Streamex Corp. annual report, FY2022

Business context and reporting period

Filing identity: The supplied filing is BioSig Technologies, Inc.’s Form 10-K for the fiscal year ended December 31, 2022, filed March 31, 2023. It is not a Streamex Corp. filing, despite the request metadata.

BioSig is an early-commercialization medical-device company developing and selling the FDA 510(k)-cleared PURE EP system for electrophysiology procedures. It reported minimal revenue to date. Its majority-owned ViralClear subsidiary was redirected toward nerve-sensing technology; the company says it discontinued pharmaceutical operations and does not intend to further develop merimepodib.

Financial performance and liquidity

Amounts below are in thousands of dollars unless stated otherwise.

• Revenue declined 35.1%, with product sales down to $254 from $414; service revenue rose to $32 from $27. Management attributed the higher gross margin partly to increased PURE EP pricing.
• G&A fell 23.2%, primarily due to lower equity-based and other compensation, professional services, consulting, and travel-related costs. R&D increased 3.9%.
• Cash was $357 at year-end, down from $11,659. Working capital was negative $2,133; current assets were $1,128 and current liabilities were $3,261. Accumulated deficit was approximately $216 million.
• Financing activities provided $10,571; investing activities used $168. The company reported no convertible debentures outstanding. Balance-sheet liabilities included $765 of lease liabilities; Series C preferred stock had a $105 stated value and separate redemption and dividend terms.
• Total assets were $4,110 and total liabilities were $3,713 at December 31, 2022. Common shares outstanding were 54,610,638 at year-end and 66,857,687 as of March 30, 2023.

Material changes and developments

• Operating cash use improved to $21,705 from $26,399, and net loss attributable to common shareholders narrowed to $27,271 from $31,926. Revenue nevertheless declined, and the company remained substantially loss-making.
• During 2022, BioSig raised net proceeds through common-stock offerings and an at-the-market program, and received proceeds from warrant exercises. The ATM agreement was terminated effective December 1, 2022.
• After year-end, the filing reports further private placements. It describes January–March 2023 sales of 8.50 million shares and warrants for net proceeds of approximately $6.76 million; separately, it summarizes nine placements from November 2022 through March 2023 as approximately $9.78 million in aggregate consideration. These amounts cover different stated periods and should be checked against the transaction disclosures.
• The company entered into two 30-month PURE EP system leases in 2022 and reported a national purchasing agreement with HCA, with systems leased at two hospitals. A Bellin Health acquisition agreement was announced in January 2023.
• PURE EP had been used in more than 3,000 procedures by over 80 physicians at 21 U.S. hospitals, according to the filing. The company reported a randomized redo-AF study with 20 patients and a mean procedure-time reduction of 11.3 minutes; the cited approximate $418 per-procedure savings is an estimate, not reported realized savings.

Outlook, risks and unusual items

• Going concern: The auditor and management disclosed substantial doubt about BioSig’s ability to continue as a going concern for the twelve months following issuance of the financial statements. The company says it needs additional financing and expects continued losses and negative operating cash flows.
• Management plans to continue commercializing PURE EP and pursue financing through equity, debt, or strategic partnerships. It expects ongoing commercialization, marketing, R&D, and clinical expenses. The filing provides no quantified revenue, earnings, or cash-flow guidance.
• Series C preferred stock carries a 9% annual dividend and potential redemption upon specified triggering events, including a judgment above $100,000 or bankruptcy proceedings. The filing says the company may not be able to meet a redemption demand; preferred dividends may rise to 18% under certain covenant failures.
• Disclosure controls and internal control over financial reporting were deemed ineffective at year-end. Management identified a material weakness involving identification, recording, and reporting of stock-based compensation under consulting and other third-party contracts not yet ratified by the board. Remediation was ongoing; management said the weakness was not yet considered remediated.
• Other principal risks include limited commercial adoption, reimbursement uncertainty, competition, regulatory requirements and foreign-market approvals, reliance on third parties and Mayo Clinic collaborations, potential dilution, and Nasdaq listing and trading-liquidity risks. The filing reports no known legal proceedings expected to have a material adverse effect.
• FY2022 included a $210 noncash deemed preferred-stock dividend after a conversion-price reset. FY2021 included a $553 gain on settlement of debt, which did not recur.

Key facts investors should verify

• Confirm the issuer and ticker: the filing identifies BioSig Technologies, Inc. (Nasdaq: BSGM), not Streamex Corp.
• Review the going-concern disclosure against cash needs, operating burn, subsequent financing, and the company’s ability to raise further capital.
• Reconcile the post-year-end financing summaries, including gross versus net proceeds, dates, shares, warrants, and resulting dilution.
• Assess commercial conversion of evaluations and leases into repeatable sales, and whether clinical time and cost findings translate into independently validated customer economics.
• Track remediation and testing of the stock-based-compensation material weakness and the effectiveness of disclosure controls.
• Review Series C preferred-stock redemption triggers, dividend accruals, conversion-price resets, and potential common-share dilution.