BioSig Technologies(BSGM) - 2024 Q2 - Quarterly Report

Financial Performance - Revenue for the three months ended June 30, 2024, was $13, compared to $0 for the same period in 2023, indicating a significant increase in recognized service revenue[148] - Net loss attributable to common shareholders for the three months ended June 30, 2024 was $3,918 compared to a net loss of $11,096 for the same period in 2023[154] - Revenue for the six months ended June 30, 2024 was $27, compared to $5 for the same period in 2023[155] - Other income for the six months ended June 30, 2024 totaled $1,403, an increase of $1,621 over the expense of $(218) incurred in the same period in 2023[163] - Cash used in operations for the six months ended June 30, 2024 was $2,795, a decrease from $10,543 in the same period in 2023[167] Expenses - Research and development expenses decreased by $1,367, or 79.99%, to $342 for the three months ended June 30, 2024, down from $1,709 in the same period of 2023[149] - General and administrative expenses were $4,914 for the three months ended June 30, 2024, a decrease of $4,193 or 46.04% from $9,107 in the same period of 2023[150] - Payroll related expenses decreased to $3,971 from $5,936, a decrease of $1,965, or 33.11%[151] - Research and development expenses for the six months ended June 30, 2024 were $580, a decrease of $2,191, or 79.07% from $2,771 for the same period in 2023[156] - General and administrative expenses for the six months ended June 30, 2024 were $7,796, a decrease of $7,556 or 49.22% from $15,352 for the same period in 2023[157] - Stock-based compensation for research and development personnel decreased from $761 in Q2 2023 to $133 in Q2 2024[149] Workforce and Operations - The company has reduced its workforce significantly, laying off 16 employees in January 2024 and an additional 26 employees in February 2024 due to funding issues[140] - The company is currently operating with only 5 employees and 6 key consultants, with plans to hire 4-6 additional staff depending on funding[144] Legal Matters - The company received a threat of litigation on December 4, 2023, with a claim for $775,782, which was concluded to be without merit[200] - Another threat of litigation was received on February 22, 2024, seeking restitution for losses totaling $1.44 million, which the company believes is without merit[201] - Plaintiff Michael Gray Fleming filed a lawsuit against the Company seeking at least $288,000 in damages related to stock certificate issuance[202] - The Company believes the allegations are baseless and intends to contest them vigorously[202] - A hearing for the motion to dismiss the Plaintiff's claims is scheduled for September 2024[202] - The Company does not anticipate that the final disposition of other legal proceedings will materially affect its financial position or results of operations[203] - There are no material legal proceedings involving directors, officers, or significant shareholders that are adverse to the Company's interests[203] Capital and Funding - The company announced the intent to acquire Neuro-Kinesis Corporation, with a potential cash contribution of $2.5 million to $6 million upon closing[132] - On January 12, 2024, the company raised gross proceeds of $1.04 million by selling 260,720 shares of common stock and warrants[178] - On May 1, 2024, the company raised $1.14 million by selling 783,406 shares of common stock and warrants, including $634,999 in cash[179] - On May 30, 2024, the company closed an offering raising approximately $3.0 million for working capital and general corporate purposes[181] - A promissory note for $500,000 was issued on March 7, 2024, with a 12% interest rate due in 2026[182] Internal Controls and Compliance - Management identified material weaknesses in internal control over financial reporting, including inadequate identification and reporting of stock-based compensation[193] - The company’s common stock was delisted from Nasdaq due to non-compliance with minimum stockholders' equity requirements, and it is now trading on the OTC Markets[137] Future Outlook - The company expects to incur losses from operations in the near future, with increased marketing, commercialization, and R&D expenses related to the PURE EP system[174] - Future capital requirements will depend on R&D progress, regulatory approvals, and competitive product status[175] Intellectual Property - The company currently holds 41 issued/allowed utility patents and has 27 additional patent applications pending related to the PURE EP System[133]