<SEC-DOCUMENT>0001140361-23-027240.txt : 20230530
<SEC-HEADER>0001140361-23-027240.hdr.sgml : 20230530
<ACCEPTANCE-DATETIME>20230530161531
ACCESSION NUMBER:		0001140361-23-027240
CONFORMED SUBMISSION TYPE:	SD
PUBLIC DOCUMENT COUNT:		2
<RULE>
<RULE-NAME>13p-1
<ITEM>
<ITEM-NUMBER>1.01
<ITEM-PERIOD>20221231
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<ITEM>
<ITEM-NUMBER>1.02
<ITEM-PERIOD>20221231
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FILED AS OF DATE:		20230530
DATE AS OF CHANGE:		20230530

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HELIUS MEDICAL TECHNOLOGIES, INC.
		CENTRAL INDEX KEY:			0001610853
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
		IRS NUMBER:				364787690
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SD
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-38445
		FILM NUMBER:		23976574

	BUSINESS ADDRESS:	
		STREET 1:		642 NEWTOWN YARDLEY ROAD
		CITY:			NEWTOWN
		STATE:			PA
		ZIP:			18940
		BUSINESS PHONE:		215-944-6100

	MAIL ADDRESS:	
		STREET 1:		642 NEWTOWN YARDLEY ROAD
		CITY:			NEWTOWN
		STATE:			PA
		ZIP:			18940

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HELIUS MEDICAL TECHNOLOGIES, INC
		DATE OF NAME CHANGE:	20180517

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HELIUS MEDICAL TECHNOLOGIES, INC.
		DATE OF NAME CHANGE:	20140613
</SEC-HEADER>
<DOCUMENT>
<TYPE>SD
<SEQUENCE>1
<FILENAME>brhc20053575_sd.htm
<DESCRIPTION>SD
<TEXT>
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         Document created using Broadridge PROfile 23.5.1.5152
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    <div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-size: 14pt; font-weight: bold;">UNITED STATES</div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-size: 14pt; font-weight: bold;">SECURITIES AND EXCHANGE COMMISSION</div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-size: 12pt; font-weight: bold;">Washington, D.C. 20549</div>
      <div style="text-align: center; color: #000000; font-weight: bold;"><br>
      </div>
      <div>
        <hr noshade="noshade" align="center" style="height: 2px; width: 20%; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;">
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      <div style="text-align: center; color: rgb(0, 0, 0); font-size: 18pt; font-weight: bold;">FORM SD</div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-weight: bold;">Specialized Disclosure Report</div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-weight: bold;"><br>
      </div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-weight: bold;">
        <hr noshade="noshade" align="center" style="height: 2px; width: 20%; color: #000000; background-color: #000000; margin-left: auto; margin-right: auto; border: none;"></div>
      <div><br>
      </div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-size: 24pt; font-weight: bold;">Helius Medical Technologies, Inc.</div>
      <div style="text-align: center; color: rgb(0, 0, 0);">(Exact name of registrant as specified in its charter)</div>
      <div style="text-align: center; color: rgb(0, 0, 0);"> <br>
      </div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-weight: bold;">
        <hr noshade="noshade" align="center" style="height: 2px; width: 20%; color: #000000; background-color: #000000; margin-left: auto; margin-right: auto; border: none;"></div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-weight: bold;"><br>
      </div>
      <table cellspacing="0" cellpadding="0" border="0" id="z93363e9ab31c46549b33715b6b75b1a9" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: #000000;">

          <tr>
            <td style="width: 33%; vertical-align: top;">
              <div style="text-align: center; color: rgb(0, 0, 0);">Delaware</div>
            </td>
            <td style="width: 34%; vertical-align: top;">
              <div style="text-align: center; color: rgb(0, 0, 0);">001-38445</div>
            </td>
            <td style="width: 33.33%; vertical-align: top;">
              <div style="text-align: center; color: rgb(0, 0, 0);">36-4787690</div>
            </td>
          </tr>
          <tr>
            <td style="width: 33%; vertical-align: top;">
              <div style="text-align: center; color: rgb(0, 0, 0);">(State or other jurisdiction of incorporation)</div>
            </td>
            <td style="width: 34%; vertical-align: top;">
              <div style="text-align: center; color: rgb(0, 0, 0);">(Commission File Number)</div>
            </td>
            <td style="width: 33.33%; vertical-align: top;">
              <div style="text-align: center; color: rgb(0, 0, 0);">(I.R.S. Employer Identification No.)</div>
            </td>
          </tr>

