Filing and business context
The supplied filing is BioSig Technologies, Inc.’s unaudited Form 10-Q for the quarter ended September 30, 2019, filed October 23, 2019. It is not identified as a Streamex Corp. filing. BioSig is a pre-commercial medical-device company developing the PURE EP signal-processing system for electrophysiology procedures; it reported no revenue to date. Its majority-owned subsidiary, NeuroClear, is developing related technology for neural signal recording.
Key financial results
| Metric | Q3 2019 / September 30, 2019 | Comparable 2018 / change |
|---|---|---|
| Revenue | $0 for the quarter and first nine months | $0 in comparable periods |
| Operating expenses | $5.50 million for Q3; $19.37 million for nine months | Q3 +74.6%; nine months +67.6% |
| Net loss attributable to BioSig | $5.45 million for Q3; $19.28 million for nine months | Q3 loss increased from $3.35 million; nine-month loss increased from $12.34 million |
| Loss per common share | $0.25 for Q3; $0.96 for nine months | $0.22 and $0.89, respectively |
| Operating cash flow | $(11.58) million for nine months | $(7.29) million |
| Cash | $12.31 million at September 30 | $4.45 million at December 31, 2018 |
| Working capital | $11.67 million | Not provided for the comparable date in this filing |
| Lease liabilities | $740,518, of which $365,351 current | No lease liability shown at December 31, 2018 |
There is no gross profit or margin to assess because the company had no revenue or cost of goods sold. Total liabilities were $1.59 million, principally accounts payable, dividends payable, and lease liabilities. The company reported no convertible debentures outstanding.
Changes and liquidity
- Nine-month R&D expense rose 62.0% to $4.95 million, and general and administrative expense rose 69.3% to $14.38 million. Management attributed increases to staffing and compensation, commercialization and research activity, professional and investor-relations services, and stock-based compensation.
- Cash provided by financing was $19.63 million, including $8.62 million from common-stock sales, $3.69 million from NeuroClear stock sales, and proceeds from warrant and option exercises. Common shares outstanding increased from 16.87 million at year-end to 22.03 million at September 30.
- Management disclosed substantial doubt about the company’s ability to continue as a going concern. It said available funds were expected to cover research, development, and other needs for at least 10 months, but also estimated that approximately $4 million beyond cash on hand would be needed for the next 12 months. Further financing is required; availability and terms are uncertain.
Outlook, risks, and notable items
- The PURE EP system received FDA 510(k) clearance in August 2018. The company described early clinical cases and preclinical work, but had not entered commercial sales and had no paying customers. It targeted ISO certification for Q1 2020 and CE Mark for Q2 2020; these are management expectations, not guarantees.
- Management expects operating losses and higher R&D and G&A costs to continue. Risks include commercialization and regulatory timing, product viability and market demand, competition, and the need to raise additional capital. If financing is unavailable on acceptable terms, the company may have to reduce or delay programs; new equity could dilute existing holders.
- BioSig paid $100,000 upfront under a Mayo Clinic patent license and agreed to future royalties of 2%–4% on defined net sales. The filing also describes a potential exchange right: NeuroClear investors may exchange each subsidiary share for 0.9 BioSig common shares if NeuroClear is not listed on a national exchange by October 31, 2020, or upon a defined change of control, whichever occurs first.
- Equity compensation was significant: nine-month equity-based compensation was $7.70 million, and 973,317 shares were issued for services. The company adopted lease accounting in 2019, recording right-of-use assets and lease liabilities.
- Management said disclosure controls were effective. During the quarter, it hired a controller, upgraded financial systems, and engaged outside experts to review and recommend control improvements. No legal proceedings were reported.
Investor facts to verify
- Confirm the filing applies to BioSig Technologies, Inc., not Streamex Corp., and verify the issuer and reporting period before relying on these figures.
- Reconcile the cash runway statements: at least 10 months of funding, alongside an estimated $4 million additional need for the next 12 months.
- Track cash burn, subsequent financing, and the terms and dilution potential of future capital raises.
- Verify progress toward commercial sales, clinical validation, ISO certification, and CE Mark; the stated dates are forward-looking targets.
- Review NeuroClear’s exchange rights, remaining warrant and option overhang, and the impact of stock-based compensation and shares issued for services.