Streamex Corp. quarterly report, Q1 FY2021

Vollständiges Dokument

Filing summary

Entity and period: The supplied filing is BioSig Technologies, Inc.’s unaudited Form 10-Q for the quarter ended March 31, 2021—not a Streamex Corp. filing. The figures below are in U.S. dollars; financial statement amounts are generally presented in thousands unless stated otherwise.

Business context

BioSig is commercializing its PURE EP cardiac signal acquisition and processing system. It reported its first commercial sales during the quarter, following FDA 510(k) clearance in 2018. ViralClear, 70.2%-owned by BioSig, had been redirected from antiviral drug development to other applications of PURE EP technology. NeuroClear is also pursuing applications of that technology.

Financial results and liquidity

  • Revenue: $118,000, versus none in Q1 2020, comprising $115,000 of product sales and $3,000 of service revenue. One customer represented approximately 100% of quarterly revenue.
  • Gross profit and margin: The consolidated statement of operations reports gross profit of $19,000, about 16% of revenue. The MD&A and segment disclosure contain a $100,000 cost-of-sales/gross-profit discrepancy; see investor checks below.
  • Operating results: Operating expenses were $8.579 million and operating loss was $8.560 million. Net loss was $8.559 million; net loss attributable to BioSig was $8.319 million, and loss attributable to common shareholders was $8.321 million, or $0.26 per share. Q1 2020 common-shareholder loss was $11.340 million, or $0.46 per share.
  • Expenses: Research and development was $1.266 million, down from $4.927 million, largely because Q1 2020 included acquired research and development costs. General and administrative expense was $7.271 million, down from $7.855 million. Stock-based compensation remained significant.
  • Cash flow: Operating activities used $6.991 million, compared with $5.942 million used in Q1 2020. Investing activities used approximately $130,000. Financing provided $1.328 million, mainly from net ATM offering proceeds of $1.300 million.
  • Cash and liquidity: Cash was $22.475 million at quarter-end, down from $28.268 million at December 31, 2020. Working capital was approximately $19.4 million. Management said cash was expected to fund operations for at least 12 months from issuance of the statements.
  • Debt and obligations: The company reported no convertible debentures. Lease liabilities totaled $358,000, including $330,000 current. Series C preferred stock had a $105,000 stated value and $75,000 accrued dividends; specified triggering events could require redemption. Accounts payable and accrued expenses were $3.459 million.

Changes, outlook, and risks

  • Revenue began with the PURE EP system’s first commercial sales; Q1 2020 had no revenue. The company reported 81 patients enrolled in its PURE EP 2.0 study as of March 8, 2021, and more than 800 procedures across nine U.S. clinical sites to date.
  • Management anticipated continuing losses and negative operating cash flow while commercialization develops, with expected increases in marketing, commercialization, research, and clinical-trial spending. It cautioned that additional financing may be needed sooner if assumptions change or spending expands; equity financing could dilute shareholders.
  • COVID-19 had delayed commercialization objectives and could continue affecting operations, capital access, and market conditions. Management also cited uncertainty around demand, pricing, competition, regulatory timing, and financing availability.
  • Aurigene sued ViralClear and BioSig, alleging $1.530 million in unpaid manufacturing and service milestones. BioSig disputes the claim and says it intends to defend itself. Separately, purchase commitments were approximately $2.921 million, some modifiable or cancellable.
  • The company raised $1.300 million net through its ATM offering in the quarter and gave notice to terminate the sales agreement effective April 8, 2021. It reported approximately $41 million remaining under the shelf registration after the ATM agreement was canceled.
  • Management reported effective disclosure controls and no material change in internal control over financial reporting during the quarter.

Most important facts to verify

  • Confirm the issuer: the provided document is BioSig Technologies, Inc. (Nasdaq: BSGM), not Streamex Corp.
  • Reconcile cost of goods sold and gross profit: the financial statements and segment table show approximately $98,618 and $19,429, while MD&A cites $98,518 and $19,529.
  • Assess revenue concentration and repeatability: one customer accounted for approximately all Q1 revenue, and the quarter marked initial commercialization.
  • Evaluate cash runway against the $6.991 million quarterly operating cash use, expected spending, financing needs, and management’s at-least-12-month estimate.
  • Monitor the $1.530 million Aurigene dispute, Series C redemption triggers, purchase commitments, lease obligations, and potential dilution from equity awards or future financing.