BioSig Technologies, Inc. | ||||
(Exact name of registrant as specified in its charter) |
Delaware | 3845 | 26-4333375 | ||
(State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification No.) |
12424 Wilshire Boulevard, Suite 745 Los Angeles, California 90025 (310) 820-8100 | ||||
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices) |
Kenneth Londoner Executive Chairman 12424 Wilshire Boulevard, Suite 745 Los Angeles, California 90025 (310) 820-8100 | ||||
(Name, address, including zip code, and telephone number, including area code, of agent for service) |
Copies of all communications, including communications sent to agent for service, should be sent to: | ||||
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F-1 |
Common stock offered by the selling stockholders: | Up to | |||
Common stock outstanding prior to the offering: | ||||
Common stock outstanding after this offering: | 14,574,095 | |||
Use of proceeds: | We will not receive any proceeds from the sale of the common stock offered by the selling stockholders. | |||
Offering price: | The selling stockholders will be selling their shares of common stock at a fixed price of | |||
Market for the common stock: | There has been no market for our securities and a public market may not develop, or, if any market does develop, it may not be sustained. Our common stock is not listed on any exchange or quoted on the OTC Bulletin Board. After the effective date of the registration statement relating to this prospectus, we hope to have a market maker file an application with the Financial Industry Regulatory Authority, for our common stock to eligible for trading on the OTC Bulletin Board. We do not yet have a market maker who has agreed to file such application. | |||
Risk factors: | You should carefully consider the information set forth in this prospectus and, in particular, the specific factors set forth in the “Risk Factors” section beginning on page 2 of this prospectus before deciding whether or not to invest in shares of our common stock. |
(1) | The number of shares of common stock outstanding after the offering is based upon |
2,990,977 shares of common stock issuable upon the exercise of currently outstanding options at a weighted average exercise price of $2.09 per share; and |
3,015,146 shares of common stock available for future issuance under the BioSig Technologies, Inc. 2012 Equity Incentive Plan. |
● | successful completion of the preclinical and clinical development of our products; |
● | obtaining necessary regulatory approvals from the U.S. Food and Drug Administration or other regulatory authorities; |
● | establishing manufacturing, sales, and marketing arrangements, either alone or with third parties; and |
● | raising sufficient funds to finance our activities. |
● | the U.S. Food and Drug Administration may not approve a clinical trial protocol or a clinical trial, or may place a clinical trial on hold; |
● | subjects may not enroll in clinical trials at the rate we expect or we may not follow up on subjects at the rate we expect; |
● | subjects may experience events unrelated to our products; |
● | third-party clinical investigators may not perform our clinical trials consistent with our anticipated schedule or the clinical trial protocol and good clinical practices, or other third-party organizations may not perform data collection and analysis in a timely or accurate manner; |
● | interim results of any of our clinical trials may be inconclusive or negative; |
● | regulatory inspections of our clinical trials may require us to undertake corrective action or suspend or terminate the clinical trials if investigators find us not to be in compliance with regulatory requirements; or |
● | governmental regulations or administrative actions may change and impose new requirements, particularly with respect to reimbursement. |
● | restrictions on our products, manufacturers or manufacturing processes; |
warning letters and untitled letters; |
● | civil penalties and criminal prosecutions and penalties; |
fines; |
● | injunctions; |
● | product seizures or detentions; |
● | import or export bans or restrictions; |
● | voluntary or mandatory product recalls and related publicity requirements; |
● | suspension or withdrawal of regulatory approvals; |
● | total or partial suspension of production; and |
● | refusal to approve pending applications for marketing approval of new products or of supplements to approved applications. |
● | we may not be able to attract and build an effective marketing or sales force; |
● | the cost of establishing, training and providing regulatory oversight for a marketing or sales force may be substantial; and |
● | there are significant legal and regulatory risks in medical device marketing and sales that we have never faced, and any failure to comply with applicable legal and regulatory requirements for sales, marketing and distribution could result in an enforcement action by the U.S. Food and Drug Administration, European regulators or other authorities that could jeopardize our ability to market the system or could subject us to substantial liability. |
● | the degree and range of protection any patents will afford us against competitors, including whether third parties will find ways to invalidate or otherwise circumvent our patents; |
● | if and when such patents will be issued, and, if granted, whether patents will be challenged and held invalid or unenforceable; |
● | whether or not others will obtain patents claiming aspects similar to those covered by our patents and patent applications; or |
● | whether we will need to initiate litigation or administrative proceedings which may be costly regardless of outcome. |
● | obtain licenses, which may not be available on commercially reasonable terms, if at all; |
● | abandon an infringing product candidate; |
● | redesign our product candidates or processes to avoid infringement; |
● | cease usage of the subject matter claimed in the patents held by others; |
● | pay damages; and/or |
● | defend litigation or administrative proceedings which may be costly regardless of outcome, and which could result in a substantial diversion of our financial and management resources. |
● | a limited availability for market quotations for our shares of common stock; |
● | reduced liquidity with respect to our shares of common stock; |
● | a determination that our shares of common stock is a “penny stock,” which will require brokers trading in our common stock to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our common stock; and |
● | limited amount of news and analyst coverage. |
● | incur additional indebtedness; |
● | permit liens on assets; |
● | repay, repurchase or otherwise acquire more than a de minimis number of shares of common stock, Series A Preferred Stock or Series B Preferred Stock; |
● | pay cash dividends to our stockholders; and |
● | engage in transactions with affiliates. |
inability to manufacture our product candidates on a commercial scale on our own, or in collaboration with third parties; |
difficulties in obtaining financing on commercially reasonable terms; |
changes in the size and nature of our competition; |
loss of one or more key executives or scientists; and |
changes in general, national or regional economic conditions. |
| ● | Higher quality cardiac signal acquisition for accurate and more efficient electrophysiology studies; |
● | Precise, uninterrupted, real time evaluations of electrograms; |
● | Reliable cardiac recordings to better determine precise ablation targets, strategy and end point of procedures; and |
● | A portable device that can be fully integrated into existing electrophysiology lab environments. |
● | Initial system concept validation has been performed in collaboration with physicians at the Texas Cardiac Arrhythmia Institute at St. David’s Medical Center in Austin, Texas in June 2011. The Texas Cardiac Arrhythmia Institute provided challenging recordings obtained with electrophysiology recording systems presently in use at the institute during various electrophysiology studies. Our technology team successfully imported the data into the PURE EP System and using proprietary signal processing, the PURE EP System was able to reduce baseline wander, noise, and artifacts from the data and therefore provide better diagnostic quality signals. |
● | We have established clinical and/or advisory relationships for both technology development and validation studies with physicians and researchers affiliated with the following medical centers: Texas Cardiac Arrhythmia Institute, Austin, TX; Cardiac Arrhythmia Center at the University of California at Los Angeles, Los Angeles, CA; Mount Sinai Medical Center, New York, NY; Beaumont Medical Center, Detroit, MI; University Hospitals Case Medical Center, Cleveland, OH; and The Heart Rhythm Institute, University of Oklahoma Health Sciences Center, Oklahoma City, OK. |
● | As part of our pre-clinical trials, physicians affiliated with the Texas Cardiac Arrhythmia Institute, University Hospitals Case Medical Center and Mount Sinai Medical Center provide us with recordings from challenging ablation procedures, mainly for ventricular tachycardia and atrial fibrillation, where the attending electrophysiologists face clinical dilemmas with the recordings obtained by their current recording systems. We believe that the recordings that the PURE EP System has provided them, which show a reduction in baseline wander, noise, and artifacts, are of higher diagnostic value than the original recordings. |
● | The Cardiac Arrhythmia Center at the University of California at Los Angeles and Dr. Kalyanam Shivkumar, a member of our board of directors, have played a significant role in the initial functional testing of our hardware. Dr. Shivkumar and his team have enabled us to learn the connectivity of the lab and its devices that pertain to where our PURE EP System will fit in. In June 2013, we commenced our first proof-of-concept animal study with the assistance of Dr. Shivkumar. |
● | We are developing a confidence index that will assist electrophysiologists in further differentiating true signals from noise, which may potentially provide guidance in identifying ablation targets. The confidence index is expected to be an integral part of the software of the PURE EP System, which we believe will significantly facilitate the locating of ablation targets. |
● | GE’s CardioLab Recording System was developed in the early 1990s by Prucka Engineering and was acquired by GE in 1999. |
● | Bard’s LabSystem PRO EP Recording System was originally designed in the late 1980s. |
● | Siemens developed the Axiom Sensis XP in 2002. |
● | St. Jude Medical’s EP-WorkMate Recording System was acquired from EP MedSystems in 2008, which had received approval for the product from the U.S. Food and Drug Administration in 2003. |