      </table>
      <div><br>
      </div>
      <table cellspacing="0" cellpadding="0" border="0" id="z8ffeec3f50cd41a9829bc133503da3f8" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: #000000;">

          <tr>
            <td style="width: 49%; vertical-align: top;">
              <div style="text-align: center; color: rgb(0, 0, 0);">642 Newtown Yardley Road, Suite 100</div>
              <div style="text-align: center; color: rgb(0, 0, 0);">Newtown, PA</div>
              <div style="text-align: center; color: rgb(0, 0, 0);">(Address of principal executive offices)</div>
            </td>
            <td style="width: 2%; vertical-align: top;"><br>
            </td>
            <td style="width: 49%; vertical-align: top;">
              <div style="text-align: center; color: rgb(0, 0, 0);">18940</div>
              <div style="text-align: center; color: rgb(0, 0, 0);">(Zip Code)</div>
            </td>
          </tr>

      </table>
      <div><br>
      </div>
      <div style="text-align: center; color: rgb(0, 0, 0);">Dane C. Andreeff, President and Chief Executive Officer, (215) 944-6100</div>
      <div style="text-align: center; color: rgb(0, 0, 0);">(Name and telephone number, including area code, of the person to contact in connection with this report)</div>
      <div><br>
      </div>
      <div style="text-align: justify; text-indent: 36pt;">Check the appropriate box to indicate the rule pursuant to which this form is being filed, and provide the period to which the information in this form applies:</div>
      <div>&#160;</div>
      <div>
        <table cellspacing="0" cellpadding="0" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;" id="z9fb69d6a87564bd38b4b49ce9f6a88dd" class="DSPFListTable">

            <tr style="vertical-align: top;">
              <td style="vertical-align: top; width: 36pt;">&#9746;</td>
              <td style="align: left; vertical-align: top; width: auto;">
                <div style="text-align: justify; text-indent: -36pt; margin-left: 36pt;">Rule 13p-1 under the Securities Exchange Act (17 CFR 240.13p-1) for the reporting period from January 1 to December 31, 2022.</div>
              </td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
      <div>
        <hr align="center" style="border: none; border-bottom: 4px solid black; border-top: 1px solid black; height: 10px; color: #ffffff; background-color: #ffffff; text-align: center; margin-left: auto; margin-right: auto;"> </div>
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      <!--PROfilePageNumberReset%Num%2%%%-->
      <div style="text-align: justify; font-weight: bold;">Section 1 - Conflict Minerals Disclosure</div>
      <div>&#160;</div>
      <table cellspacing="0" cellpadding="0" id="z20ddfc76717845968d29a5b763da94c2" class="DSPFListTable" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

          <tr>
            <td style="width: 72pt; vertical-align: top; font-weight: bold;">Item 1.01</td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div style="font-weight: bold;">Conflict Minerals Disclosure and Report</div>
            </td>
          </tr>

      </table>
      <div>&#160;</div>
      <div style="text-align: justify;">This Form SD of Helius Medical Technologies, Inc. (the &#8220;Company&#8221;) is filed pursuant to Rule 13p-1 promulgated under the Securities Exchange Act <font style="color: rgb(0, 0, 0);">of 1934, as amended, for the
          reporting period January 1 to December 31, 2022.</font></div>
      <div>&#160;</div>
      <div style="text-align: justify;">A copy of the Company&#8217;s Conflict Minerals Report is filed as Exhibit 1.01 to this Form SD and is publicly available at:</div>
      <div>&#160;</div>
      <div style="text-align: justify; color: rgb(0, 0, 0);"><u>https://heliusmedical.com/index.php/investor-relations/sec-filings.</u></div>
      <div>&#160;</div>
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          <tr>
            <td style="width: 72pt; vertical-align: top; font-weight: bold;">Item 1.02</td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div style="font-weight: bold;">Exhibit</div>
            </td>
          </tr>

      </table>
      <div>&#160;</div>
      <div style="text-align: justify;">A Conflict Minerals Report required by Item 1.01 covering the period January 1 to December 31, 2022 has been filed as <a href="brhc20053575_ex1-01.htm">Exhibit 1.01</a> to this Form SD.</div>
      <div>&#160;</div>
      <table cellspacing="0" cellpadding="0" id="z7b73cddee83040b185fe79d846d1c12b" class="DSPFListTable" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

