2, will be run similar to what isexpected for the TBI Registrational Trial and treat 44 mild to moderate TBI patients (22 active PoNSand 22 placebo PoNS) for a total of 26 weeks, starting June 1. Like the Registrational Trial, the first home for additional data gathering purposes. The study will look for improvements in balance andgait.

MS Pilot StudyThis study, being done at the Montreal Neurological Institute at McGill Universitywith PoNS 2.2, will be run similar to what is expected for the TBI Registrational Trial and treat mild tomoderate TBI patients for a total of 26 weeks, starting June 1. Like the Registrational Trial, the first

home for additional data gathering purposes. TBI Registrational Trial-Treating Balance DisorderThis study will be funded, estimated at $18.5

million, and run by the U.S. Army and treat 120 patients (90 with active PoNS 4.0 and 30 with place-bo PoNS) for a total of 14 weeks, 2 at the center and 12 at home. The study, which will measurebalance and gait improvements, will be run at a private facility in Montreal and VA Hospitals in Or-lando and Portland. Management estimates it will have the data from the trials in Q1:16, and file forFDA approval in mid-2016.

MS Registrational TrialThis study will be done at the Montreal Neurological Institute at McGill Uni-versity, treating 60 MS patients (30 active PoNS and 30 placebo PoNS) for 2 weeks in the lab and



Source: Helius

7/25/2019 RDG_HSDT_081414_1298

6/16

Greenridge Global 6

12 weeks at home with PoNS 4.0. Management expects the study to start in January 2015 andhave data in Q2:16 and file for FDA approval. The Company will fund this study, which is expectedto cost CDN 2.0 million.

Parkinsons StudyA private donor has funded a PoNS study at Baylor University via TCNL for

Parkinsons Disease. Helius is not involved in this study in any way, but will have access to the dataonce completed, which it can use in determining whether to pursue FDA approval for PoNS for treat-ment of Parkinsons.

Device Design & ManufacturingPoNS 2.2 is currently a hand-built product made in low volumes. The Company has subcontracted thedesign of version 4.0 and manufacturing to Providence, RI-based Ximedica. Version 4.0 is expected tobe completed by the end of 2014 under a $3.5 million contract. Management intends to internalize man-ufacturing at the point when large quantities of the units are being sold. NHC estimates Ximedica will beable to produce the PoNS for $150 per device, decreasing as volumes ramp significantly, and eachtongue stimulator for $25 per unit.

Physical Therapy Center PartnersThe Company will also begin partnering with physical therapy centers (PTC), likely national chains, to

become NHC-accredited in the use of PoNS. These PTCs will be critical in expanding the use of thePoNS units while providing additional revenue opportunities for the PTCs via increased patient visits.Management expects the PTCs will be able to use existing physical therapy reimbursement codes.



CORPORATE & CAPITAL HISTORY

January 22, 2013Incorporated as a Delaware company. May 30, 2014Raised $7.62 million in gross proceeds ($7.16 million, net) from the sale of 15.24

million shares at $0.50. Each share included 0.5 two-year warrants exercisable at $1.00. June 13, 2014Acquired 100% of Nuerohabilitation Corporation in exchange for 35,300,083

shares1.

June 23, 2014Began trading on the Canadian Securities Exchange under the symbol HSM. July 3, 2014Began trading on the grey market in the U.S. under the symbol HSDT.

CAP TABLE

(as of July 31, 2014)

Shares Outstanding 63,104,789

Warrants (C$1.00 exercise) 8,444,400

Options (all exercisable at C$1.00 except 100,000 at C$2.52) 3,870,000

Fully Diluted Shares 75,419,189

1The PoNS device was developed at TCNL at UW-Madison by Dr. Mitch Tyler, Dr. Yuri Danilov, and Dr.Kurt Kaczmarek who together formed Advanced NeuroRehabilitation LLC (ANR) to commercialize thePoNS product. In January 2013, ANR granted NeuroHabilitation Corp (NHC) the exclusive worldwiderights to ANRs technology in exchange for 50% equity of NHC and a 4% royalty of all revenue related tothe sale and service of the PoNS device. NHC completed a reverse merger with a publicly traded shellon June 13, 2014 through the issuance of 35,300,083 shares.