● | Product design and development; |
● | Product testing; |
● | Product manufacturing; |
● | Product labeling and packaging; |
● | Product handling, storage, and installation; |
● | Pre-market clearance or approval; |
● | Advertising and promotion; and |
● | Product sales, distribution, and servicing. |
● | Quality System regulation, which requires manufacturers to follow design, testing, control, documentation and other quality assurance procedures during the manufacturing process; |
● | Establishment Registration, which requires establishments involved in the production and distribution of medical devices intended for commercial distribution in the U.S. to register with the U.S. Food and Drug Administration; |
● | Medical Device Listing, which requires manufacturers to list the devices they have in commercial distribution with the U.S. Food and Drug Administration; |
● | Labeling regulations, which prohibit “misbranded” devices from entering the market, as well as prohibit the promotion of products for unapproved or “off-label” uses and impose other restrictions on labeling; and |
● | Medical Device Reporting regulations, which require that manufacturers report to the U.S. Food and Drug Administration if their device may have caused or contributed to a death or serious injury or malfunctioned in a way that would likely cause or contribute to a death or serious injury if it were to recur. |
● | Fines, injunctions, and civil penalties; |
● | Mandatory recall or seizure of our products; |
● | Administrative detention or banning of our products; |
● | Operating restrictions, partial suspension or total shutdown of production; |
● | Refusing our request for 510(k) clearance or pre-market approval of new product versions; |
● | Revocation of 510(k) clearance or pre-market approvals previously granted; and |
● | Criminal penalties. |
Name | Age | Position with the Company | |||
Kenneth | 46 | Executive Chairman and Director | |||
Steve Chaussy | 60 | Chief Financial Officer | |||
Asher Holzer, Ph.D. | 63 | Chief Scientific Advisor and Director | |||
Kalyanam Shivkumar, MD, Ph.D. | 45 | Director | |||
Roy Tanaka | 66 | Director | |||
Jonathan Steinhouse | 46 | Director | |||
Seth H. Z. Fischer | 56 | Director |
Name and principal position | Year | Salary ($) | Stock Awards ($) (1) | Total ($) | ||||||||||
Kenneth L. Londoner, Executive Chairman and Director | 2013 | 211,500 | 458,400 | (2) | 669,900 | |||||||||
2012 | 144,000 | — | 144,000 | |||||||||||
David Drachman, Former Chief Executive Officer, President and Chairman | 2013 | 0 | 3,414,646 | 3,414,646 | (3 ) |
Name and principal position | Year | Salary ($) | Stock Awards ($) (1) | Total ($) | ||||||||||
Kenneth L. Londoner, Executive Chairman and Director | 2013 | 211,500 | 458,400 | 669,900 | ||||||||||
2012 | 144,000 | - | 144,000 | |||||||||||
David Drachman, Former Chief Executive Officer, President and Chairman | 2013 | 0 | - | 0 (2) |
Name | Shares Subject to Options | Exercise Price | Date of Grant | Vesting Schedule | Expiration | ||||||
Kenneth L. Londoner | 250,000 | $ | 2.09 | 01/16/2013 | Exercisable immediately | 01/16/2020 |
Name | Fees earned or paid in cash ($) | Stock Awards ($) (1) | Option Awards ($) (1) | All other compensation ($) | Total ($) | Fees earned or paid in cash ($) | Stock Awards ($) (1) | Option Awards ($) (1) | All other compensation ($) | Total ($) | |||||||||||||||||||||||||||||||||
Kalyanam Shivkumar, MD, Ph.D. | - | - | - | - | 0 | — | — | — | — | 0 | |||||||||||||||||||||||||||||||||
Roy Tanaka | - | - | - | - | 0 | — | — | — | — | 0 | |||||||||||||||||||||||||||||||||
Jeffrey O’Donnell | - | - | 175,624 | (2) | - | 175,624 | — | — | 175,624 | ( 3 ) | — | 175,624 | |||||||||||||||||||||||||||||||
William Uglow (3) | - | - | - | - | 0 | ||||||||||||||||||||||||||||||||||||||
William Uglow ( 4 ) | — | — | — | — | 0 | ||||||||||||||||||||||||||||||||||||||
Jonathan Steinhouse | - | - | - | - | 0 | — | — | — | — | 0 | |||||||||||||||||||||||||||||||||
Asher Holzer, Ph.D. | - | - | - | - | 0 | — | — | — | — | 0 | |||||||||||||||||||||||||||||||||
Seth H. Z. Fischer | - | - | 337,880 | (4) | - | 337,880 | — | — | 337,880 | ( 5 ) | — | 337,880 |
(1) | Amounts represent the aggregate grant date fair value, as determined in accordance with FASB ASC Topic 718, with the exception that the amounts shown assume no forfeitures. For additional discussion of the valuation assumptions used in determining stock-based compensation and the grant date fair value for stock options, see “Management’s Discussion and Analysis of Financial Condition and Results of Operation — Critical Accounting Policies — Stock based compensation” and Note 1 — “Summary of Significant Accounting Policies” of the Notes to the Financial Statements included herein. These amounts do not represent the actual value that may be realized by our non-employee directors, as that is dependent on the long-term appreciation in our common stock. |
(2) | Mr. O’Donnell resigned as a member of our board of directors in February 2014 . |
( 3 ) | The stock option award is comprised of an option to purchase 95,800 shares of common stock, which vested in 12 equal monthly installments beginning on February 1, 2013, with an exercise price of |
( 4 ) | Mr. Uglow resigned as a member of our board of directors in October 2013. |
( 5 ) | The stock option award is comprised of an option to purchase 187,500 shares of common stock, which vested and will continue to vest in 12 equal monthly installments beginning on June 2, 2013, with an exercise price of $2.09 per share and an expiration of May 2, 2020, so long as Mr. Fischer is providing services to us. If |
each person known by us to beneficially own more than 5.0% of our common stock; |
each of our directors; |
each of the named executive officers; and |
all of our directors and executive officers as a group. |
Name of Beneficial Owner | Number of Shares Beneficially Owned(1) | Percentage of Common Stock Owned (1)(2) | ||||||
5% Owners | ||||||||
Miko Consulting Group, Inc. (3) | 3,442,474 | 40.41 | % | |||||
Alpha Capital Anstalt ( 4 ) | 1,708,396 | ( 5 ) | 17.47 | % | ||||
Officers and Directors | ||||||||
Kenneth L. Londoner | 4,191,245 | ( 6 ) | 45.44 | % | ||||
Asher Holzer, Ph.D. | 81,000 | ( 7 ) | * | |||||
Kalyanam Shivkumar, MD, Ph.D. | 50,000 | ( 8 ) | * | |||||
Roy Tanaka | 119,821 | ( 9 ) | 1.39 | % | ||||
Jonathan Steinhouse | 250,633 | (10) | 2.92 | % | ||||
Seth H. Z. Fischer | 187,500 | (11) | 2.15% | |||||
All directors and executive officers as a group ( 7 persons) | 4,973,561 | 58.01 | % |
Name of Beneficial Owner | Number of Shares Beneficially Owned(1) | Percentage of Common Stock Owned (1)(2) | ||||||
5% Owners | ||||||||
Miko Consulting Group, Inc. | 3,467,474 | 41.2 | % | |||||
Alpha Capital Anstalt (3) | 1,208,833 | (4) | 13.1 | % | ||||
Officers and Directors | ||||||||
Kenneth L. Londoner | 4,109,883 | ( 5 ) | 45.8 | % | ||||
Asher Holzer, Ph.D. | 81,000 | (6) | * | |||||
Kalyanam Shivkumar, MD, Ph.D. | 50,000 | (7) | * | |||||
Roy Tanaka | 119,821 | (8) | 1.4 | % | ||||
Jeffrey O’Donnell | 183,300 | (9) | 2.2 | % | ||||
Jonathan Steinhouse | 195,914 | ( 10 ) | 2.3 | % | ||||
Seth H. Z. Fischer | 156,250 | ( 11 ) | 1.8 | |||||
All directors and executive officers as a group ( 8 persons) | 4,989,530 | 52.2 | % |
(1) | Shares of common stock beneficially owned and the respective percentages of beneficial ownership of common stock assume the exercise of all options and other securities convertible into common stock beneficially owned by such person or entity currently exercisable or exercisable within 60 days of |
(2) | These percentages have been calculated based on |
(3) | Each of Budimir Drakulic and Lora Mikolaitis has joint voting and dispositive power over the securities held for the account of this stockholder . |
(4) | The address for Alpha Capital Anstalt is Pradafant 7, 9490 Furstentums, Vaduz, Lichtenstein. Konrad Ackermann has sole voting and dispositive power over the securities held for the account of this stockholder. |
Comprised of (i) |
Comprised of (i) 101,890 shares of common stock directly held by Mr. Londoner, (ii) |
(7) | Comprised of options to purchase |
(8) | Comprised of options to purchase |
Comprised of options to purchase 119,821 shares of common stock that are currently exercisable . |
(10) | Comprised of (i) |
Consists of options to purchase |
each of our directors; |
each of the named executive officers; and |
all of our directors and executive officers as a group. |
Name of Beneficial Owner | Number of Shares Beneficially Owned(1) | Percentage of Common Stock Owned (1)(2) | ||||||
Officers and Directors | ||||||||
Kenneth L. Londoner | 10 | (3) | 5.6 | % |
Name of Beneficial Owner | Number of Shares Beneficially Owned(1) | Percentage of Common Stock Owned (1)(2) | ||||||
Officers and Directors | ||||||||
Kenneth L. Londoner | 10 | (3) | 5.6 | % |
(1) | Shares of common stock beneficially owned and the respective percentages of beneficial ownership of common stock assume the exercise of all options and other securities convertible into common stock beneficially owned by such person or entity currently exercisable or exercisable within 60 days of |
(2) | These percentages have been calculated based on 177.5 shares of our Series B Preferred Stock outstanding as of |
(3) | Mr. Londoner’s shares are convertible into 24,752 shares of common, based upon a conversion price of $2.02 per share. The shares of our Series B Preferred Stock will automatically convert immediately upon us becoming subject to the reporting requirements under Section 13 or 15(d) of the Securities and Exchange Act, as amended. |
each person known by us to beneficially own more than 5.0% of our common stock; |
each of our directors; |
each of the named executive officers; and |
all of our directors and executive officers as a group. |
Name of Beneficial Owner | Number of Shares Beneficially Owned (1) | Percentage of Common Stock Owned (1)(2) | ||||||
5% Owners | ||||||||
Alpha Capital Anstalt (3) | 625 | 22.5 | % | |||||
Michael N. Emmerman (4) | 200 | 7.2 | % | |||||
David W. Frost (5) | 150 | 5.4 | ||||||
Michael B Carroll & Sheila J Carroll JTWROS (6) | 150 | 5.4 | ||||||
Officers and Directors | ||||||||
Kenneth L. Londoner | 200 | 7.2 | % | |||||
Jonathan Steinhouse | 25 | * | ||||||
All directors and executive officers as a group (2 persons) | 225 | 8.1 | % |
(1) | Shares of common stock beneficially owned and the respective percentages of beneficial ownership of common stock assume the exercise of all options and other securities convertible into common stock beneficially owned by such person or entity currently exercisable or exercisable within 60 days of |
(2) | These percentages have been calculated based on 2,781 shares of our Series C Preferred Stock outstanding as of |
(3) | The address of this stockholder is Pradafant 7, 9490 Furstentums, Vaduz, Lichtenstein. |