          <tr>
            <td style="width: 72pt; vertical-align: top; font-weight: bold;">Item 2.01</td>
            <td style="width: auto; vertical-align: top; text-align: justify;">
              <div style="font-weight: bold;">Resource Extraction Issuer Disclosure and Report</div>
            </td>
          </tr>

      </table>
      <div>&#160;</div>
      <div style="text-align: justify;">Not applicable.</div>
      <div style="text-align: justify;"> <br>
      </div>
      <div style="text-align: justify;">
        <table cellspacing="0" cellpadding="0" class="DSPFListTable" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

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              <td style="width: 72pt; vertical-align: top; font-weight: bold;">Item 3.01</td>
              <td style="width: auto; vertical-align: top; text-align: justify;"><font style="font-weight: bold;">Exhibits.</font></td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
      <div>(d) Exhibits<br>
      </div>
      <div> <br>
      </div>
      <div>
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              <td style="width: 72pt; vertical-align: top; font-weight: bold;">Exhibit No.<br>
              </td>
              <td style="width: auto; vertical-align: top; text-align: justify;"><font style="font-weight: bold;"> Description</font><br>
              </td>
            </tr>

        </table>
        <div><br>
        </div>
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                <td style="width: 72pt; vertical-align: top; font-weight: normal;">1.01</td>
                <td style="width: auto; vertical-align: top; text-align: justify;">
                  <div style="font-weight: normal;">Helius Medical Technologies, Inc. Conflict Minerals Report as required by Items </div>
                  <div style="font-weight: normal;">1.01 and 1.02 of Form SD.<br>
                  </div>
                </td>
              </tr>

          </table>
        </div>
        <div><br>
        </div>
      </div>
      <div class="BRPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div style="text-align: center;" class="BRPFPageNumberArea"><font style="font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;" class="BRPFPageNumber">2</font></div>
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      </div>
      <div style="text-align: center; font-weight: bold;">SIGNATURES</div>
      <div>&#160;</div>
      <div style="text-align: justify;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the <font style="color: rgb(0, 0, 0);">duly authorized undersigned.</font></div>
      <div>&#160;</div>
      <table cellspacing="0" cellpadding="0" border="0" id="z7abdde4d005c4213a588466701d947d0" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: #000000;">

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            <td style="width: 50%; vertical-align: top;">
              <div style="text-align: justify; color: rgb(0, 0, 0);">Date: May 30, 2023</div>
            </td>
            <td style="vertical-align: top;" colspan="2">
              <div style="text-align: justify; color: rgb(0, 0, 0); font-weight: bold;">HELIUS MEDICAL TECHNOLOGIES, INC</div>
            </td>
          </tr>
          <tr>
            <td style="width: 50%; vertical-align: top;">&#160;</td>
            <td style="width: 3%; vertical-align: top;">&#160;</td>
            <td style="width: 47%; vertical-align: top;">&#160;</td>
          </tr>
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            <td style="width: 50%; vertical-align: top;">&#160;</td>
            <td style="width: 3%; vertical-align: top;">
              <div style="text-align: justify; color: rgb(0, 0, 0);">By:</div>
            </td>
            <td style="width: 47%; vertical-align: top; border-bottom: 2px solid black;">
              <div style="text-align: justify; color: rgb(0, 0, 0);">/s/ Jeffrey S. Mathiesen</div>
            </td>
          </tr>
          <tr>
            <td style="width: 50%; vertical-align: top;">&#160;</td>
            <td style="width: 3%; vertical-align: top;">&#160;</td>
            <td style="width: 47%; vertical-align: top;">
              <div style="text-align: justify; color: rgb(0, 0, 0);">Jeffrey S. Mathiesen</div>
            </td>
          </tr>
          <tr>
            <td style="width: 50%; vertical-align: top;">&#160;</td>
            <td style="width: 3%; vertical-align: top;">&#160;</td>
            <td style="width: 47%; vertical-align: top;">
              <div style="color: rgb(0, 0, 0);">Chief Financial Officer and Treasurer</div>
            </td>
          </tr>

