Filing summary
Entity discrepancy: The request identifies Streamex Corp., but the supplied Form 10-Q is for BioSig Technologies, Inc. (Nasdaq: BSGM). This summary reflects the filing provided, not a Streamex filing.
Business context and reporting period
Unaudited quarterly report for the three and six months ended June 30, 2023, compared with the corresponding 2022 periods. BioSig develops the PURE EP cardiac electrophysiology platform and reports three segments: BioSig Technologies, ViralClear, and BioSig AI. Management described PURE EP as in a national commercial launch; the company reported use in more than 3,500 procedures by over 80 physicians at 21 U.S. hospitals. ViralClear is developing a nerve-recording platform, while BioSig AI is pursuing AI-related medical applications.
Key financial metrics
Amounts below are in thousands of dollars, except per-share data and share counts.
| Metric | Q2 2023 | Q2 2022 | Six months 2023 | Six months 2022 |
|---|---|---|---|---|
| Revenue | $0 | $8 | $5 | $16 |
| Operating expenses | $10,908 | $5,724 | $18,299 | $13,797 |
| Operating loss | $(10,908) | $(5,716) | $(18,294) | $(13,781) |
| Net loss attributable to BioSig | $(11,093) | $(5,759) | $(18,425) | $(13,722) |
| Net loss attributable to common shareholders | $(11,096) | $(5,870) | $(18,430) | $(13,835) |
| Basic and diluted loss per share | $(0.16) | $(0.15) | $(0.28) | $(0.36) |
Q2 gross profit was $0; six-month gross profit was $5, with reported gross margins of 100% in both six-month periods, reflecting negligible service revenue and no cost of sales. R&D was $1,709 in Q2 and $2,771 for six months. General and administrative expense was $9,107 in Q2 and $15,352 for six months.
At June 30, 2023, cash was $1,252, total assets $4,050, current liabilities $3,332, total liabilities $3,614, and stockholders’ equity $331. Working capital was negative $1,345. Accounts payable and accrued expenses were $2,906. Lease liabilities totaled $612 ($330 current and $282 long term). The company reported no convertible debentures outstanding.
For the first six months, operating cash use was $10,543, investing cash use $122, and financing cash provided $11,560. Cash increased by $895 from year-end 2022 to $1,252 at June 30. Financing included $9,993 from common-stock-and-warrant sales and $1,567 from BioSig AI share sales.
Material changes versus prior comparable periods
- Q2 revenue fell to zero from $8; six-month revenue declined to $5 from $16. Revenue remained immaterial and concentrated in one customer.
- Q2 operating expenses increased 91% year over year, while six-month operating expenses rose 33%. Six-month G&A increased 43%, including higher stock-based compensation and a $1,307 inventory allowance.
- Six-month net loss attributable to common shareholders widened to $18,430 from $13,835. Loss per share improved to $(0.28) from $(0.36), alongside a larger weighted-average share count.
- Cash used in operations improved to $10,543 from $12,644, but cash on hand fell to $1,252 from $5,077 at June 30, 2022.
- Common shares outstanding rose to 73.46 million from 54.61 million at December 31, 2022. Equity financing and shares issued for services contributed to dilution; the filing reports 74.93 million shares outstanding as of August 13, 2023.
Outlook, risks, contingencies and unusual items
- Going concern: Management said cash, the working-capital deficit, recurring losses, and operating cash outflows raise substantial doubt about the company’s ability to continue as a going concern. Additional financing is required; no assurance is given that financing or sufficient commercial cash flow will be available.
- Management outlook: The company plans to continue PURE EP commercialization and development of other technology applications, while seeking equity, debt, or strategic-partner funding. Management cited cost reductions from a shift toward commercialization, but expects near-term operating losses and continued commercialization, R&D, and clinical-trial spending.
- Commercial and market risks: PURE EP commercialization may be delayed by market conditions, COVID-19-related effects, competition, demand, pricing, and financing-market volatility. Failure to secure capital could require reductions or delays in development and commercialization efforts.
- Unusual expense and dilution: The company recorded a $1,307 inventory write-down because of product age. Six-month equity-based compensation was $6,891, and shares issued for services had a reported fair value of approximately $6,968. Potentially dilutive securities excluded from loss-per-share calculations totaled 16.57 million.
- Commitments and preferred stock: Purchase commitments were approximately $2,966, with some subject to modification or cancellation. Series C preferred stock has redemption-trigger provisions; a triggering event could create a payment obligation the company may be unable to meet.
- Subsequent financing: After quarter-end, BioSig reported a July common-stock-and-warrant placement with net proceeds of approximately $1,346; BioSig AI also sold additional shares. These transactions provide funding but add dilution.
- Controls: Management concluded disclosure controls were not effective at a reasonable-assurance level. It also reported a material weakness related to identifying, recording, and reporting stock compensation under certain third-party contracts, and described remediation steps that had not yet been tested as effective.
- The filing reported no material litigation known to the company and no material changes to the risk factors from its 2022 Form 10-K.
Most important facts for investors to verify
- Confirm whether this BioSig Technologies filing is the intended filing; it does not identify Streamex Corp.
- Assess the company’s near-term cash runway, financing needs, and ability to raise capital, in light of the going-concern disclosure and operating cash burn.
- Track PURE EP placements, recurring revenue, customer concentration, and whether commercialization can scale beyond minimal reported revenue.
- Review dilution from equity raises, warrants, stock-based compensation, and subsidiary share issuances, including post-quarter transactions.
- Monitor remediation and testing of the disclosed control weaknesses, as well as the impact of the inventory reserve and preferred-stock redemption terms.