Business context and reporting period
This is BioSig Technologies, Inc.’s unaudited Form 10-Q for the quarter and nine months ended September 30, 2022, filed November 14, 2022. The request metadata names Streamex Corp., but the filing identifies the registrant as BioSig Technologies, Inc. (NASDAQ: BSGM).
BioSig is commercializing the PURE EP cardiac electrophysiology system. The company reported a national commercial launch beginning July 2022, following limited product release in 2021. Its majority-owned ViralClear subsidiary is no longer pursuing merimepodib and has returned to exploring other applications of the company’s signal-processing technology.
Financial performance and position
Amounts below are in thousands of dollars, except percentages and per-share data.
| Metric | Q3 2022 | Q3 2021 | Nine months 2022 | Nine months 2021 |
|---|---|---|---|---|
| Revenue | $135 | $108 | $151 | $433 |
| Gross profit (margin) | $105 (77.8%) | $70 (64.8%) | $121 (80.1%) | $234 (54.0%) |
| Operating loss | ($6,486) | ($7,801) | ($20,267) | ($24,412) |
| Net loss attributable to common shareholders | ($6,391) | ($7,255) | ($20,226) | ($23,280) |
| Basic and diluted loss per share | ($0.14) | ($0.21) | ($0.50) | ($0.71) |
| Cash used in operating activities | Not separately stated for quarter | ($17,591) | ($20,668) |
At September 30, 2022, cash was $887, working capital was $549, total assets were $5,015, and total liabilities were $3,076. Lease liabilities totaled $882 ($346 current); the filing reports no convertible debentures outstanding. Accounts payable and accrued expenses were $2,092. Cash declined from $11,659 at December 31, 2021. Financing activities generated $6,929 in the first nine months, principally from equity offerings. The company had an accumulated deficit of $209,016.
Changes versus prior comparable periods
- Q3 revenue increased 25% year over year, while nine-month revenue fell 65%, reflecting a $287 decline in product revenue compared with 2021. Management said the commercial launch began in July 2022.
- Q3 common-shareholder net loss narrowed by $864; the nine-month loss narrowed by $3,054. Lower general and administrative expenses, including lower stock-based compensation and reduced ViralClear activity, contributed, while research and development expense increased.
- Operating cash use improved by $3,077 year over year for the nine-month period, but remained substantial relative to available cash.
- Common shares outstanding rose to 45.8 million from 35.6 million at year-end 2021, through equity issuances, service awards and vested restricted stock units. The Series C preferred conversion price reset to $0.63, producing a $125 noncash deemed dividend for the nine months.
Outlook, commentary, risks and unusual items
- Going concern: Management states that cash, working capital and operating cash use raise substantial doubt about the company’s ability to continue as a going concern. Additional financing is required; there is no assurance that financing or sufficient commercial cash flow will be available.
- Commercialization: Management plans to continue commercialization and pursue strategic partnerships, while shifting resources toward commercialization and reducing costs. The filing provides no quantified revenue, earnings or cash-flow guidance and expects continued losses and negative operating cash flows for the foreseeable future.
- Commercial traction and concentration: The company reported a first national purchasing agreement with HCA in July and a 30-month system lease at Kansas City Heart Institute; a second system lease at San Antonio Methodist followed in October. One customer accounted for 94% of Q3 revenue, and one customer represented all accounts receivable at quarter-end. A single contract manufacturer supplied the system.
- Funding and dilution: The company raised $6,929 net from equity financing during the first nine months. After quarter-end, it sold 1,635,015 shares through its ATM for net proceeds of $907. In November, it temporarily reduced the exercise price on 2,613,130 warrants from $1.40 to $0.25; exercises generated $128 net proceeds. Further equity financing could dilute existing holders.
- Nasdaq listing: BioSig disclosed an October 20, 2022 notice for failure to meet Nasdaq’s $1.00 minimum bid-price requirement. The stated compliance period ran through April 17, 2023; delisting remained a risk if compliance was not regained.
- Other risks and commitments: Management cites pandemic-related commercialization delays, market volatility and supply-chain exposure. Purchase commitments were approximately $2,366, with some subject to modification or cancellation. Series C preferred stock has specified triggering events that could require redemption; the company says it may not be able to meet such a demand. The filing reports no currently known legal proceeding expected to have a material adverse effect.
- Unusual accounting and operating items: A July sales-type lease led to $127 of lease-related revenue recognition and a $114 net investment in leases at quarter-end. The company also recorded the Series C deemed dividend following the conversion-price reset. Management reported disclosure controls and procedures were effective and no material change in internal controls during the quarter.
Investor verification priorities
- Confirm the registrant identity: this filing is for BioSig Technologies, not Streamex Corp.
- Assess near-term liquidity, cash burn and the company’s ability to secure funding given the going-concern warning and $887 quarter-end cash balance.
- Track PURE EP placements, customer conversions and recurring lease/service revenue; verify whether customer concentration is declining.
- Review subsequent share and warrant transactions, potential dilution, the Series C preferred terms and remaining ATM capacity.
- Verify Nasdaq bid-price compliance and monitor supplier/manufacturer continuity and the timing and nature of purchase commitments.