(4) | The address of this stockholder is 151 East 63rd Street, New York, NY 10065. |
(5) | The address of this stockholder is 4701 Pleasant Street, Apartment 361, West Des Moines, Iowa 50266. |
(6) | The address of this stockholder is 3919 Happy Valley Road, Lafayette, California 94549. |
Ownership Before Offering | Ownership After Offering | |||||||||||||||
Selling Stockholder | Number of shares of common stock beneficially owned (1) | Number of shares offered | Number of shares of common stock beneficially owned (1) | Percentage of common stock beneficially owned (1) (2) | ||||||||||||
Michael N. Emmerman | 343,452 | (3) | 219,528 | ( 4 ) | 123,924 | (5) | 1.5 | % | ||||||||
Lau Family Fund LP ( 6 ) | 60,724 | ( 7 ) | 54,742 | ( 8 ) | 5,982 | (9) | * | |||||||||
Jonathan Steinhouse ( 10 ) | 195,914 | ( 11 ) | 27,298 | ( 12 ) | 168,616 | (13) | 2.0 | % | ||||||||
Kenneth L. Londoner ( 14 ) | 4,109,883 | ( 15 ) | 217,891 | ( 16 ) | 3,891,992 | ( 17 ) | 44.4 | % | ||||||||
R. Ian Chaplin | 55,221 | ( 18 ) | 27,230 | ( 19 ) | 27,991 | (20) | * | |||||||||
Kenneth Epstein | 120,153 | ( 21 ) | 108,191 | ( 22 ) | 11,962 | (23) | * | |||||||||
Jerome B. Zeldis | 59,811 | ( 24 ) | 53,829 | ( 25 ) | 5,982 | (26) | * | |||||||||
Brio Capital Master Fund Ltd. ( 27 ) | 149,524 | ( 28 ) | 134,571 | ( 29 ) | 14,953 | (30) | * | |||||||||
Alpha Capital Anstalt ( 31 ) | 1,208,834 | ( 32 ) | 672,847 | ( 33 ) | 535,987 | (34) | 6.3 | |||||||||
Sterne Agee & Leach Inc C/F Maree Casatelli SEP IRA | 29,906 | ( 35 ) | 26,915 | ( 36 ) | 2,991 | (37) | * | |||||||||
Ron D Craig | 136,238 | ( 38 ) | 99,762 | ( 39 ) | 36,476 | (40) | * | |||||||||
Michael & Susan Engdall JTWROS | 40,673 | ( 41 ) | 36,485 | ( 42 ) | 4,188 | (43) | * | |||||||||
David W Frost | 179,426 | ( 44 ) | 161,483 | ( 45 ) | 17,943 | (46) | * | |||||||||
Phillip Todd Herndon | 84,562 | ( 47 ) | 53,828 | ( 48 ) | 30,734 | (49) | * | |||||||||
Rex A Jones | 173,966 | ( 50 ) | 107,656 | ( 51 ) | 66,310 | (52) | * | |||||||||
Nabil M Yazgi | 128,934 | ( 53 ) | 21,531 | ( 54 ) | 107,403 | (55) | 1.3 | % | ||||||||
Portofino Ventures LP ( 56 ) | 23,924 | ( 57 ) | 21,531 | ( 58 ) | 2,393 | (59) | * | |||||||||
Thomas G Hoffman | 37,332 | ( 60 ) | 26,915 | ( 61 ) | 10,417 | (62) | * | |||||||||
James W Lees | 35,291 | ( 63 ) | 31,701 | ( 64 ) | 3,590 | (65) | * | |||||||||
Martin F Sauer | 57,080 | ( 66 ) | 26,915 | ( 67 ) | 30,165 | (68) | * | |||||||||
Ray Weber | 52,633 | ( 69 ) | 47,249 | ( 70 ) | 5,384 | (71) | * | |||||||||
Sterne Agee & Leach Inc C/F Raymond E Weber IRA | 41,866 | ( 72 ) | 37,679 | ( 73 ) | 4,187 | (74) | * | |||||||||
Fourfathom Capital, LLC ( 75 ) | 119,618 | ( 76 ) | 107,656 | ( 77 ) | 11,962 | (78) | * | |||||||||
Michael B & Sheila J Carroll JTWROS | 179,426 | ( 79 ) | 161,483 | ( 80 ) | 17,943 | (81) | * | |||||||||
Scott D. Gamble | 119,618 | ( 82 ) | 107,656 | ( 83 ) | 11,962 | (84) | * | |||||||||
Brian E. Jones & Peggy A. Jones JTWROS | 84,562 | ( 85 ) | 53,828 | ( 86 ) | 30,734 | (87) | * | |||||||||
David Patterson | 23,924 | ( 88 ) | 21,531 | ( 89 ) | 2,393 | (90) | * | |||||||||
Herschel E. Johnson | 20,336 | ( 91 ) | 18,302 | ( 92 ) | 2,034 | (93) | - | |||||||||
George & Karin Alexa Elefther JTWROS | 18,972 | ( 94 ) | 4,786 | ( 95 ) | 14,186 | (96) | * | |||||||||
L. Dean Fox | 18,972 | ( 97 ) | 4,786 | ( 98 ) | 14,186 | (99) | * | |||||||||
Sterne Agee & Leach Inc C/F John L Sommer IRA | 60,272 | ( 100 ) | 9,570 | ( 101 ) | 50,702 | (102) | * | |||||||||
Sterne Agee & Leach Inc C/F David W Frost IRA | 6,460 | ( 103 ) | 5,742 | ( 104 ) | 718 | (105) | * | |||||||||
Allan D Carlson | 10,767 | ( 106 ) | 9,570 | ( 107 ) | 1,197 | (108) | * | |||||||||
Ian H Murray | 10,767 | ( 109 ) | 9,570 | ( 110 ) | 1,197 | (111) | * | |||||||||
Sterne Agee & Leach Inc C/F Randy Payne IRA | 35,519 | ( 112 ) | 9,570 | ( 113 ) | 25,949 | (114) | * | |||||||||
Dr. Richard & Anita Matter JTWROS | 21,533 | ( 115 ) | 19,140 | ( 116 ) | 2,393 | (117) | * | |||||||||
Robert J Gray | 40,502 | ( 118 ) | 23,924 | ( 119 ) | 16,578 | (120) | * | |||||||||
Randal E Margo | 26,915 | ( 121 ) | 23,924 | ( 122 ) | 2,991 | (123) | * | |||||||||
Eugene E Eubank | 53,829 | ( 124 ) | 47,848 | ( 125 ) | 5,981 | (126) | * | |||||||||
Robert W Baird & Co Inc TTEE FBO Brian Mark Miller ROTH IRA | 107,656 | ( 127 ) | 95,694 | ( 128 ) | 11,962 | (129) | * | |||||||||
Sterne Agee & Leach Inc C/F Dr Gary W Chmielewski IRA | 10,767 | ( 130 ) | 9,570 | ( 131 ) | 1,197 | (132) | * | |||||||||
Laidlaw & Co (UK) Ltd ( 133 ) | 177,057 | ( 134 ) | 177,057 | ( 134 ) | 0 | - |
Ownership Before Offering | Ownership After Offering | ||||||||||||||
Selling Stockholder | Number of shares of common stock beneficially owned (1) | Number of shares offered | Number of shares of common stock beneficially owned (1) | Percentage of common stock beneficially owned (1) (2) | |||||||||||
Michael N. Emmerman | 487,314 | (3) | 345,686 | (4) | 141,628 | (5) | 1.65 | ||||||||
Lau Family Fund LP (6) | 96,693 | (7) | 86,284 | (8) | 10,409 | (9) | * | ||||||||
Jonathan Steinhouse (10) | 250,633 | ( 1 1 ) | 43,068 | (12) | 207,565 | (13) | 2.43 | ||||||||
Kenneth L. Londoner (14) | 4,191,245 | (15) | 344,049 | (16) | 3,847,196 | (17) | 41.75 | ||||||||
R. Ian Chaplin | 73,204 | (18) | 43,000 | (19) | 30,204 | (20) | * | ||||||||
Kenneth Epstein | 192,084 | (21) | 171,270 | (22) | 20,814 | (23) | * | ||||||||
Jerome B. Zeldis | 114,148 | (24) | 85,371 | (25) | 28,777 | (26) | * | ||||||||
Brio Capital Master Fund Ltd. (27) | 239,438 | (28) | 213,420 | (29) | 26,018 | (30) | * | ||||||||
Alpha Capital Anstalt (31) | 1,708,396 | (32) | 1,067,086 | (33) | 641,310 | (34) | 7.36% | ||||||||
Sterne Agee & Leach Inc C/F Maree Casatelli SEP IRA | 47,889 | (35) | 42,685 | (36) | 5,204 | (37) | * | ||||||||
Ron D Craig | 202,484 | (38) | 157,332 | (39) | 45,152 | (40) | * | ||||||||
Michael & Susan Engdall JTWROS | 64,965 | (41) | 57,678 | (42) | 7,287 | (43) | * | ||||||||
David W Frost | 287,322 | (44) | 256,101 | (45) | 31,221 | (46) | * | ||||||||
Phillip Todd Herndon | 120,530 | (47) | 85,369 | (48) | 35,161 | (49) | * | ||||||||
Rex A Jones | 245,897 | (50) | 170,735 | (51) | 75,162 | (52) | * | ||||||||
Nabil M Yazgi | 143,322 | (53) | 34,148 | (54) | 109,174 | (55) | 1.27 | ||||||||
Portofino Ventures LP (56) | 38,312 | (57) | 34,148 | (58) | 4,164 | (59) | * | ||||||||
Thomas G Hoffman | 55,315 | (60) | 42,685 | (61) | 12,630 | (62) | * | ||||||||
James W Lees | 56,429 | (63) | 50,183 | (64) | 6,246 | (65) | * | ||||||||
Martin F Sauer | 75,063 | (66) | 42,685 | (67) | 32,378 | (68) | * | ||||||||
Ray Weber | 84,118 | (69) | 74,750 | (70) | 9,368 | (71) | * | ||||||||
Sterne Agee & Leach Inc C/F Raymond E Weber IRA | 67,042 | (72) | 59,757 | (73) | 7,285 | (74) | * | ||||||||
Fourfathom Capital, LLC (75) | 191,549 | (76) | 170,735 | (77) | 20,814 | (78) | * | ||||||||
Michael B & Sheila J Carroll JTWROS | 287,321 | ( 29 ) | 256,101 | (80) | 31,221 | (81) | * | ||||||||
Scott D. Gamble | 191,549 | (82) | 170,735 | (83) | 20,814 | (84) | * | ||||||||
Brian E. Jones & Peggy A. Jones JTWROS | 120,530 | (85) | 85,369 | (86) | 35,161 | (87) | * | ||||||||
David Patterson | 38,312 | (88) | 34,148 | (89) | 4,164 | (90) | * | ||||||||
Herschel E. Johnson | 32,565 | (91) | 29,026 | (92) | 3,539 | (93) | — | ||||||||
George & Karin Alexa Elefther JTWROS | 22,127 | (94) | 7,498 | (95) | 14,629 | (96) | * | ||||||||
L. Dean Fox | 22,127 | (97) | 7,498 | (98) | 14,629 | (99) | * | ||||||||
Sterne Agee & Leach Inc C/F John L Sommer IRA | 66,581 | (100) | 14,993 | (101) | 51,588 | (102) | * | ||||||||
Sterne Agee & Leach Inc C/F David W Frost IRA | 10,245 | (103) | 8,996 | (104) | 1,249 | (105) | * | ||||||||
Allan D Carlson | 17,076 | (106) | 14,993 | (107) | 2,083 | (108) | * | ||||||||
Ian H Murray | 17,076 | (109) | 14,993 | (110) | 2,083 | (111) | * | ||||||||
Sterne Agee & Leach Inc C/F Randy Payne IRA | 41,828 | (112) | 14,993 | (113) | 26,835 | (114) | * | ||||||||
Dr. Richard & Anita Matter JTWROS | 34,150 | (115) | 29,986 | (116) | 4,164 | (117) | * | ||||||||
Robert J Gray | 56,272 | (118) | 37,481 | (119) | 18,791 | (120) | * | ||||||||
Randal E Margo | 42,685 | (121) | 37,481 | (122) | 5,204 | (123) | * | ||||||||
Eugene E Eubank | 85,369 | (124) | 74,962 | (125) | 10,407 | (126) | * | ||||||||
Robert W Baird & Co Inc TTEE FBO Brian Mark Miller ROTH IRA | 170,735 | (127) | 149,921 | (128) | 20,814 | (129) | * | ||||||||
Sterne Agee & Leach Inc C/F Dr Gary W Chmielewski IRA | 17,076 | (130) | 14,993 | (131) | 2,083 | (132) | * | ||||||||
Laidlaw & Co (UK) Ltd (133) | 373,910 | (134) | 308,079 | (134) | 65,831 | (136) | — |
(1) | Shares of common stock beneficially owned and the respective percentages of beneficial ownership of common stock assume the exercise of all options and other securities convertible into common stock beneficially owned by such person or entity currently exercisable or exercisable within 60 days of |
(2) | These percentages have been calculated based on |
(3) | Includes 4,216 shares of common stock issued in lieu of cash payments on the interest accrued on his bridge notes, |
(4) | Includes 4,216 shares of common stock issued in lieu of cash payments on the interest accrued on his bridge notes, |
(5) | Includes |
(6) | S7 Capital, the general partner of Lau Family Fund LP, has voting and dispositive power over the securities held for the account of this selling stockholder. S7 Capital is controlled by Steven Lau, its manager, and accordingly, Mr. Lau may be deemed to have sole voting and dispositive power over the securities owned by Lau Family Fund LP. |
(7) | Comprised of 913 shares of common stock issued in lieu of cash payments on the interest accrued on his bridge notes, |
(8) | Comprised of 913 shares of common stock issued in lieu of cash payments on the interest accrued on his bridge notes, |
(9) | Comprised of |
(10) | Jonathan Steinhouse is a member of our board of directors. |
(11) | Includes 383 shares of common stock issued in lieu of cash payments on the interest accrued on his bridge notes, |
(12) | Comprised of 383 shares of common stock issued in lieu of cash payments on the interest accrued on his bridge notes, |
(13) | Includes |
(14) | Kenneth L Londoner is our executive chairman. |
(15) | Comprised of (i) 99,311 shares of common stock directly held by Mr. Londoner and 2,579 shares of common stock issued in lieu of cash payments on the interest accrued on his bridge notes, (ii) |
(16) | Comprised of 2,579 shares of common stock issued in lieu of cash payments on the interest accrued on his bridge notes, |
(17) | Comprised of (i) |
(18) | Includes 315 shares of common stock issued in lieu of cash payments on the interest accrued on the bridge notes, |
(19) | Comprised of 315 shares of common stock issued in lieu of cash payments on the interest accrued on the bridge notes, |
