Business context and reporting period
The supplied filing is BioSig Technologies, Inc.’s unaudited Form 10-Q for the quarter ended March 31, 2018; it does not identify Streamex Corp. as the registrant. BioSig is a development-stage medical-device company developing the PURE EP System for cardiac electrophysiology procedures. It had no customers or revenue.
Financial performance and position
- Revenue: $0 in both Q1 2018 and Q1 2017; no cost of goods sold.
- Expenses and loss: Operating expenses were $2.64 million, down 9.0% from $2.90 million. Net loss was $2.64 million versus $3.27 million. Preferred dividends of $305,046 (versus $23,745) brought net loss available to common stockholders to $2.94 million, compared with $3.30 million. Basic and diluted loss per share was $0.09 versus $0.14.
- Expense mix: R&D fell 35.6% to $862,420, primarily because the prior-year period included $543,927 of acquired R&D. G&A rose 13.8% to $1.77 million, including higher payroll and professional-service costs. No meaningful revenue or gross margin was reported.
- Cash flow: Operating cash use increased to $2.39 million from $1.61 million. Investing cash use was $3,644; financing provided $1.88 million. Cash declined $512,479 from year-end to $1.04 million.
- Liquidity and obligations: Working capital was $332,764. Current liabilities were $821,447, including $482,636 of dividends payable; Series C preferred stock had a $965,000 liquidation preference. The company reported no convertible debentures outstanding. Stockholders’ deficit was $590,302.
Material changes and notable items
- Effective January 1, 2018, adoption of ASU 2017-11 reclassified $3.04 million of warrant and derivative liabilities to equity. This accounting change removed those balance-sheet liabilities; it was not cash proceeds or operating income.
- Q1 financing included $1.49 million from Series E preferred stock and reported common-stock/subscription proceeds. Series E investors also received warrants, and the financing terms include anti-dilution provisions. Common shares outstanding were 30.50 million at quarter-end and 34.62 million as of May 4.
- After quarter-end, BioSig disclosed an April 30 private placement of common stock and warrants for approximately $4.79 million, net of approximately $1,000 in expenses; $115,470 had been received as subscriptions by March 31. It also reported April conversions of Series C and D preferred stock into common shares.
Outlook, risks and controls
- Management stated it believed available funds could cover research, development, and other requirements for at least six months, but also said existing cash would not fund the next 12 months and estimated a need for approximately $8 million in additional capital. The filing and prior auditor report cite substantial doubt about the company’s ability to continue as a going concern.
- Management expects operating losses and increased R&D and G&A expenses. Continued operations depend on raising additional financing; unavailable or unfavorable financing could force delays or reductions in development and commercialization, or arrangements that surrender product rights.
- BioSig filed a 510(k) application for PURE EP in March 2018 and said it believed it could obtain FDA clearance and begin commercialization by year-end. This is a company expectation, not a guarantee. It planned to submit for CE Mark in 2019. Regulatory approval, successful development, commercial viability, and market demand remain uncertain.
- Disclosure controls and procedures were concluded to be ineffective as of March 31, 2018; the filing says there were no material changes in internal control during the quarter. No legal proceedings were reported.
Important facts for investors to verify
- Confirm the issuer identity: this source is BioSig Technologies, Inc., not Streamex Corp.
- Assess cash runway against the $8 million stated 12-month funding need, including the timing and availability of post-quarter financing.
- Review the April placement’s final proceeds, shares and warrant terms, and the resulting dilution and preferred-stock conversion impact.
- Track FDA review, any clearance timing, and the company’s progress toward commercial sales; the filing reports no revenue to date.
- Review remediation of ineffective disclosure controls and the basis for management’s going-concern assessment.