      </table>
      <div><br>
      </div>
      <div><br>
      </div>
      <div>
        <div style="text-align: center;" class="BRPFPageNumberArea"><font style="font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;" class="BRPFPageNumber">3</font></div>
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<DOCUMENT>
<TYPE>EX-1.01
<SEQUENCE>2
<FILENAME>brhc20053575_ex1-01.htm
<DESCRIPTION>EXHIBIT 1.01
<TEXT>
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      <div style="text-align: right; color: rgb(0, 0, 0); font-weight: bold;">Exhibit 1.01</div>
      <div><br>
      </div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-weight: bold;">Helius Medical Technologies, Inc.</div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-weight: bold;">Conflict Minerals Report</div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-weight: bold;">For Calendar Year 2022</div>
      <div><br>
      </div>
      <div style="text-align: justify;">Helius Medical Technologies, Inc. (&#8220;Helius,&#8221; the &#8220;Company,&#8221; &#8220;we&#8221; and &#8220;our&#8221;) submits this Conflict Minerals Report for the period January 1 to December 31, 2022 pursuant to Rule 13p-1 under the Securities Exchange Act
        of 1934, as amended (the &#8220;Rule&#8221;). The Rule was adopted by the Securities and Exchange Commission (the &#8220;SEC&#8221;) to implement reporting and disclosure requirements related to conflict minerals as directed by the Dodd-Frank Wall Street Reform and
        Consumer Protection Act of 2010. The Rule imposes certain reporting obligations on SEC registrants whose manufactured products or products contracted to be manufactured contain conflict minerals which are necessary to the functionality or
        production of their products. Conflict Minerals are defined as cassiterite, columbite-tantalite, wolframite and gold, including their derivatives, which are limited to tin, tantalum and tungsten (collectively, &#8220;3TG&#8221;).</div>
      <div>&#160;</div>
      <div style="text-align: justify; font-weight: bold;"><u>Overview</u></div>
      <div>&#160;</div>
      <div style="text-align: justify; font-weight: bold;">Helius&#8217;s Business</div>
      <div>&#160;</div>
      <div style="text-align: justify;">We are a neurotech company in the medical device field focused on neurological deficits using non-implantable platform technologies that amplify the brain&#8217;s ability to compensate and promote neuroplasticity,
        improving the lives of people dealing with neurologic diseases. Our first product, known as the Portable Neuromodulation Stimulator (&#8220;PoNSTM&#8221;), is an innovative non-surgical medical device, inclusive of a controller and mouthpiece, which delivers
        electrical stimulation to the surface of the tongue to improve balance and gait. The PoNS device is indicated for use in the United States as a short-term treatment of gait deficit due to mild-to-moderate symptoms from multiple sclerosis (&#8220;MS&#8221;) and
        is to be used as an adjunct to a supervised therapeutic exercise program in patients 22 years of age and over by prescription only.</div>
      <div>&#160;</div>
      <div style="text-align: justify;">PoNS is also authorized for sale in Canada for three indications: (i) PoNS is authorized as a short-term treatment (14 weeks) of chronic balance deficit due to mild-to-moderate traumatic brain injury and is to be
        used in conjunction with physical therapy&#894; (ii) PoNS is authorized for use as a short term treatment (14 weeks) of gait deficit due to mild and moderate symptoms from MS and is to be used in conjunction with physical therapy; and (iii) for use as a
        short-term treatment (14 weeks) of gait deficit due to mild and moderate symptoms from stroke, to be used in conjunction with physical therapy. PoNS is also authorized for sale in Australia for short term use by healthcare professionals as an
        adjunct to a therapeutic exercise program to improve balance and gait.</div>
      <div>&#160;</div>
      <div style="text-align: justify;">The PoNS device has been manufactured by our contract manufacturing partner, a leading, international electronics manufacturer, who manufactured PoNS devices for engineering and design verification testing and for
        FDA submission as well as commercial devices for launch inventory for commercialization in the United States and Canada.</div>
      <div>&#160;</div>
      <div style="text-align: justify; font-weight: bold;">Helius&#8217;s Product Covered by this Report</div>
      <div>&#160;</div>
      <div style="text-align: justify;">The Company has determined that 3TG is necessary to the functionality or production of the PoNS device, including in the 143 gold-plated electrodes on the mouthpiece, which send mild electrical signals to the tongue.</div>
      <div>&#160;</div>
      <div style="text-align: justify;">Accordingly, the Company conducted in good faith a reasonable country of origin inquiry (&#8220;RCOI&#8221;) to determine whether any 3TG contained in the PoNS device originated in the Democratic Republic of the Congo, the