7/25/2019 RDG_HSDT_081414_1298

7/16

Greenridge Global 7

MARKET OVERVIEW

Traumatic Brain Injury (TBI) MarketThe initial focus of the Company is for patients suffering from TBI. Symptoms of TBI vary on the severityof the brain injury, but can include sleep disorders, loss of balance, seizures and speech impairment.Treatment is generally limited to physical therapy, occupational therapy and speech therapy as it cur-rently consists primarily of exercises designed to cope with the physical shortcomings the TBI. Accord-ing to the CDC, the average annual spending on TBI-related care was $76.5 billion, with average lifetimehealthcare costs for TBI patients at $85,000 to over $3.0 million. By contrast the total market for neu-rostimulation devices was nearly $2.0 billion in 2012, although Grand View Research believes this figurewill grow to $8.8 billion by 2020.

Based on its collaboration with the U.S. Army, the Army estimates there are 30,000 new active duty per-sonnel who suffer from TBIs each year and over 600,000 retired military personnel in the VA systemwith varying degrees of TBI. The Congressional Budget Office has estimated that it costs three to fivetimes more to treat a patient with TBI or PTSD in the VA system than a patient not suffering from either.Of the total active Army members and retired military personnel, management estimates 15% to 30% ling purposes we have assumed 20% of TBI patients suffer from chronic disability. Given the majority ofactive duty TBIs come from training exercises, we believe it is fair to expect the sales potential for theArmy will remain stable over time. The number of candidates in the VA system should fall slightly over

time as there are fewer entering the system from the Army, having already been treated, but still havenew cases from other branches. Future growth potential lays with these other military branches, as wellas other military units in foreign countries. The Canadian Armed Forces appears to be the first target,having already had discussions with the Company about PoNS.

Pending a successful launch through the Army and VA, the Company intends to launch the product tothe civilian market in the U.S. and Canada. The U.S. is the largest market for TBI care due to the rela-tively high level of patient awareness of the injury, with 5.3 million people living with lifelong disabilitiesfrom TBI and roughly 1.7 million non-military people sustaining a TBI each year. Of this, nearly 40% areunder the age of 5 thereby reducing the total annual TBI population to roughly 1.0 million patients peryear. While the bulk of TBIs occur due to accidents, a hot topic has been the increased occurrence fromparticipation in sports, especially in regards to the long-term health ramifications being uncovered fromthe NFL. This trend is larger in high school sports, where more than 33% of athletes have been found tohave multiple concussions (a type of TBI), despite less than half of football players reporting their con-cussions. Management has indicated that future civilian market expansion could happen in Europe, Ja-

pan, and the BRIC countries.

Multiple Sclerosis (MS) MarketWhile the Company has a partner in the U.S. Army for TBI, it is proceeding independently on developingthe PoNS market for MS. While there is no database for MS, it is estimated that there are roughly400,000 cases of MS in the U.S. and 2.0 million cases in the rest of the world, with Canada having oneof the highest prevalence in the world at nearly 3 per 1,000 people, or ten times the global norm. Man-agement believes that the PoNS could be useful in treating some of the symptoms of MS, that includebalance disorders and muscle weakness. Presently, there are no treatments available, which results inhealth providers helping patients manage the disease. Current management options include PT, OTand speech therapy, as well as psychosocial support and medications. As a result, MS is the secondcostliest chronic condition to treat/manage at roughly $10,000 to $50,000 per patient per year. Giventhe relative low cost of PoNS and potential for symptom improvement, we expect this will become anattractive option for patients, healthcare providers and insurance companies. It should then turn into a

large source of recurring revenue from replacement tongue pieces, given this patient population wouldlikely use the unit for a longer period as compared to the TBI patients.

CompetitionCompetition to PoNS includes a variety of neurostimulation devices, ranging from non-invasive to im-plantable devices. Implantable devices are a Class 3 product and make up the bulk of neurostimulationproducts, focusing primarily on deep brain stimulation (Parkinsons, depression, and chronic pain), spi-nal cord stimulation (chronic back pain) and vagus nerve stimulation (epilepsy). Companies competingin the implantable market include majors, like Medtronic [NYSE: MDT] and Boston Scientific [NYSE:BSX], and smaller players, like Cyberonics [Nasdaq: CYBX] and NeuroPace.


