Filing summary
Entity discrepancy: The request identifies Streamex Corp., but the supplied Form 10-Q is for BioSig Technologies, Inc. (ticker BSGM). This summary reflects the filing provided, not Streamex.
Business context and reporting period
Unaudited results cover the quarter and nine months ended September 30, 2018; balance-sheet comparisons are to December 31, 2017. BioSig is a development-stage medical-device company developing the PURE EP System for processing and displaying cardiac signals during electrophysiology procedures. The FDA granted the system 510(k) clearance on August 8, 2018. The company reported no customers and no revenue to date.
Key financial metrics
| Metric | Q3 2018 | Q3 2017 | Nine months 2018 | Nine months 2017 |
|---|---|---|---|---|
| Revenue | $0 | $0 | $0 | $0 |
| Operating expenses | $3.15 million | $1.91 million | $11.56 million | $7.83 million |
| Net loss | $3.15 million | $1.80 million | $11.55 million | $8.15 million |
| Net loss available to common shareholders | $3.35 million | $1.82 million | $12.34 million | $8.22 million |
| Loss per common share, basic and diluted | $0.22 | $0.17 | $0.89 | $0.83 |
| Operating cash used | Not stated for quarter | $7.29 million | $5.22 million |
Gross margin is not meaningful because the company had no revenue or cost of goods sold. Nine-month R&D expense was $3.06 million, down 19.6%; general and administrative expense was $8.49 million, up 111.2%. The filing attributes higher G&A chiefly to staffing and commercialization-related costs, stock-based compensation, and service-provider fees.
At September 30, cash was $7.28 million, working capital was $6.71 million, total assets were $7.75 million, and current liabilities were $720,361. The company reported no convertible debentures outstanding. Preferred-stock dividends payable were $256,642. Cash increased by $5.73 million over the first nine months, supported by $13.27 million of financing proceeds, including common-stock and preferred-stock sales and exercises of options and warrants.
Material changes versus comparable periods
- Quarterly net loss available to common shareholders rose to $3.35 million from $1.82 million; nine-month loss rose to $12.34 million from $8.22 million.
- Quarterly R&D expense declined 33.8%, while quarterly G&A expense rose 205.7%. For the nine-month period, R&D decreased 19.6% and G&A increased 111.2%.
- Operating cash use increased to $7.29 million from $5.22 million for the first nine months.
- Equity financing and exercises provided $13.27 million, versus $4.40 million in financing cash flow in the prior-year period. Common shares outstanding increased to 16,337,936 from 11,728,482 at year-end 2017; the filing also reports a 1-for-2.5 reverse split effective September 10, with share data retroactively restated.
- Adoption of ASU 2017-11 moved $3.04 million of warrant and derivative liabilities into equity. This accounting change eliminated those reported liabilities; it was not cash proceeds.
Outlook, risks, contingencies, and unusual items
- Going concern and funding: The filing says substantial doubt exists about the company’s ability to continue as a going concern. Management believed available funds would cover R&D and other requirements for at least eight months, but also estimated it needed approximately $4 million in addition to cash on hand for the next 12 months. The company expects continued losses and says additional financing will be required; future financing could dilute shareholders or require reduced or delayed programs if unavailable.
- Commercial and regulatory execution: Management planned further pre-clinical and clinical work and cited expected ISO certification and CE marking in Q3 2019 and Japanese approval by year-end 2019. These are expectations, not completed milestones. Commercial adoption, customer demand, and product viability remain uncertain.
- Dilution and preferred securities: The filing reports 8.70 million potentially dilutive securities excluded from loss-per-share calculations as anti-dilutive. Preferred-stock conversions, warrant and option exercises, equity compensation, and further fundraising may increase dilution. Preferred dividends increased materially, partly because of minimum dividends due upon conversions of Series D and E shares.
- Commitments and related parties: Future minimum lease payments were $547,902 through 2021. The company disclosed payments to Sherpa Technology Group, whose partner was also a BioSig director, of $352,219 during the first nine months for patent costs, consulting, and reimbursements; no unpaid balance was reported at quarter-end.
- Controls: Management concluded disclosure controls and procedures were not effective as of September 30, 2018, for reasons previously disclosed in the 2017 Form 10-K. No material quarterly change in internal control over financial reporting was reported.
- The filing reports no legal proceedings, defaults upon senior securities, or off-balance-sheet arrangements. It identifies no material subsequent event requiring adjustment, while disclosing approximately $197,000 of warrant-exercise proceeds received in October.
Investor verification priorities
- Confirm the issuer identity: the supplied filing is BioSig Technologies, Inc., not Streamex Corp.
- Track cash burn, financing needs, and the timing and terms of any additional capital raises against management’s stated funding estimates and going-concern disclosure.
- Verify progress from FDA clearance to clinical evaluation, commercialization, customer adoption, and the stated international regulatory milestones.
- Reconcile share-count changes, preferred-stock conversions and dividends, outstanding warrants and options, and potential dilution from future financing.
- Review remediation of the ineffective disclosure controls and procedures, including the reasons previously reported in the 2017 Form 10-K.