        Republic of the Congo, the Central African Republic, South Sudan, Uganda, Rwanda, Burundi, Tanzania, Zambia and Angola (together, the &#8220;Covered Countries&#8221;), or were from recycled or scrap sources.</div>
      <div>&#160;</div>
      <div style="text-align: justify; font-weight: bold;"><u>Reasonable Country of Origin Inquiry</u></div>
      <div>&#160;</div>
      <div style="text-align: justify; color: rgb(0, 0, 0);">We rely on our sole manufacturer to manufacture the PoNS device. Our sole manufacturer relies on suppliers who supply components and materials for multiple products it manufactures. We do not
        have direct relationships with any of these suppliers.</div>
      <div><br>
      </div>
      <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" class="BRPFPageBreakArea">
        <div style="page-break-after: always;" class="BRPFPageBreak">
          <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
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      <!--PROfilePageNumberReset%Num%2%%%-->
      <div style="text-align: justify;">Given our position in the supply chain as a &#8220;downstream&#8221; company, the Company has to rely on its sole manufacturer to conduct its own survey of its &#8220;upstream&#8221; supply chain in relation to the conflict minerals used in
        its products. This inquiry consisted of obtaining a written assurance from the Company&#8217;s sole manufacturer that it had performed in good faith its own RCOI. Accordingly, we requested and received from the manufacturer a completed Conflict Minerals
        Reporting Template (&#8220;CMRT&#8221;). The CMRT included results from our manufacturer&#8217;s own diligence process, in which the manufacturer conducted its own supply chain survey and collected CMRTs from its suppliers. However, our manufacturer&#8217;s CMRT covered
        all products manufactured by our supplier, both for the Company and for other customers, and our supplier confirmed, after we followed-up, that it was not able to respond to the CMRT with responses specific to us or the PoNS device.</div>
      <div>&#160;</div>
      <div style="text-align: justify; font-weight: bold;">Due Diligence Performed</div>
      <div>&#160;</div>
      <div style="text-align: justify; font-weight: bold;">Step 1: Establish Strong Company Management Systems</div>
      <div>&#160;</div>
      <div style="text-align: justify;">The Company uses the CMRT from the Responsible Minerals Initiative (RMI) to determine the source and chain of custody of 3TG in our supply chain. We reviewed the CMRT sent to us by our sole manufacturer, which was
        based on responses submitted to our sole manufacturer by its own suppliers.</div>
      <div>&#160;</div>
      <div style="text-align: justify; font-weight: bold;">Step 2: Identify and Assess Risk in the Supply Chain</div>
      <div>&#160;</div>
      <div style="text-align: justify; color: rgb(0, 0, 0);">We requested and received the CMRT received from our sole manufacturer in order to gather information on our supply chain, including whether any of the minerals that could potentially be
        classified as 3TG are contained in materials supplied to our manufacturer or came from recycled or scrap sources and whether those minerals originated from the Covered Countries.</div>
      <div><br>
      </div>
      <div style="text-align: justify;">We reviewed our sole manufacturer&#8217;s CMRT for completeness and consistency of answers. The CMRT we received from our manufacturer showed that the manufacturer received completed CMRT responses from less than 50% of
        the suppliers surveyed.</div>
      <div>&#160;</div>
      <div style="text-align: justify;">Because our manufacturer is only able to provide a CMRT that was company-wide and not specific to us or the PoNS device, the information we received reports 3TG data for all products manufactured by our sole
        manufacturer. Accordingly, we are not able to determine whether the smelters and refiners identified by our manufacturer actually processed the 3TG in the PoNS device. Given the large number of identified smelters and refiners, the relative size of
        our operations compared to our manufacturer and the limited number of PoNS devices we have contracted to manufacture to date, we believe that the smelter and refiner list provided is significantly over-inclusive and that we do not have sufficient
        information to reasonably identify smelters or refiners that processed the 3TG contained in the PoNS device. Accordingly, do not have enough information to fully assess risks in our supply chain.</div>
      <div>&#160;</div>
      <div style="text-align: justify; font-weight: bold;">Step 3: Design and Implement a Strategy to Respond to Identified Risks</div>
      <div>&#160;</div>
      <div style="text-align: justify;">Because we are unable to identify smelters and refiners that processed 3TG contained in the PoNS device and we do not have any direct supply relationships with the companies that supply to our contract manufacturer,
