Streamex Corp. quarterly report, Q3 FY2021

Business context and reporting period

This is BioSig Technologies, Inc.’s unaudited Form 10-Q for the quarter ended September 30, 2021—not a filing identified as Streamex Corp. BioSig is commercializing the PURE EP cardiac signal acquisition and processing system; the company reported its first commercial sales in 2021. ViralClear, 68.44%-owned, had been redirected from antiviral development to exploring applications of the company’s signal-processing technology.

Financial results

Amounts below are in thousands of dollars except per-share data. Q3 refers to the three months ended September 30; YTD refers to the nine months ended September 30.

At September 30, 2021, cash was $17.535 million, working capital was $17.428 million, total liabilities were $2.993 million, and equity was $18.575 million. Cash was $28.268 million at December 31, 2020. The balance sheet includes $700,000 of lease liabilities; the company reported no convertible debentures outstanding. YTD operating cash use was $20.668 million, investing cash use $398,000, and financing cash provided $10.333 million. Accumulated deficit was $180.278 million.

Material changes versus prior comparable periods

• Revenue began to be recognized in 2021: Q3 revenue was $108,000 and YTD revenue $433,000, compared with none in 2020. One customer represented approximately 93% of Q3 revenue; two customers represented 69% and 31% of YTD revenue. One customer accounted for all accounts receivable at quarter-end.
• Operating expenses and net losses declined substantially from 2020, principally because ViralClear’s merimepodib development was discontinued and related spending fell. Lower stock-based compensation also reduced reported expenses. BioSig’s commercialization and R&D staffing and payroll costs increased.
• Cash decreased by $10.733 million from year-end 2020. The company raised approximately $9.0 million net from a July common-stock offering and $1.3 million net through an at-the-market offering earlier in 2021. Common shares outstanding increased to 35.255 million from 30.765 million at December 31, 2020.
• A $553,000 gain on debt settlement reduced reported losses in 2021.

Outlook, commentary, risks and unusual items

• Management expects continued operating losses and negative operating cash flows, with higher commercialization, marketing, R&D and general and administrative costs. Management said existing cash was expected to fund requirements for approximately one year and a day from the filing date, while warning that additional financing could be needed sooner if assumptions change. No revenue or earnings guidance was provided.
• COVID-19 and related disruption delayed commercialization objectives into 2022. Management described plans to pursue ISO 13485 certification in the first half of 2022 and CE marking in the first half of 2023, subject to the availability and guidance of the European notified body.
• The PURE EP 2.0 study completed enrollment with 51 procedures; the filing reports reviewer findings of 75% overall improvement in signal quality and interpretation confidence versus conventional sources. The company reported more than 1,600 procedures across 13 U.S. clinical sites. In September, it announced a manufacturing and professional services agreement with Plexus.
• Aurigene had claimed $1.53 million in disputed milestone and service payments. The parties settled for $1.0 million, payable in installments of $400,000, $300,000 and $300,000 on September 30, 2021, December 31, 2021 and March 31, 2022, respectively, without admission by either party. The filing records the $553,000 settlement gain; verify installment payments and remaining accruals.
• Risks include dependence on limited suppliers and manufacturers, potential supply-chain shortages and shipping delays, uncertain commercialization and financing needs, and possible dilution from future equity issuance. Series C preferred stock has redemption triggers that could create an obligation the company may be unable to meet. Purchase commitments were approximately $1.96 million, some subject to modification or cancellation.
• Management concluded disclosure controls and procedures were effective as of quarter-end and reported no material change in internal control over financial reporting during the quarter.

Important facts for investors to verify

• Confirm issuer identity: the supplied filing is for BioSig Technologies, Inc. (Nasdaq: BSGM), not Streamex Corp.
• Check subsequent PURE EP sales, customer concentration, collections, and whether gross margins persist as commercial volume changes.
• Assess cash burn against the stated runway and the company’s ability to raise capital without substantial dilution.
• Confirm payment status of the Aurigene settlement and monitor other commitments, preferred-stock redemption triggers, and supply-chain exposure.
• Track progress toward manufacturing scale-up, clinical and regulatory milestones, ISO certification, and CE marking; these are plans, not assured outcomes.