Filing summary
Entity mismatch: The supplied filing is BioSig Technologies, Inc. (Nasdaq: BSGM), not Streamex Corp. It is a Form 10-Q for the quarter ended March 31, 2024, filed May 20, 2024. Financial figures below are in thousands of dollars unless noted.
Business context and reporting period
BioSig develops the PURE EP cardiac electrophysiology system and related signal-processing technology. It reported minimal revenue and described itself as being in an early commercialization stage. The filing consolidates BioSig and its majority-owned subsidiaries ViralClear and BioSig AI.
Financial results and liquidity
| Metric | Q1 2024 | Q1 2023 / comparison |
|---|---|---|
| Revenue | $14 | $5 |
| Operating expenses | $3,451 | $7,391 |
| Operating loss | $(3,437) | $(7,386) |
| Net loss | $(3,415) | $(7,382) |
| Net loss attributable to common shareholders | $(3,537) | $(7,334) |
| Basic and diluted loss per share | $(0.36) | $(1.19) |
| Cash used in operating activities | $(1,314) | $(5,648) |
| Cash at period end | $416 | $1,412 at March 31, 2023 |
Revenue was service revenue; one customer accounted for 93% of Q1 2024 revenue. Operating expenses fell 53.3%, including R&D down 77.6% to $238 and G&A down 53.9% to $2,882. The company recorded a $253 impairment charge on property and equipment, citing reduced manufacturing. No meaningful operating margin is evident given the very low revenue.
At March 31, 2024, total assets were $1,589, total liabilities $5,792, and the working capital deficit was $4,492. Accounts payable and accrued expenses were $4,821. The company reported $368 of lease liabilities and a $500 related-party note bearing 12% interest, due March 7, 2026. Financing provided $1,540 in Q1: $1,040 from an equity-and-warrant offering and $500 from the note. There was no investing cash flow.
Changes, outlook, risks and unusual items
- Losses narrowed year over year, alongside major reductions in R&D and G&A; operating cash use also declined. Management attributed cost reductions to staffing cuts and lower service-provider spending.
- Management said the workforce reduction was completed February 20 and significantly reduced near-term operations. By the filing date, the company reported eight employees and four key consultants. It planned, subject to funding, to hire four to six people for business development, PURE EP commercialization, pulse-field ablation products and equipment integration.
- Management stated that substantial doubt exists about the company’s ability to continue as a going concern. It expects continued losses and needs additional financing; planned sources include equity, debt and strategic partnerships. No assured financing or quantified revenue guidance was provided.
- Nasdaq had raised delisting concerns over bid-price, equity and public-shell issues. The company appealed, and the May 7 hearing outcome was pending as of May 17, 2024. A May 6 notice said the bid-price requirement had been regained, but other listing concerns remained.
- After quarter-end, a May 1 offering brought $634,999 in cash and converted $509,165 of related-party note principal and accrued interest into shares and warrants. The filing reports aggregate consideration of $1,144,164.
- A 1-for-10 reverse stock split took effect February 2, 2024. The Series C preferred conversion price reset from $2.50 to $0.5302, producing a $133 noncash deemed dividend. Q1 included 1,862,744 common shares issued for services, contributing to dilution.
- The company disclosed ineffective disclosure controls and a material weakness in financial reporting controls, citing stock-compensation accounting, period-end review and segregation of duties. It described remediation plans, but the weaknesses were not yet remediated.
- Contingencies include a filed lawsuit seeking $144,000 plus additional damages the plaintiff says exceed $50,000; management said it could not estimate the potential loss. The filing also describes threatened claims, which the company considers without merit. Purchase commitments were approximately $1.76 million.
Important facts for investors to verify
- Confirm the issuer: this filing is for BioSig Technologies, not Streamex Corp.
- Check the current Nasdaq listing status and outcome of the May 7, 2024 hearing, including whether equity and other listing standards were satisfied.
- Assess liquidity after the May financing, cash burn, overdue payables and the company’s ability to fund operations.
- Review subsequent share issuances, warrants, preferred-stock conversion terms and potential dilution.
- Track workforce, leadership and operating status, and whether PURE EP commercialization and planned partnerships are progressing.
- Review remediation and testing of financial-reporting controls, and updates on litigation and purchase commitments.