(20) | Includes |
(21) | Comprised of 535 shares of common stock issued in lieu of cash payments on the interest accrued on his bridge notes, |
(22) | Comprised of 535 shares of common stock issued in lieu of cash payments on the interest accrued on his bridge notes, |
(23) | Comprised of |
(24) | Comprised of |
(25) | Comprised of |
(26) | Comprised of |
(27) | Shaye Hirsch, director of Brio Capital Master Fund Ltd., has sole voting and dispositive power over the securities held for the account of this selling stockholder. |
(28) | Comprised of |
(29) | Comprised of |
(30) | Comprised of |
(31) | Konrad Ackermann has sole voting and dispositive power over the securities held for the account of this selling stockholder. Pursuant to the Securities Purchase Agreement by and among us and the holders of the Series C Preferred Stock, Alpha Capital Anstalt was entitled to an expense reimbursement from us of $95,000, of which $62,500 was paid in cash and $32,500 was paid shares of common stock at a conversion price of $2.09 per share, and a warrant to purchase 8,700 shares of common stock. In addition, any amendments to the Securities Purchase Agreement must be approved by holders representing at least 67% of the outstanding shares of the Series C Preferred Stock, which holders must include Alpha Capital Anstalt, so long as Alpha Capital Anstalt holds not less than $100,000 of Series C Preferred Stock. Also, we may not (i) increase the number of authorized shares of preferred stock, (ii) amend our charter documents, including the terms of the Series C Preferred Stock, in any manner adverse to the holders of the Series C Preferred Stock, or (iii) perform certain covenants, including restrictions on incurrence of debt and liens, repurchasing our equity securities, payment of cash dividends and engaging in affiliate transactions without the approval of holders representing at least 67% of the outstanding shares of the Series C Preferred Stock, which holders must include Alpha Capital Anstalt, so long as Alpha Capital Anstalt holds not less than $100,000 of Series C Preferred Stock. |
(32) | Comprised of |
(33) | Comprised of |
(34) | Includes |
(35) | Comprised of |
(36) | Comprised of |
(37) | Comprised of |
(38) | Comprised of (i) 10 shares of Series B Preferred Stock that are convertible into 24,752 shares of common stock, which were purchased for an aggregate purchase price of $50,000, (ii) |
(39) | Comprised of |
(40) | Includes |
(41) | Comprised of |
(42) | Comprised of |
(43) | Comprised of |
(44) | Comprised of |
(45) | Comprised of |
(46) | Comprised of |
(47) | Comprised of (i) 10 shares of Series B Preferred Stock that are convertible into 24,752 shares of common stock, which were purchased for an aggregate purchase price of $50,000, (ii) |
(48) | Comprised of |
(49) | Includes |
(50) | Comprised of (i) 20 shares of Series A Preferred Stock that are convertible into 54,348 shares of common stock, which were purchased for an aggregate purchase price of $100,000, (ii) |
(51) | Comprised of |
(52) | Includes 20,814 shares of common stock issuable upon the exercise of warrants. |
(53) | Comprised of (i) 35 shares of Series A Preferred Stock that are convertible into 95,109 shares of common stock, which were purchased for an aggregate purchase price of $175,000, (ii) 4 shares of Series B Preferred Stock that are convertible into 9,901 shares of common stock, which were purchased for an aggregate purchase price of $20,000, (iii) |
(54) | Comprised of |
(55) | Includes |
(56) | Portofino Management, Inc., the general partner of Portofino Ventures LP, has voting and dispositive power over the securities held for the account of this selling stockholder. Portofino Management, Inc. is controlled by Michael Knudsen, its president, and accordingly, Mr. Knudsen may be deemed to have sole voting and dispositive power over the securities owned by Portofino Management, Inc. |
(57) | Comprised of |
(58) | Comprised of |
(59) | Comprised of |
(60) | Comprised of (i) 3 shares of Series B Preferred Stock that are convertible into 7,426 shares of common stock, which were purchased for an aggregate purchase price of $15,000, (ii) |
(61) | Comprised of |
(62) | Includes |
(63) | Comprised of |
(64) | Comprised of |
(65) | Comprised of |
(66) | Comprised of (i) 10 shares of Series A Preferred Stock that are convertible into 27,174 shares of common stock, which were purchased for an aggregate purchase price of $50,000, (ii) |
(67) | Comprised of |
(68) | Includes |
(69) | Comprised of |
(70) | Comprised of |
(71) | Comprised of |
(72) | Comprised of |
(73) | Comprised of |
(74) | Comprised of |
(75) | Brian Miller, manager of Fourfathom Capital, LLC, has sole voting and dispositive power over the securities held for the account of this selling stockholder. |
(76) | Comprised of |
(77) | Comprised of |
(78) | Comprised of |
(79) | Comprised of |
(80) | Comprised of |
(81) | Comprised of |
(82) | Comprised of |
(83) | Comprised of |
(84) | Comprised of |
(85) | Comprised of (i) 10 shares of Series B Preferred Stock that are convertible into 24,752 shares of common stock, which were purchased for an aggregate purchase price of $50,000, (ii) |
(86) | Comprised of |
(87) | Includes |
(88) | Comprised of |
(89) | Comprised of |
(90) | Comprised of |
(91) | Comprised of |
(92) | Comprised of |
(93) | Comprised of |
(94) | Comprised of (i) 5 shares of Series A Preferred Stock that are convertible into 13,587 shares of common stock, which were purchased for an aggregate purchase price of $25,000, (ii) |
(95) | Comprised of |
(96) | Includes |
(97) | Comprised of (i) 5 shares of Series A Preferred Stock that are convertible into 13,587 shares of common stock, which were purchased for an aggregate purchase price of $25,000, (ii) |
(98) | Comprised of |
(99) | Includes |
(100) | Comprised of (i) 20 shares of Series B Preferred Stock that are convertible into 49,505 shares of common stock, which were purchased for an aggregate purchase price of $100,000, (ii) |
(101) | Comprised of |
(102) | Includes |
(103) | Comprised of |
(104) | Comprised of |
(105) | Comprised of |
(106) | Comprised of |
(107) | Comprised of |
(108) | Comprised of |
(109) | Comprised of |
(110) | Comprised of |
(111) | Comprised of |
(112) | Comprised of (i) 5 shares of Series B Preferred Stock that are convertible into 24,752 shares of common stock, which were purchased for an aggregate purchase price of $25,000, (ii) |
(113) | Comprised of |
(114) | Includes |
(115) | Comprised of |
(116) | Comprised of |
(117) | Comprised of |
(118) | Comprised of (i) 5 shares of Series A Preferred Stock that are convertible into 13,587 shares of common stock, which were purchased for an aggregate purchase price of $25,000, (ii) |
(119) | Comprised of |
(120) | Includes |
(121) | Comprised of |
(122) | Comprised of |
(123) | Comprised of |
(124) | Comprised of |
(125) | Comprised of |
(126) | Comprised of |
(127) | Comprised of |
(128) | Comprised of |
(129) | Comprised of |
(130) | Comprised of |
(131) | Comprised of |
(132) | Comprised of |
(133) | Laidlaw & Co (UK) Ltd is a registered broker-dealer. Matthew Eitner is the chief executive officer of Laidlaw & Co (UK) Ltd and, in such capacity, he may be deemed to have voting and dispositive power over the securities held for the account of this selling stockholder. On January 17, 2013, we engaged Laidlaw & Co (UK) Ltd to serve as our placement agent in connection with the private placement of our Series C Preferred Stock and the related warrants. In connection with such private placement, we paid Laidlaw & Co (UK) Ltd a fee of $166,860 and we issued it a five-year warrant to purchase 177,057 shares of our common stock, at an initial exercise price of $2.61 per share. As a result of the amendment to our Series C Preferred Stock, the full-ratchet anti-dilution protection provision of the such warrant decreased the exercise price to $1.50 per share and increased the number of shares issuable to 308,079. In addition, on January 18, 2013, we issued Laidlaw & Co (UK) Ltd (or its assigns) two seven-year warrants to purchase: 35,076 shares at an initial exercise price of $1.84 per share in connection with the private placement of our Series A Preferred Stock; and 30,755 shares at an initial exercise price of $2.02 per share in connection with our Series B Preferred Stock. |
(134) | Comprised of 308,079 shares of common stock issuable upon the exercise of warrants. |
(135) | Comprised of 65,831 shares of common stock issuable upon the exercise of warrants. |
(i) | we fail to, or announce our intention not to, deliver common stock share certificates upon conversion of our Series C Preferred Stock prior to the seventh trading day after such shares are required to be delivered, |
(ii) | we fail for any reason to pay in full the amount of cash due pursuant to our failure to deliver common stock share certificates upon conversion of our Series C Preferred Stock within five calendar days after notice therefor is delivered, |
(iii) | we fail to have available a sufficient number of authorized and unreserved shares of common stock to issue to upon a conversion of our Series C Preferred Stock, |
(iv) | we fail to observe or perform any other covenant, agreement or warranty contained in, or otherwise commit any breach of our obligations under, the securities purchase agreement, the registration rights agreement, the certificate of designation or the warrants entered into pursuant to the private placement transaction for our Series C Preferred Stock, which failure or breach could have a material adverse effect, and such failure or breach is not cured within 30 calendar days after written notice was delivered, |
(v) | we are party to a change of control transaction, |
(vi) | we file for bankruptcy or a similar arrangement or are adjudicated insolvent, |
(vii) | we are subject to a judgment of greater than $100,000, and such judgment remains unvacated, unbonded or unstayed for a period of 45 calendar days, |
● | incur additional indebtedness; |
● | permit liens on assets; |
● | repay, repurchase or otherwise acquire more than a de minimis number of shares of common stock, Series A Preferred Stock or Series B Preferred Stock; |
● | pay cash dividends to our stockholders; and |
● | engage in transactions with affiliates. |
prior to such time the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder; |
upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, exclusive of shares owned by directors who are also officers and by certain employee stock plans; or |
at or subsequent to such time, the business combination is approved by the board of directors and authorized by the affirmative vote at a stockholders’ meeting of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder. |