7/25/2019 RDG_HSDT_081414_1298

8/16

Greenridge Global 8

MARKET OVERVIEW (continued)

The competitive landscape for non-invasive Class 2 neurostimulation devices is much smaller, consist-ing, to our knowledge, of Cefaly, ElectroCore, Helius, and NeuroSigma. We note that in June 2014 theFDA changed the status of non-invasive neurostimulation devices from Class 3 to the shorter Class 2designation. Each company focuses on the trigeminal nerve, with the exception of ElectroCore, whichfocuses on the vagus nerve via its non-approved neck-based device to treat migraine headaches andexercise-induced asthma. Both Cefaly and NeuroSigma offer devices placed on the forehead, com-pared to the tongue-based PoNS device. Cefaly is the only in the group that has received FDA approval(for migraines) and is now targeting chronic insomnia and chronic pain indications. NeuroSigmas pipe-line is far more robust having CE Mark and Canadian approval for epilepsy and depression indications(it is working towards FDA approval) and in trials on PTSD and ADHD. There appears to be little currentoverlap between Helius and these companies, none of whom have the backing of a group as strategicas the U.S. Army, which we believe to be a difference maker in terms of its ability to fund trials, purchaseunits for its own use and market the benefits of the product to third parties, like the VA hospital system.We assume that all of these competing products were likely in the Booz Allen report done for the Army available to parties outside of the U.S. Army, not even Helius.


7/25/2019 RDG_HSDT_081414_1298

9/16

Greenridge Global 9

MANAGEMENT & DIRECTORS

Age Position(s)Compensation(2014 Salary) Shares Options

Philippe Deschamps 51 CEO, Director $ 300,000 16,035,0261 600,000

Mr. Deschamps was appointed President, CEO and a Director on June 13, 2014 after serving in thehealthcare industry for more than 27 years. Prior to joining Helius, Mr. Deschamps held variousroles at Bristol Myers Squibb [NYSE: BMY], including Director of Neuroscience Marketing, and wasCEO of GSW Worldwide. Mr. Deschamps also serves as CEO of MediMedia Health, a marketingservices company.

Amanda Tseng 31 CFO, Director $ 150,000 0 20,000

Ms. Tseng became CFO and was named a Director on June 13, 2014. Ms. Tsengs part-time en-gagement to Helius is via a contract with Baron Global Financial Canada, where she serves as As-sistant Manager of Corporate Finance.

Savio Chiu 31 Director $ 0 0 20,000

Mr. Chui became a Director on June 13, 2014 and currently serves as CFO of Confederation Miner-als [TSX: CFM]. Previous experience includes serving as Senior Manager of Corporate Finance of

Baron Global Financial Canada, CFO of Golden Fame Resources [TSX: PFE] and CFO of CassiusVentures [TSX: CZ].

Yuri Danilov 57 Director $ 0 16,035,0262 133,333

Dr. Danilov became a Director on June 13, 2014 and is the Research Director at TCNL at UW-Madison, a co-founder of ANR, and a Senior Scientist of Biomedical Engineering at UW-Madison.Dr. Danilov previously served as Research Director for Wicab.

Mitch Tyler 61 Director $ 0 16,035,0262 133,333

Mr. Tyler became a Director on June 13, 2014 and is the Clinical Director of Education/Training forNHC and a co-founder of ANR. Mr. Tyler is working towards completion of his Ph.D. a UW-Madisonand previously served as the Principal Investigator for Wicab.


1Mr. Deschamps is a co-owner of MPJ Healthcare, LLC, which owns 16,035,026 shares.2Dr. Danilov and Mr. Tyler are co-owners of Advanced NeuroRehabilitaion, LLC (ANR), whichowns 16,035,026 shares.

7/25/2019 RDG_HSDT_081414_1298

10/16

Greenridge Global 10

RISKS

Reliance on US ArmyThe Company is relying on the U.S. Army to perform and fund clinical trials on its behalf, obtain FDAapproval shortly thereafter, begin buying units for its own use and helping Helius begin sales to the VAhealthcare system. Any degradation in the relationship with the Army could have significant adverseeffects on the Company.