        our ability to respond to risks in our supply chain is limited.</div>
      <div>&#160;</div>
      <div style="text-align: justify; font-weight: bold;">Step 4: Carry out Independent Third-Party Audit of Supply Chain Due Diligence at Identified Points in the Supply Chain</div>
      <div>&#160;</div>
      <div style="text-align: justify;">Our manufacturer identified 233 unique smelters or refiners used that may have been used to process 3TG in the products it manufactures. For the reasons noted above, we expect that few of the 233 unique smelters or
        refiners identified by our manufacturer actually processed the 3TG in the PoNS device. If we contract to manufacture the PoNS device in the future, to the extent that smelters or refiners are identified to us and reasonably expected to be part of
        our supply chain, we plan to utilize and rely on information made available by the RMI concerning independent third-party audits of smelters and refiners to assess smelter and refiner due diligence and to determine whether the smelter or refiner is
        Responsible Minerals Assurance Process (RMAP) compliant.</div>
      <div>&#160;</div>
      <div style="text-align: justify; font-weight: bold;">Step 5: Report on Supply Chain Due Diligence</div>
      <div>&#160;</div>
      <div style="text-align: justify;">We filed this Form SD and Conflict Minerals Report with the SEC and made these documents available on our website at <font style="color: rgb(0, 0, 0);"><u>https://heliusmedical.com/index.php/investor-relations/sec-filings.</u></font></div>
      <div>&#160;</div>
      <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" class="BRPFPageBreakArea">
        <div class="BRPFPageNumberArea" style="text-align: center;"><font class="BRPFPageNumber" style="font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;">2</font></div>
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      </div>
      <div style="text-align: justify; font-weight: bold;"><u>Due Diligence Results</u></div>
      <div>&#160;</div>
      <div style="text-align: justify;">Our sole manufacturer responded that smelters in its supply chain do source from Covered Countries and that the 3TG in products it manufacturers are not entirely from recycled or scrap sources. Our manufacturer
        identified 233 unique smelters or refiners that may have been used to process 3TG in the products it manufactures. Because our manufacturer&#8217;s CMRT is company-wide and not specific to the Company or the PoNS device and given the large number of
        identified smelters and refiners, the relative size of our operations compared to our manufacturer and the limited number of PoNS devices we have contracted to manufacture to date, we expect that few of the 233 unique smelters or refiners
        identified by our manufacturer that may have been used to process 3TG in the products it manufactures actually processed the 3TG in the PoNS device. For this reason, we determined that we do not have sufficient information to reasonably identify
        the particular smelter or refiner that processed the 3TG in the PoNS device and thus did not list smelters or refiners in this Conflict Minerals Report. Further, we were unable to determine whether the 3TG contained in the PoNS device originated in
        the Covered Countries. Our sole manufacturer reported that it requires its direct suppliers to be DRC conflict-free (free of minerals that directly or indirectly finance or benefit armed groups in Covered Countries), but some of the smelters or
        refiners identified by our manufacturer were not RMAP compliant or participating in a certification program.</div>
      <div>&#160;</div>
      <div style="text-align: justify; font-weight: bold;"><u>Steps to be Taken to Mitigate Risk</u></div>
      <div>&#160;</div>
      <div style="text-align: justify;">To date, we have contracted to manufacture a limited number of PoNS devices for engineering and design verification testing and for our FDA submission as well as commercial devices for launch inventory for
        commercialization in Canada. If we contact to manufacture the PoNS device in the future, at such time, we will consider the following improvements to mitigate risk of sourcing 3TG that benefit armed groups: establishing a cross functional conflict
        minerals team; creating a policy with respect to sourcing 3TG; and, to the extent that smelters or refiners are identified to us and reasonably expected to be part of our supply chain, to utilize information made available by the RMI concerning
        independent third-party audits of smelters and refiners to assess whether a reported smelter or refiner is RMAP compliant.</div>
      <div style="text-align: justify;"> <br>
      </div>
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          <div class="BRPFPageNumberArea" style="text-align: center;"><font class="BRPFPageNumber" style="font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;">3</font></div>
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