do not provide for cumulative voting rights (therefore allowing the holders of a majority of the shares of common stock entitled to vote in any election of directors to elect all of the directors standing for election, if they should so choose); |
provide that special meetings of our stockholders may be called only by our board of directors, chairman, chief executive officer, president or secretary; and |
provide advance notice provisions with which a stockholder who wishes to nominate a director or propose other business to be considered at a stockholder meeting must comply. |
by a majority of the disinterested directors, even though less than a quorum; |
by a committee of such directors designated by a majority vote of such directors, even though less than a quorum; |
if there are no disinterested directors, or if such directors so direct, by independent legal counsel; or |
by a majority vote of the stockholders, at a meeting at which a quorum is present. |
any breach of the director’s duty of loyalty to the corporation or its stockholders; |
acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of the law; |
violation of certain provisions of the Delaware General Corporation Law; |
any transaction from which the director derived an improper personal benefit; or |
any act or omission prior to the adoption of such a provision in the certificate of incorporation. |
ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction; |
purchases by a broker-dealer as principal and resale by the broker-dealer for its account; |
an exchange distribution in accordance with the rules of the applicable exchange; |
privately negotiated transactions; |
settlement of short sales entered into after the effective date of the registration statement of which this prospectus is a part; |
broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share; |
through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; |
loan or pledge the shares to a broker-dealer, who may sell the loaned shares or, in the event of default, sell the pledged shares; |
through underwriters or dealers; |
through agents; |
directly to purchasers, including institutional investors; |
a combination of any such methods of sale; or |
any other method permitted pursuant to applicable law. |
F-2 | |
2012 | |
2013 | |
2013 | F-5 |
2013 | F-6 |
F-7 |
BIOSIG TECHNOLOGIES, INC. | ||||||||
(a development stage company) | ||||||||
BALANCE SHEETS | ||||||||
DECEMBER 31, 2012 AND 2011 | ||||||||
2012 | 2011 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 24,237 | $ | 69,020 | ||||
Prepaid expenses | 33,125 | 82,118 | ||||||
Capitalized financing costs | 212,635 | 84,167 | ||||||
Total current assets | 269,997 | 235,305 | ||||||
Property and equipment, net | 30,209 | 24,752 | ||||||
Other assets: | ||||||||
Deposits | 25,000 | 25,000 | ||||||
Total assets | $ | 325,206 | $ | 285,057 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 472,882 | $ | 35,725 | ||||
Advances, related party | 27,040 | 27,040 | ||||||
Note payable, related party | 30,000 | - | ||||||
Liability to placement agent | 94,500 | - | ||||||
Dividends payable | 117,751 | 26,892 | ||||||
Total current liabilities | 742,173 | 89,657 | ||||||
Long term liabilities: | ||||||||
Deferred rent payable | 5,067 | 5,067 | ||||||
Note payable, related party | 218,000 | - | ||||||
Convertible bridge notes payable, $225,000 related party | 613,812 | - | ||||||
Redeemable Series A preferred stock | 922,000 | 922,000 | ||||||
Redeemable Series B preferred stock | 887,500 | 100,000 | ||||||
Total long term liabilities | 2,646,379 | 1,027,067 | ||||||
Total liabilities | 3,388,552 | 1,116,724 | ||||||
Commitments and contingencies | ||||||||
Stockholders' deficit | ||||||||
Preferred stock, $0.001 par value, authorized 1,000,000 shares | ||||||||
Common stock, $0.001 par value, authorized 50,000,000 and 10,000,000 shares as of December 31, 2012 and 2011, respectively, 8,166,238 and 8,136,238 issued and outstanding as of December 31, 2012 and 2011, respectively | 8,166 | 8,136 | ||||||
Additional paid in capital | 833,647 | 588,354 | ||||||
Deficit accumulated during development stage | (3,905,159 | ) | (1,428,157 | ) | ||||
Total stockholders' deficit | (3,063,346 | ) | (831,667 | ) | ||||
Total liabilities and stockholders' deficit | $ | 325,206 | $ | 285,057 | ||||
/s/ Liggett, Vogt & Webb, P.A. | |
Liggett, Vogt & Webb, P.A. |
BIOSIG TECHNOLOGIES, INC. | ||||||||||||
(a development stage company) | ||||||||||||
STATEMENTS OF OPERATIONS | ||||||||||||
From February 24, | ||||||||||||
2009 (date of | ||||||||||||
Year ended December 31, | inception) to | |||||||||||
2012 | 2011 | December 31, 2012 | ||||||||||
Operating expenses: | ||||||||||||
Research and development | $ | 888,948 | $ | 582,525 | $ | 1,471,473 | ||||||
General and administrative | 1,363,007 | 484,127 | 2,097,190 | |||||||||
Depreciation | 10,020 | 6,795 | 16,815 | |||||||||
Total operating expenses | 2,261,975 | 1,073,447 | 3,585,478 | |||||||||
Net loss from operations | (2,261,975 | ) | (1,073,447 | ) | (3,585,478 | ) | ||||||
Other income (expense): | ||||||||||||
Interest income (expense) | (18,286 | ) | 171 | (18,115 | ) | |||||||
Financing costs | (105,881 | ) | (77,933 | ) | (183,814 | ) | ||||||
Net loss before income taxes | (2,386,142 | ) | (1,151,209 | ) | (3,787,407 | ) | ||||||
Income taxes (benefit) | - | - | - | |||||||||
Net loss | (2,386,142 | ) | (1,151,209 | ) | (3,787,407 | ) | ||||||
Preferred stock dividend | (90,860 | ) | (26,892 | ) | (117,752 | ) | ||||||
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS’ | $ | (2,477,002 | ) | $ | (1,178,101 | ) | $ | (3,905,159 | ) | |||
Net loss per common share, basic and diluted | $ | (0.30 | ) | $ | (0.18 | ) | ||||||
Weighted average number of common shares outstanding, basic and diluted | 8,142,222 | 6,650,026 | ||||||||||
BIOSIG TECHNOLOGIES, INC. | ||||||||
(a development stage company) | ||||||||
BALANCE SHEETS | ||||||||
DECEMBER 31, 2013 AND 2012 | ||||||||
2013 | 2012 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 302,187 | $ | 24,237 | ||||
Prepaid expenses | - | 33,125 | ||||||
Capitalized financing costs | - | 212,635 | ||||||
Total current assets | 302,187 | 269,997 | ||||||
Property and equipment, net | 24,866 | 30,209 | ||||||
Other assets: | ||||||||
Deposits | 25,000 | 25,000 | ||||||
Total assets | $ | 352,053 | $ | 325,206 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 819,330 | $ | 472,882 | ||||
Advances, related party | 30,781 | 27,040 | ||||||
Note payable, related party | - | 30,000 | ||||||
Liability to placement agent | 52,800 | 94,500 | ||||||
Redeemable Series A Preferred Stock, liquidation preference of $922,000, net of debt discount of $37,399 | 884,601 | - | ||||||
Redeemable Series B Preferred Stock, liquidation preference of $887,500, net of debt discount of $72,478 | 815,022 | - | ||||||
Dividends payable | 414,967 | 117,751 | ||||||
Total current liabilities | 3,017,501 | 742,173 | ||||||
Long term liabilities: | ||||||||
Deferred rent payable | - | 5,067 | ||||||
Note payable, related party | - | 218,000 | ||||||
Convertible bridge notes payable, $229,359 related party | - | 613,812 | ||||||
Redeemable Series A Preferred Stock, liquidation preference of $922,000 | - | 922,000 | ||||||
Redeemable Series B Preferred Stock, liquidation preference of $887,500 | - | 887,500 | ||||||
Total long term liabilities | - | 2,646,379 | ||||||
Total liabilities | 3,017,501 | 3,388,552 | ||||||
Commitments and contingencies | - | - | ||||||
Series C 9% Convertible Preferred stock, liquidation preference of $2,781,000, net of debt discount of $483,893 | 2,297,107 | - | ||||||
Stockholders' deficit | ||||||||
Preferred stock, $0.001 par value, authorized 1,000,000 shares, designated 200 shares of Series A, 600 shares of Series B and 4,200 shares of Series C Preferred Stock | ||||||||
Common stock, $0.001 par value, authorized 50,000,000 shares, 8,412,101 and 8,166,238 issued and outstanding as of December 31, 2013 and 2012, respectively | 8,412 | 8,166 | ||||||
Additional paid in capital | 9,036,038 | 833,647 | ||||||
Deficit accumulated during development stage | (14,007,005 | ) | (3,905,159 | ) | ||||
Total stockholders' deficit | (4,962,555 | ) | (3,063,346 | ) |
BIOSIG TECHNOLOGIES, INC. | ||||||||||||||||||||||||||||||||||||
(a development stage company) | ||||||||||||||||||||||||||||||||||||
STATEMENT OF STOCKHOLDERS' DEFICIT | ||||||||||||||||||||||||||||||||||||
FROM FEBRUARY 24, 2009 (DATE OF INCEPTION) TO DECEMBER 31, 2012 | ||||||||||||||||||||||||||||||||||||
Deficit | ||||||||||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||||||||||
Additional | During | |||||||||||||||||||||||||||||||||||
Common stock | Shares subscribed | Shares to be issued | Paid in | Development | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Stage | Total | ||||||||||||||||||||||||||||
Common stock issued to founders | 4,000,000 | $ | 4,000 | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 4,000 | ||||||||||||||||||||
Common stock issuable to founders | - | - | - | - | 3,400,000 | 3,400 | - | - | 3,400 | |||||||||||||||||||||||||||
Donated capital | - | - | - | - | - | - | 100 | - | 100 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (104,584 | ) | (104,584 | ) | |||||||||||||||||||||||||
Balance, December 31, 2009 | 4,000,000 | 4,000 | - | - | 3,400,000 | 3,400 | 100 | (104,584 | ) | (97,084 | ) | |||||||||||||||||||||||||
Proceeds from common stock subscription | - | - | 37,500 | 30,000 | - | - | - | - | 30,000 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (145,472 | ) | (145,472 | ) | |||||||||||||||||||||||||
Balance, December 31, 2010 | 4,000,000 | 4,000 | 37,500 | 30,000 | 3,400,000 | 3,400 | 100 | (250,056 | ) | (212,556 | ) | |||||||||||||||||||||||||
Sale of common stock | 153,125 | 153 | (37,500 | ) | (30,000 | ) | - | - | 122,347 | - | 92,500 | |||||||||||||||||||||||||
Common stock issued for services rendered | 408,113 | 408 | - | - | - | - | 326,082 | - | 326,490 | |||||||||||||||||||||||||||
Common stock issued for future services | 175,000 | 175 | - | - | - | - | 139,825 | - | 140,000 | |||||||||||||||||||||||||||
Common stock issued to founders | 3,400,000 | 3,400 | - | - | (3,400,000 | ) | (3,400 | ) | - | - | - | |||||||||||||||||||||||||
Preferred stock dividend | - | - | - | - | - | - | - | (26,892 | ) | (26,892 | ) | |||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (1,151,209 | ) | (1,151,209 | ) | |||||||||||||||||||||||||
Balance, December 31, 2011 | 8,136,238 | 8,136 | - | - | - | - | 588,354 | (1,428,157 | ) | (831,667 | ) | |||||||||||||||||||||||||
Common stock issued for services rendered | 30,000 | 30 | - | - | - | - | 59,970 | - | 60,000 | |||||||||||||||||||||||||||
Fair value of vested options | - | - | - | - | - | - | 185,323 | - | 185,323 | |||||||||||||||||||||||||||
Preferred stock dividend | - | - | - | - | - | - | - | (90,860 | ) | (90,860 | ) | |||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (2,386,142 | ) | (2,386,142 | ) | |||||||||||||||||||||||||