Need for Growth CapitalWith no current income sources and various R&D and clinical trials planned the Company may need toraise additional funds to meet operating needs, which could result in dilution to current shareholders.Based on our model it may be possible to meet current needs without additional financings if the war-rants from the latest financing are exercised early.

Acceptance of Neuromodulation TherapyHelius aims to be the first FDA-approved non-invasive device and therapy for the treatment of balanceand disorders related to trauma brain injury. Being first to market, it may take longer to gain acceptanceof the therapy by care providers or receive insurance backing.

FDA Approval TimelineOur estimates are based on PoNS receiving FDA approval as a Class II device in mid-2016. Any delayin this approval would push out our estimates and could result in additional costs to Helius.

Insurance ReimbursementThe Companys sales will be dependent, in part, on the ability of PoNS to receive insurance reimburse-ment.

Reduced Filing RequirementsHelius is an emerging growth company under the JOBS Act of 2012, which allows it to follow fewer pub-lic company reporting requirements.

Limited Operating HistoryThe Company was incorporated in January 2013 and has had no revenues. To date, Helius has raisedfunds through equity sales to cover current and anticipated operating needs.

Concentrated Equity Ownership56% of the Companys stock is held by the founders of NHC and ANR, who currently hold the majority ofthe Board seats, making these parties able to exert control over the future of Helius.

Illiquid StockHelius stock trades less than $50,000 per day on average, which may make it difficult to acquire largepositions.

We are initiating coverage of Helius Medical Technologies with a Buy rating and $3.00 target price. We

believe the Company is uniquely positioned to become the de facto treatment for a number of diseasesand disorders that currently do not have suitable therapies. The U.S. Army CRADA and ability to moverapidly to FDA approval for different indications as a Class II device could quickly ramp earnings. Ourtarget price is based on a P/E multiple of 30 times our fully taxed fiscal 2019 diluted EPS estimate of$0.18 per share, discounted four years at 15%. We note there is upside to our estimates as we havebuilt a model with more conservative growth and margin assumptions as compared to what manage-ment is guiding.

VALUATION


7/25/2019 RDG_HSDT_081414_1298

11/16

7/25/2019 RDG_HSDT_081414_1298

12/16


HISTORIC INCOME STATEMENT


(in thousands of USD) 2013 2014

Revenue - -

COGS - -

Gross Profit - -

SG&A 4,268 894

Research & Development 4,250 172

Acquisition Costs - 300

Operating Income (8,518) (1,366)

EBITDAS (18) (559)

Interest Income, Net - (1)

Net Income Before Taxes (8,518) (1,367)

Income Taxes - -

Net Income After Taxes (8,518) (1,367)

Basic EPS (4.26) (0.68)Basic S/O 2,000 2,000

Diluted EPS (4.26) (0.68)

Diluted S/O 2,000 2,000

7/25/2019 RDG_HSDT_081414_1298

13/16


HISTORIC BALANCE SHEET



Cash - 16

Accounts Receivable - -

Inventories - -

Prepaid Expenses - 300

Total Current Assets - 316

Total Assets - 316

Accounts Payable & Accrued Liabilities 6 216

Short Term Loan 2 -

Convertible Debt - 368

Total Liabilities 8 584

Common Stock 0 -

Paid-In Capital 8,510 9,317

Accumulated Deficit (8,518) (9,585)

Stockholders Equity (8) (268)

Equity & Liabilities - 316

Shares Outstanding 2,000 2,000

7/25/2019 RDG_HSDT_081414_1298

14/16


HISTORIC STATEMENT OF CASH FLOWS



Net Income (8,518) (1,067)

Accounts Receivable - -

Inventories - -

Prepaid Expenses - -

Accrued Interest - 1

Stock-Based Consulting Expense - 807

Stock-Based R&D 4,250 -

Stock-Based Shares Issued for Services 4,250 -

Prepaid Expenses - (300)

Accounts Payable & Accrued Liabilities 6 210

Short Term Loan 2 (2)

Cash From Operating Activities (10) (351)

Cash From Investing Activities - -

Proceeds From Convertible Debt - 367

Proceeds From Share Issuance 10 -

Cash From Financing Activities 10 367

Net Change in Cash - 16

Cash, Beginning - -

Cash, Ending - 16

7/25/2019 RDG_HSDT_081414_1298

15/16


DISCLOSURES

Distribution of Ratings

Explanation of Ratings

BUY: Describes undervalued stocks we expect to provide a total return (capital appreciation +yield) of 15% or more in the next twelve month period.