Balance, December 31, 2012 | 8,166,238 | $ | 8,166 | - | $ | - | $ | - | $ | - | $ | 833,647 | $ | (3,905,159 | ) | $ | (3,063,346 | ) | ||||||||||||||||||
BIOSIG TECHNOLOGIES, INC. | ||||||||||||
(a development stage company) | ||||||||||||
STATEMENTS OF OPERATIONS | ||||||||||||
From February 24, | ||||||||||||
2009 (date of | ||||||||||||
Year ended December 31, | inception) to | |||||||||||
2013 | 2012 | December 31, 2013 | ||||||||||
Operating expenses: | ||||||||||||
Research and development | $ | 992,207 | $ | 888,948 | $ | 2,463,680 | ||||||
General and administrative | 5,229,252 | 1,363,007 | 7,326,442 | |||||||||
Depreciation | 17,059 | 10,020 | 33,874 | |||||||||
Total operating expenses | 6,238,518 | 2,261,975 | 9,823,996 | |||||||||
Net loss from operations | (6,238,518 | ) | (2,261,975 | ) | (9,823,996 | ) | ||||||
Other income (expense): | ||||||||||||
Interest income (expense) | (70,061 | ) | (18,286 | ) | (88,176 | ) | ||||||
Financing costs | (3,496,052 | ) | (105,881 | ) | (3,679,866 | ) | ||||||
Net loss before income taxes | (9,804,631 | ) | (2,386,142 | ) | (13,592,038 | ) | ||||||
Income taxes (benefit) | - | - | - | |||||||||
Net loss | (9,804,631 | ) | (2,386,142 | ) | (13,592,038 | ) | ||||||
Preferred stock dividend | (297,215 | ) | (90,860 | ) | (414,967 | ) | ||||||
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS | $ | (10,101,846 | ) | $ | (2,477,002 | ) | $ | (14,007,005 | ) | |||
Net loss per common share, basic and diluted | $ | (1.23 | ) | $ | (0.30 | ) | ||||||
Weighted average number of common shares outstanding, basic and diluted | 8,187,648 | 8,142,222 |
BIOSIG TECHNOLOGIES, INC. | ||||||||||||
(a development stage company) | ||||||||||||
STATEMENTS OF CASH FLOWS | ||||||||||||
From February 24, | ||||||||||||
2009 (date of | ||||||||||||
Year ended December 31, | inception) to | |||||||||||
2012 | 2011 | December 31, 2012 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net loss attributable to common stockholders | $ | (2,386,142 | ) | $ | (1,151,209 | ) | $ | (3,787,407 | ) | |||
Adjustments to reconcile net loss to cash used in operating activities: | ||||||||||||
Depreciation | 10,020 | 6,795 | 16,815 | |||||||||
Amortization of financing costs | 105,881 | 77,933 | 183,814 | |||||||||
Stock based compensation | 314,316 | 384,372 | 706,088 | |||||||||
Donated capital | - | - | 100 | |||||||||
(Increase) in prepaid expenses | (20,000 | ) | - | (20,000 | ) | |||||||
Increase (Decrease) in accounts payable and accrued expenses | 450,969 | (158,385 | ) | 486,694 | ||||||||
Decease in accrued expenses, related party | - | (2,940 | ) | - | ||||||||
Increase in deferred rent payable | - | 5,067 | 5,067 | |||||||||
Net cash used in operating activities | (1,524,956 | ) | (838,367 | ) | (2,408,829 | ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Purchase of property and equipment | (15,477 | ) | (31,547 | ) | (47,024 | ) | ||||||
Payment of long term deposit | - | (25,000 | ) | (25,000 | ) | |||||||
Net cash used in investing activity | (15,477 | ) | (56,547 | ) | (72,024 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from notes payable, related party | 248,000 | 5,500 | 275,040 | |||||||||
Proceeds from convertible bridge notes payable | 600,000 | - | 600,000 | |||||||||
Net proceeds from the sale of Series A preferred stock | - | 788,400 | 788,400 | |||||||||
Net proceeds from the sale of Series B preferred stock | 647,650 | 71,500 | 719,150 | |||||||||
Proceeds from sale of common stock | - | 92,500 | 122,500 | |||||||||
Net cash provided by financing activities | 1,495,650 | 957,900 | 2,505,090 | |||||||||
Net (decrease) increase in cash and cash equivalents | (44,783 | ) | 62,986 | 24,237 | ||||||||
Cash and cash equivalents, beginning of the period | 69,020 | 6,034 | - | |||||||||
Cash and cash equivalents, end of the period | $ | 24,237 | $ | 69,020 | $ | 24,237 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid during the period for interest | $ | - | $ | - | $ | - | ||||||
Cash paid during the period for income taxes | $ | - | $ | - | $ | - |
BIOSIG TECHNOLOGIES, INC. | ||||||||||||||||||||||||||||||||||||
(a development stage company) | ||||||||||||||||||||||||||||||||||||
STATEMENT OF STOCKHOLDERS' DEFICIT | ||||||||||||||||||||||||||||||||||||
FROM FEBRUARY 24, 2009 (DATE OF INCEPTION) THROUGH DECEMBER 31, 2013 | ||||||||||||||||||||||||||||||||||||
Deficit | ||||||||||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||||||||||
Additional | During | |||||||||||||||||||||||||||||||||||
Common stock | Shares subscribed | Shares to be issued | Paid in | Development | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Stage | Total | ||||||||||||||||||||||||||||
Common stock issued to founders | 4,000,000 | $ | 4,000 | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 4,000 | ||||||||||||||||||||
Common stock issuable to founders | - | - | - | - | 3,400,000 | 3,400 | - | - | 3,400 | |||||||||||||||||||||||||||
Donated capital | - | - | - | - | - | - | 100 | - | 100 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (104,584 | ) | (104,584 | ) | |||||||||||||||||||||||||
Balance, December 31, 2009 | 4,000,000 | 4,000 | - | - | 3,400,000 | 3,400 | 100 | (104,584 | ) | (97,084 | ) | |||||||||||||||||||||||||
Proceeds from common stock subscription | - | - | 37,500 | 30,000 | - | - | - | - | 30,000 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (145,472 | ) | (145,472 | ) | |||||||||||||||||||||||||
Balance, December 31, 2010 | 4,000,000 | 4,000 | 37,500 | 30,000 | 3,400,000 | 3,400 | 100 | (250,056 | ) | (212,556 | ) | |||||||||||||||||||||||||
Sale of common stock | 153,125 | 153 | (37,500 | ) | (30,000 | ) | - | - | 122,347 | - | 92,500 | |||||||||||||||||||||||||
Common stock issued for services rendered | 408,113 | 408 | - | - | - | - | 326,082 | - | 326,490 | |||||||||||||||||||||||||||
Common stock issued for future services | 175,000 | 175 | - | - | - | - | 139,825 | - | 140,000 | |||||||||||||||||||||||||||
Common stock issued to founders | 3,400,000 | 3,400 | - | - | (3,400,000 | ) | (3,400 | ) | - | - | - | |||||||||||||||||||||||||
Preferred stock dividend | - | - | - | - | - | - | - | (26,892 | ) | (26,892 | ) | |||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (1,151,209 | ) | (1,151,209 | ) | |||||||||||||||||||||||||
Balance, December 31, 2011 | 8,136,238 | 8,136 | - | - | - | - | 588,354 | (1,428,157 | ) | (831,667 | ) | |||||||||||||||||||||||||
Common stock issued for services rendered | 30,000 | 30 | - | - | - | - | 59,970 | - | 60,000 | |||||||||||||||||||||||||||
Fair value of vested options | - | - | - | - | - | - | 185,323 | - | 185,323 | |||||||||||||||||||||||||||
Preferred stock dividend | - | - | - | - | - | - | - | (90,860 | ) | (90,860 | ) | |||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (2,386,142 | ) | (2,386,142 | ) | |||||||||||||||||||||||||
Balance, December 31, 2012 | 8,166,238 | $ | 8,166 | - | $ | - | $ | - | $ | - | $ | 833,647 | $ | (3,905,159 | ) | $ | (3,063,346 | ) |
BIOSIG TECHNOLOGIES, INC. | ||||||||||||||||||||||||||||||||||||
(a development stage company) | ||||||||||||||||||||||||||||||||||||
STATEMENT OF STOCKHOLDERS' DEFICIT | ||||||||||||||||||||||||||||||||||||
FROM FEBRUARY 24, 2009 (DATE OF INCEPTION) THROUGH DECEMBER 31, 2013 | ||||||||||||||||||||||||||||||||||||
Deficit | ||||||||||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||||||||||
Additional | During | |||||||||||||||||||||||||||||||||||
Common stock | Shares subscribed | Shares to be issued | Paid in | Development | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Stage | Total | ||||||||||||||||||||||||||||
Balance, December 31, 2012 | 8,166,238 | $ | 8,166 | - | $ | - | $ | - | $ | - | $ | 833,647 | $ | (3,905,159 | ) | $ | (3,063,346 | ) | ||||||||||||||||||
Common stock issued for services rendered | 21,412 | 22 | - | - | - | - | 44,729 | - | 44,751 | |||||||||||||||||||||||||||
Common stock issued as payment for accrued interest to note holders at $2.09 per share | 8,941 | 9 | - | - | - | - | 18,668 | - | 18,677 | |||||||||||||||||||||||||||
Beneficial conversion feature in connection with note payable | - | - | - | - | - | - | 20,000 | - | 20,000 | |||||||||||||||||||||||||||
Beneficial conversion feature and warrants issued in connection with the Series C Preferred Stock | - | - | - | - | - | - | 2,404,830 | - | 2,404,830 | |||||||||||||||||||||||||||
Fair value of warrants issued to Series C investors for certificate of designation amendment | - | - | - | - | - | - | 1,074,833 | - | 1,074,833 | |||||||||||||||||||||||||||
Fair value of warrants issued for services | - | - | - | - | - | - | 916,677 | - | 916,677 | |||||||||||||||||||||||||||
Common stock issued in settlement of related party note and advances payable | 93,061 | 93 | - | - | - | - | 228,415 | - | 228,508 | |||||||||||||||||||||||||||
Sale of common stock | 122,449 | 122 | - | - | - | - | 247,052 | 247,174 | ||||||||||||||||||||||||||||
Fair value of vested options | - | - | - | - | - | - | 3,247,187 | - | 3,247,187 | |||||||||||||||||||||||||||
Preferred stock dividend | - | - | - | - | - | - | - | (297,215 | ) | (297,215 | ) | |||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | - | (9,804,631 | ) | (9,804,631 | ) | |||||||||||||||||||||||||
Balance, December 31, 2013 | 8,412,101 | $ | 8,412 | - | $ | - | $ | - | $ | - | $ | 9,036,038 | $ | (14,007,005 | ) | $ | (4,962,555 | ) |
BIOSIG TECHNOLOGIES, INC. | ||||||||||||
(a development stage company) | ||||||||||||
STATEMENTS OF CASH FLOWS | ||||||||||||
From February 24, | ||||||||||||
2009 (date of | ||||||||||||
Year ended December 31, | inception) to | |||||||||||
2013 | 2012 | December 31, 2013 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net loss attributable to common stockholders | $ | (9,804,631 | ) | $ | (2,386,142 | ) | $ | (13,592,038 | ) | |||
Adjustments to reconcile net loss to cash used in operating activities: | ||||||||||||
Depreciation | 17,059 | 10,020 | 33,874 | |||||||||
Amortization of debt discount | 2,441,220 | 105,881 | 2,625,034 | |||||||||
Stock based compensation | 3,305,063 | 314,316 | 4,011,151 | |||||||||
Fair value of warrants issued in connection with Series C preferred stock modification | 1,074,833 | - | 1,074,833 | |||||||||
Fair value of warrants issued for services | 837,243 | - | 837,243 | |||||||||
Donated capital | - | - | 100 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Prepaid expenses | 20,000 | (20,000 | ) | - | ||||||||
Accounts payable | 349,809 | 450,969 | 836,503 | |||||||||
Deferred rent payable | (3,055 | ) | - | 2,012 | ||||||||
Net cash used in operating activities | (1,762,459 | ) | (1,524,956 | ) | (4,171,288 | ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Purchase of property and equipment | (11,716 | ) | (15,477 | ) | (58,740 | ) | ||||||
Payment of long term deposit | - | - | (25,000 | ) | ||||||||
Net cash used in investing activity | (11,716 | ) | (15,477 | ) | (83,740 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from notes payable, related party | - | 248,000 | 275,040 | |||||||||
Proceeds from convertible bridge notes payable | - | 600,000 | 600,000 | |||||||||
Net proceeds from the sale of Series A preferred stock | - | - | 788,400 | |||||||||
Net proceeds from the sale of Series B preferred stock | - | 647,650 | 719,150 | |||||||||
Net proceeds from the sale of Series C preferred stock and warrants | 1,768,410 | 1,768,410 | ||||||||||
Proceeds from sale of common stock | 299,974 | - | 422,474 | |||||||||
Payments of related party notes | (30,000 | ) | - | (30,000 | ) | |||||||
Net proceeds from related party advances | 13,741 | - | 13,741 | |||||||||
Net cash provided by financing activities | 2,052,125 | 1,495,650 | 4,557,215 | |||||||||
Net (decrease) increase in cash and cash equivalents | 277,950 | (44,783 | ) | 302,187 | ||||||||
Cash and cash equivalents, beginning of the period | 24,237 | 69,020 | - | |||||||||
Cash and cash equivalents, end of the period | $ | 302,187 | $ | 24,237 | $ | 302,187 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid during the period for interest | $ | - | $ | - | $ | - | ||||||
Cash paid during the period for income taxes | $ | - | $ | - | $ | - | ||||||
Non cash investing and financing activities: | ||||||||||||
Common stock issued in settlement of accrued interest | $ | 18,677 | $ | - | $ | 18,677 | ||||||
Common stock issued in settlement of related party note and advances payable | $ | 228,508 | $ | - | $ | 228,508 | ||||||
Convertible bridge notes payable exchanged for preferred shares | $ | 600,000 | $ | - | $ | 600,000 |
2013 | 2012 | |||||||
Series A convertible preferred stock | 501,089 | |||||||
Series B convertible preferred stock | 451,726 | |||||||
Series C convertible preferred stock | 1,330,627 | |||||||
Options to purchase common stock | 2,990,977 | 1,298,927 | ||||||
Warrants to purchase common stock | 2,717,258 | - | ||||||
Totals | 7,991,677 | 1,298,927 |
2013 | 2012 | |||||||
Computer equipment | $ | 50,937 | $ | 39,221 | ||||
Furniture and fixtures | 7,803 | 7,803 | ||||||
Subtotal | 58,740 | 47,024 | ||||||
Less accumulated depreciation | (33,874 | ) | (16,815 | ) | ||||
Property and equipment, net | $ | 24,866 | $ | 30,209 |
2012 | 2011 | |||||||
Computer equipment | $ | 39,221 | $ | 24,735 | ||||
Furniture and fixtures | 7,803 | 6,813 | ||||||
Total | 47,024 | 31,548 | ||||||
Less accumulated depreciation | (16,815 | ) | (6,795 | ) | ||||
$ | 30,209 | $ | 24,752 |
2013 | 2012 | |||||||
Accrued accounting and legal | $ | 300,893 | $ | 120,922 | ||||
Accrued reimbursements | 17,797 | 44,338 | ||||||
Accrued consulting | 214,481 | 111,546 | ||||||
Accrued research and development expenses | 64,670 | 68,120 | ||||||
Accrued credit card obligations | 20,425 | 21,844 | ||||||
Accrued payroll | 35,896 | 101,621 | ||||||
Accrued liquidated damages | 48,668 | - | ||||||
Accrued office and other | 16,500 | - | ||||||
Accrued interest | - | 4,491 | ||||||
Accrued settlement related to arbitration | 100,000 | - | ||||||
$ | 819,330 | $ | 472,882 |
2012 | 2011 | |||||||
Accrued accounting and legal | $ | 120,922 | $ | 35,725 | ||||
Accrued reimbursements | 44,338 | - | ||||||
Accrued consulting | 111,546 | - | ||||||
Accrued research and development expenses | 68,120 | - | ||||||
Accrued credit card obligations | 21,844 | - | ||||||
Accrued payroll | 101,621 | - | ||||||
Accrued interest | 4,491 | - | ||||||
$ | 472,882 | $ | 35,725 |
Options Outstanding | Options Exercisable | Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||||||||||||
Weighted Average | Weighted | Weighted | Weighted Average | Weighted | Weighted | |||||||||||||||||||||||||||||||||||||||
Prices | Prices | Outstanding | (Years) | Price | Exercisable | Price | Prices | Outstanding | (Years) | Price | Exercisable | Price | ||||||||||||||||||||||||||||||||
$ | 2.00 | 1,273,927 | 6.57 | $ | 2.00 | - | $ | 2.00 | 2.00 | 1,273,927 | 5.63 | $ | 2.00 | 250,821 | $ | 2.00 | ||||||||||||||||||||||||||||
2.09 | 1,218,300 | 6.09 | 2.09 | 1,061,364 | 2.09 | |||||||||||||||||||||||||||||||||||||||
2,492,227 | 6.85 | 2.04 | 1,312,185 | 2.07 |
Number of Shares | Weighted Average Price Per Share | Number of Shares | Weighted Average Price Per Share | |||||||||||||
Outstanding at December 31, 2010: | - | $ | - | |||||||||||||
Granted | - | - | ||||||||||||||
Exercised | - | - | ||||||||||||||
Expired | - | - | ||||||||||||||
Outstanding at December 31, 2011: | - | - | - | $ | - | |||||||||||
Granted | 1,273,927 | 2.00 | 1,273,927 | 2.00 | ||||||||||||
Exercised | - | - | - | - | ||||||||||||
Expired | - | - | - | - | ||||||||||||
Outstanding at December 31, 2012: | 1,273,927 | $ | 2.00 | 1,273,927 | 2.00 | |||||||||||
Granted | 1,218,300 | 2.09 | ||||||||||||||
Exercised | - | - | ||||||||||||||
Expired | - | - | ||||||||||||||
Outstanding at December 31, 2013: | 2,492,227 | $ | 2.04 |
Dividend yield: | -0- | % | ||
Volatility | 108.60% to 111.78 | % | ||
Risk free rate: | 0.97% to 1.14 | % | ||
Expected life: | 7 years | |||
Estimated fair value of the Company’s common stock | $2.00 |
Dividend yield: | -0- | % | ||
Volatility | 110.70% to 115.03 % | |||
Risk free rate: | 1.07% to 1.25 % | |||
Expected life: | 7 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
Options Outstanding | Options Exercisable | Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||||||||||||
Weighted Average | Weighted | Weighted | Weighted Average | Weighted | Weighted | |||||||||||||||||||||||||||||||||||||||
Prices | Prices | Outstanding | (Years) | Price | Exercisable | Price | Prices | Outstanding | (Years) | Price | Exercisable | Price | ||||||||||||||||||||||||||||||||
$ | 2.00 | 25,000 | 6.72 | $ | 2.00 | 25,000 | $ | 2.00 | 2.00 | 25,000 | 5.73 | $ | 2.00 | 25,000 | $ | 2.00 | ||||||||||||||||||||||||||||
2.09 | 473,750 | 7.04 | 2.09 | 338,473 | 2.09 | |||||||||||||||||||||||||||||||||||||||
498,750 | 6.97 | 2.09 | 363,473 | 2.08 |
Number of Shares | Weighted Average Price Per Share | Number of Shares | Weighted Average Price Per Share | |||||||||||||
Outstanding at December 31, 2010: | - | $ | - | |||||||||||||
Granted | - | - | ||||||||||||||
Exercised | - | - | ||||||||||||||
Expired | - | - | ||||||||||||||
Outstanding at December 31, 2011: | - | - | - | $ | - | |||||||||||
Granted | 25,000 | 2.00 | 25,000 | 2.00 | ||||||||||||
Exercised | - | - | - | - | ||||||||||||
Expired | - | - | - | - | ||||||||||||
Outstanding at December 31, 2012: | 25,000 | $ | 2.00 | 25,000 | 2.00 | |||||||||||
Granted | 473,750 | 2.09 | ||||||||||||||
Exercised | - | - | ||||||||||||||
Expired | - | - | ||||||||||||||
Outstanding at December 31, 2013: | 498,750 | $ | 2.09 |
Dividend yield: | -0- | % | ||
Volatility | 111.78 | % | ||
Risk free rate: | 0.97 | % | ||
Expected term: | 7 years | |||
Estimated fair value of the Company’s common stock | $ | 2.00 |
Dividend yield: | -0- | % | ||
Volatility | 111.78 | % | ||
Risk free rate: | 0.97 | % | ||
Expected term: | 7 years | |||
Estimated fair value of the Company’s common stock | $ | 2.00 |
Dividend yield: | -0- | % | ||
Volatility | 110.18% to 121.59 % | |||
Risk free rate: | 1.23% to 3.04 % | |||
Expected term: | 7 to 10 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||
Weighted Average | Weighted | Weighted | ||||||||||||||||||||
Prices | Outstanding | (Years) | Price | Exercisable | Price | |||||||||||||||||
$ | 0.001 | 383,320 | 6.02 | $ | 0.001 | 383,320 | $ | 0.001 | ||||||||||||||
1.84 | 35,076 | 6.05 | 1.84 | 35,076 | 1.84 | |||||||||||||||||
2.02 | 30,755 | 6.05 | 2.02 | 30,755 | 2.02 | |||||||||||||||||
2.61 | 2,138,800 | 4.36 | 2.61 | 2,138,800 | 2.61 | |||||||||||||||||
3.67 | 129,307 | 5.00 | 3.67 | 129,307 | 3.67 | |||||||||||||||||
2,717,258 | 4.66 | 2.23 | 2,717,258 | 2.28 |
Number of Shares | Weighted Average Price Per Share | |||||||
Outstanding at December 31, 2011: | - | $ | - | |||||
Granted | - | - | ||||||
Exercised | - | - | ||||||
Expired | - | - | ||||||
Outstanding at December 31, 2012: | - | - | ||||||
Granted | 2,717,258 | 2.28 | ||||||
Exercised | - | - | ||||||
Expired | - | - | ||||||
Outstanding at December 31, 2013: | 2,717,258 | $ | 2.28 |
Dividend yield: | -0- | % | ||
Volatility | 114.99 | % | ||
Risk free rate: | 1.31 | % | ||
Expected life: | 7 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
Dividend yield: | -0- | % | ||
Volatility | 123.30 | % | ||
Risk free rate: | 0.72 | % | ||
Expected life: | 5 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
Dividend yield: | -0- | % | ||
Volatility | 125.33 | % | ||
Risk free rate: | 1.40 | % | ||
Expected life: | 5 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
2012 | 2011 | |||||||||||||||
2013 | 2012 | |||||||||||||||
Net loss available to Common stockholders | $ | (2,477,002 | ) | $ | (1,178,101 | ) | $ | (10,101,846 | ) | $ | (2,477,002 | ) | ||||
Basic and diluted earnings (loss) per share | $ | (0.30 | ) | $ | (0.18 | ) | $ | (1.23 | ) | $ | (0.30 | ) | ||||
Weighted average common shares outstanding | 8,142,222 | 6,650,026 | 8,187.648 | 8,142,222 |
Year Ending December 31, | ||||||||
2013 | $ | 63,256 | ||||||
2014 | 44,304 | $ | 43,504 | |||||
$ | 107,560 |
2013 | 2012 | |||||||
Series A convertible preferred stock | 501,089 | |||||||
Series B convertible preferred stock | 451,726 | |||||||
Series C convertible preferred stock | 1,330,627 | |||||||
Options to purchase common stock | 2,990,977 | 1,298,927 | ||||||
Warrants to purchase common stock | 2,717,258 | - | ||||||
Totals | 7,991,677 | 1,298,927 |
2013 | 2012 | |||||||
Computer equipment | $ | 50,937 | $ | 39,221 | ||||
Furniture and fixtures | 7,803 | 7,803 | ||||||
Subtotal | 58,740 | 47,024 | ||||||
Less accumulated depreciation | (33,874 | ) | (16,815 | ) | ||||
Property and equipment, net | $ | 24,866 | $ | 30,209 |
2013 | 2012 | |||||||
Accrued accounting and legal | $ | 300,893 | $ | 120,922 | ||||
Accrued reimbursements | 17,797 | 44,338 | ||||||
Accrued consulting | 214,481 | 111,546 | ||||||
Accrued research and development expenses | 64,670 | 68,120 | ||||||
Accrued credit card obligations | 20,425 | 21,844 | ||||||
Accrued payroll | 35,896 | 101,621 | ||||||
Accrued liquidated damages | 48,668 | - | ||||||
Accrued office and other | 16,500 | - | ||||||
Accrued interest | - | 4,491 | ||||||
Accrued settlement related to arbitration | 100,000 | - | ||||||
$ | 819,330 | $ | 472,882 |
Options Outstanding | Options Exercisable | |||||||||||||||||||||
Weighted Average | Weighted | Weighted | ||||||||||||||||||||
Prices | Outstanding | (Years) | Price | Exercisable | Price | |||||||||||||||||
$ | 2.00 | 1,273,927 | 5.63 | $ | 2.00 | 250,821 | $ | 2.00 | ||||||||||||||
2.09 | 1,218,300 | 6.09 | 2.09 | 1,061,364 | 2.09 | |||||||||||||||||
2,492,227 | 6.85 | 2.04 | 1,312,185 | 2.07 |