HOLD: Describes fully valued stocks we expect to provide a total return (capital appreciation +yield) of plus or minus 15% in the next twelve month period.

SELL: Describes overvalued stocks we expect to provide a total negative return (capital depre-

ciation + yield) of 15% or more in the next twelve month period.NO RATING: Describes stocks that have their investment rating and/or target price temporarily re-moved for fundamental or compliance-based reasons.

Analyst Certification

I, William Gregozeski, CFA, certify that all of the views expressed in this research report accurately re-flect my personal views about the subject security and subject company. I also certify that no part of mycompensation was, is, or will be, directly or indirectly, related to the specific recommendations or viewsexpressed in this research report.

Other Disclosures

1. Greenridge Global makes a market in the security of the subject company.2. The analyst serves as an officer, director, or advisory board member of the subject company.3. The analyst or a member of the analysts household has a financial interest in the securities of the

subject company, including, but not limited to a long position, short position, rights, warrants, futures,or options.

4. Greenridge Global or an affiliate of Greenridge Global has managed or co-managed a public offeringof the security of the subject company in the last 12 months.

5. Greenridge Global or an affiliate of Greenridge Global has received compensation for investmentbanking services from the subject company in the last 12 months.

6. Greenridge Global expects to receive or intends to seek compensation for investment banking ser-

vices from the subject company in the next three months.7. Greenridge Global or an affiliate of Greenridge Global beneficially own 1% or more of the common

stock of the subject company as calculated in accordance with Section 13(d) of the Securities Ex-change Act of 1934.

8. The subject company is, or during the past 12 months was, a client of Greenridge Global, which pro-vided non-investment banking, securities-related services to, and received compensation from, thesubject company for such services.

9. An affiliate of Greenridge Global received compensation from the subject company for products orservices other than investment baking services during the past 2 months.

I.B. last 12 months

Rating Count Percent Count Percent

BUY 8 89% 0 0%

HOLD 1 11% 0 0%

SELL 0 0% 0 0%

NO RATING 0 0% 0 0%

Company DisclosuresHelius Medical Technologies, Inc. N/A


7/25/2019 RDG_HSDT_081414_1298

16/16


DISCLOSURES (continued)

Other Disclosures

This report has been prepared by Greenridge Global LLC, an unregistered US-based financial servicesfirm, employing appropriate expertise and in the belief that it is fair and not misleading. The informationupon which this material is based was obtained from sources believed to be reliable, but has not been

independently verified, therefore, we do not guarantee its accuracy. Any opinion or estimates expressedin this report constitute our best judgment as of the date of the report and are subject to change withoutnotice. Greenridge Global seeks to update its research as appropriate, but various regulations may pre-vent Greenridge Global from doing so. This report was prepared solely for informational purposes forGreenridges institutional clients and does not constitute a personal recommendation, solicitation or offerto buy or sell any security, or take into account the particular investment objectives, financial situations,or needs of individual clients. The securities described herein may not be qualified for purchase in alljurisdictions or be suitable for all investors. Each investor should consider whether any advice regardingsecurities mentioned in this report is suitable for their particular circumstances and, if appropriate, seekprofessional advice, including tax advice. Additional and supporting information is available upon re-quest.

Rating History

Greenridge Globals research reports are disseminated and available electronically, and in some cases,printed form. Electronic research is simultaneously available to all clients. This report or any portionherein may not be reprinted, sold or redistributed without the written consent of Greenridge Global LLC.For information on how to be added to Greenridges research distribution list please contact:

Michael Delaney William Gregozeski, CFA+1 708 337 1007 +1 414 435 1110

[email protected] [email protected]

Greenridge Global LLC10 S. Riverside Plaza

Suite 875Chicago, IL 60606 USA

www.greenridgeglobal.com

Rating and Target Price History for Helius Medical Technologies (OTC: HSDT) as of 08/14/14

08/14/14B, $3.00

source: Big Charts


Documents

RDG_HSDT_081414_1298