Number of Shares | Weighted Average Price Per Share | |||||||
Outstanding at December 31, 2011: | - | $ | - | |||||
Granted | 1,273,927 | 2.00 | ||||||
Exercised | - | - | ||||||
Expired | - | - | ||||||
Outstanding at December 31, 2012: | 1,273,927 | 2.00 | ||||||
Granted | 1,218,300 | 2.09 | ||||||
Exercised | - | - | ||||||
Expired | - | - | ||||||
Outstanding at December 31, 2013: | 2,492,227 | $ | 2.04 |
Dividend yield: | -0- | % | ||
Volatility | 108.60% to 111.78 | % | ||
Risk free rate: | 0.97% to 1.14 | % | ||
Expected life: | 7 years | |||
Estimated fair value of the Company’s common stock | $2.00 |
Dividend yield: | -0- | % | ||
Volatility | 110.70% to 115.03 % | |||
Risk free rate: | 1.07% to 1.25 % | |||
Expected life: | 7 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
Options Outstanding | Options Exercisable | |||||||||||||||||||||
Weighted Average | Weighted | Weighted | ||||||||||||||||||||
Prices | Outstanding | (Years) | Price | Exercisable | Price | |||||||||||||||||
$ | 2.00 | 25,000 | 5.73 | $ | 2.00 | 25,000 | $ | 2.00 | ||||||||||||||
2.09 | 473,750 | 7.04 | 2.09 | 338,473 | 2.09 | |||||||||||||||||
498,750 | 6.97 | 2.09 | 363,473 | 2.08 |
Number of Shares | Weighted Average Price Per Share | |||||||
Outstanding at December 31, 2011: | - | $ | - | |||||
Granted | 25,000 | 2.00 | ||||||
Exercised | - | - | ||||||
Expired | - | - | ||||||
Outstanding at December 31, 2012: | 25,000 | 2.00 | ||||||
Granted | 473,750 | 2.09 | ||||||
Exercised | - | - | ||||||
Expired | - | - | ||||||
Outstanding at December 31, 2013: | 498,750 | $ | 2.09 |
Dividend yield: | -0- | % | ||
Volatility | 111.78 | % | ||
Risk free rate: | 0.97 | % | ||
Expected term: | 7 years | |||
Estimated fair value of the Company’s common stock | $ | 2.00 |
Dividend yield: | -0- | % | ||
Volatility | 110.18% to 121.59 % | |||
Risk free rate: | 1.23% to 3.04 % | |||
Expected term: | 7 to 10 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||
Weighted Average | Weighted | Weighted | ||||||||||||||||||||
Prices | Outstanding | (Years) | Price | Exercisable | Price | |||||||||||||||||
$ | 0.001 | 383,320 | 6.02 | $ | 0.001 | 383,320 | $ | 0.001 | ||||||||||||||
1.84 | 35,076 | 6.05 | 1.84 | 35,076 | 1.84 | |||||||||||||||||
2.02 | 30,755 | 6.05 | 2.02 | 30,755 | 2.02 | |||||||||||||||||
2.61 | 2,138,800 | 4.36 | 2.61 | 2,138,800 | 2.61 | |||||||||||||||||
3.67 | 129,307 | 5.00 | 3.67 | 129,307 | 3.67 | |||||||||||||||||
2,717,258 | 4.66 | 2.23 | 2,717,258 | 2.28 |
Number of Shares | Weighted Average Price Per Share | |||||||
Outstanding at December 31, 2011: | - | $ | - | |||||
Granted | - | - | ||||||
Exercised | - | - | ||||||
Expired | - | - | ||||||
Outstanding at December 31, 2012: | - | - | ||||||
Granted | 2,717,258 | 2.28 | ||||||
Exercised | - | - | ||||||
Expired | - | - | ||||||
Outstanding at December 31, 2013: | 2,717,258 | $ | 2.28 |
Dividend yield: | -0- | % | ||
Volatility | 114.99 | % | ||
Risk free rate: | 1.31 | % | ||
Expected life: | 7 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
(a development stage company) | ||||||||
CONDENSED BALANCE SHEETS | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 65,481 | $ | 24,237 | ||||
Prepaid expenses | 20,000 | 33,125 | ||||||
Capitalized financing costs | - | 212,635 | ||||||
Total current assets | 85,481 | 269,997 | ||||||
Property and equipment, net | 29,501 | 30,209 | ||||||
Other assets: | ||||||||
Deposits | 25,000 | 25,000 | ||||||
Total assets | $ | 139,982 | $ | 325,206 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 302,501 | $ | 472,882 | ||||
Advances, related party | 10,500 | 27,040 | ||||||
Note payable, related party | - | 30,000 | ||||||
Liability to placement agent | - | 94,500 | ||||||
Dividends payable | 329,076 | 117,751 | ||||||
Total current liabilities | 642,078 | 742,173 | ||||||
Long term liabilities: | ||||||||
Deferred rent payable | 5,067 | 5,067 | ||||||
Note payable, related party | 218,000 | 218,000 | ||||||
Convertible bridge notes payable, $229,359 related party | - | 613,812 | ||||||
Redeemable Series A Preferred Stock, liquidation preference of $922,000, net of debt discount of $47,764 | 874,236 | 922,000 | ||||||
Redeemable Series B Preferred Stock, liquidation preference of $887,500, net of debt discount of $91,602 | 795,898 | 887,500 | ||||||
Total long term liabilities | 1,893,201 | 2,646,379 | ||||||
Total liabilities | 2,535,279 | 3,388,552 | ||||||
Series C 9% Convertible Preferred stock, liquidation preference of $2,781,000, net of debt discount of $1,184,858 | 1,596,142 | - | ||||||
Stockholders' deficit | ||||||||
Preferred stock, $0.001 par value, authorized 1,000,000 shares, designated 200 shares of Series A, 600 shares of Series B and 4,200 shares of Series C Preferred Stock | ||||||||
Common stock, $0.001 par value, authorized 50,000,000 shares, 8,196,591 and 8,166,238 issued and outstanding as of September 30, 2013 and December 31, 2012, respectively | 8,197 | 8,166 | ||||||
Additional paid in capital | 8,260,999 | 833,647 | ||||||
Deficit accumulated during development stage | (12,260,634 | ) | (3,905,159 | ) | ||||
Total stockholders' deficit | (3,991,438 | ) | (3,063,346 | ) | ||||
Total liabilities and stockholders' deficit | $ | 139,982 | $ | 325,206 | ||||
See the accompanying notes to the unaudited condensed financial statements |
BIOSIG TECHNOLOGIES, INC. | ||||||||||||||||||||
(a development stage company) | ||||||||||||||||||||
CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
From February 24, | ||||||||||||||||||||
2009 (date of | ||||||||||||||||||||
Three months ended | Nine months ended | inception) to | ||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | $ | 289,964 | $ | 290,892 | $ | 774,810 | $ | 815,273 | $ | 2,246,283 | ||||||||||
General and administrative | 509,285 | 342,496 | 4,570,716 | 640,053 | 6,667,906 | |||||||||||||||
Depreciation | 4,473 | 3,386 | 12,424 | 9,077 | 29,239 | |||||||||||||||
Total operating expenses | 803,722 | 636,774 | 5,357,950 | 1,464,403 | 8,943,428 | |||||||||||||||
Net loss from operations | (803,722 | ) | (636,774 | ) | (5,357,950 | ) | (1,464,403 | ) | (8,943,428 | ) | ||||||||||
Other income (expense): | ||||||||||||||||||||
Interest income (expense) | (69 | ) | 3 | (20,604 | ) | 17 | (38,719 | ) | ||||||||||||
Financing costs | (1,790,533 | ) | (26,471 | ) | (2,765,599 | ) | (79,411 | ) | (2,949,413 | ) | ||||||||||
Net loss before income taxes | (2,594,324 | ) | (663,242 | ) | (8,144,152 | ) | (1,543,797 | ) | (11,931,559 | ) | ||||||||||
Income taxes (benefit) | - | - | - | - | - | |||||||||||||||
Net loss | (2,594,324 | ) | (663,242 | ) | (8,144,152 | ) | (1,543,797 | ) | (11,931,559 | ) | ||||||||||
Preferred stock dividend | (84,563 | ) | (22,805 | ) | (211,323 | ) | (68,055 | ) | (329,075 | ) | ||||||||||
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS | $ | (2,678,887 | ) | $ | (686,047 | ) | $ | (8,355,475 | ) | $ | (1,611,852 | ) | $ | (12,260,634 | ) | |||||
Net loss per common share, basic and diluted | $ | (0.33 | ) | $ | (0.08 | ) | $ | (1.02 | ) | $ | (0.20 | ) | ||||||||
Weighted average number of common shares outstanding, basic and diluted | 8,192,898 | 8,144,553 | 8,184,634 | 8,139,030 | ||||||||||||||||
See the accompanying notes to the unaudited condensed financial statements |
Dividend yield: | -0- | % | ||
Volatility | 123.30 | % | ||
Risk free rate: | 0.72 | % | ||
Expected life: | 5 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
Dividend yield: | -0- | % | ||
Volatility | 125.33 | % | ||
Risk free rate: | 1.40 | % | ||
Expected life: | 5 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
2013 | 2012 | |||||||
Net loss available to Common stockholders | $ | (10,101,846 | ) | $ | (2,477,002 | ) | ||
Basic and diluted earnings (loss) per share | $ | (1.23 | ) | $ | (0.30 | ) | ||
Weighted average common shares outstanding | 8,187.648 | 8,142,222 |
BIOSIG TECHNOLOGIES, INC. | ||||||||||||||||||||
(a development stage company) | ||||||||||||||||||||
STATEMENT OF STOCKHOLDERS' DEFICIT | ||||||||||||||||||||
FROM JANUARY 1, 2013 TO SEPTEMBER 30, 2013 | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Deficit | ||||||||||||||||||||
Accumulated | ||||||||||||||||||||
Additional | During | |||||||||||||||||||
Common stock | Paid in | Development | ||||||||||||||||||
Shares | Amount | Capital | Stage | Total | ||||||||||||||||
Balance, December 31, 2012 | 8,166,238 | $ | 8,166 | $ | 833,647 | $ | (3,905,159 | ) | $ | (3,063,346 | ) | |||||||||
Common stock issued for services rendered | 21,412 | 22 | 44,729 | - | 44,751 | |||||||||||||||
Common stock issued as payment for accrued interest to note holders at $2.09 per share | 8,941 | 9 | 18,668 | - | 18,677 | |||||||||||||||
Beneficial conversion feature in connection with note payable | - | - | 20,000 | - | 20,000 | |||||||||||||||
Beneficial conversion feature and warrants issued in connection with the Series C Preferred Stock | - | - | 2,404,830 | - | 2,404,830 | |||||||||||||||
Fair value of warrants issued to Series C investors for certificate of designation amendment | - | - | 1,074,833 | - | 1,074,833 | |||||||||||||||
Fair value of warrants issued for services | - | - | 916,677 | - | 916,677 | |||||||||||||||
Fair value of vested options | - | - | 2,947,615 | - | 2,947,615 | |||||||||||||||
Preferred stock dividend | - | - | - | (211,323 | ) | (211,323 | ) | |||||||||||||
Net loss | - | - | - | (8,144,152 | ) | (8,144,152 | ) | |||||||||||||
Balance, September 30, 2013 | 8,196,591 | $ | 8,197 | $ | 8,260,999 | $ | (12,260,634 | ) | $ | (3,991,438 | ) | |||||||||
See the accompanying notes to the unaudited condensed financial statements |
BIOSIG TECHNOLOGIES, INC. | ||||||||||||
(a development stage company) | ||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
(unaudited) | ||||||||||||
From February 24, | ||||||||||||
2009 (date of | ||||||||||||
Nine months ended | inception) to | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net loss attributable to common stockholders | $ | (8,144,152 | ) | $ | (1,543,797 | ) | $ | (11,931,559 | ) | |||
Adjustments to reconcile net loss to cash used in operating activities: | ||||||||||||
Depreciation | 12,424 | 9,077 | 29,239 | |||||||||
Amortization of debt discount | 1,710,766 | 79,411 | 1,894,580 | |||||||||
Stock based compensation | 3,005,491 | 150,152 | 3,711,579 | |||||||||
Fair value of warrants issued in connection with Series C preferred stock modification | 1,074,833 | - | 1,074,833 | |||||||||
Fair value of warrants issued for services | 837,243 | - | 837,243 | |||||||||
Donated capital | - | - | 100 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Prepaid expenses | - | - | (20,000 | ) | ||||||||
Accounts payable | (165,515 | ) | 121,996 | 321,179 | ||||||||
Deferred rent payable | - | - | 5,067 | |||||||||
Net cash used in operating activities | (1,668,910 | ) | (1,183,161 | ) | (4,077,739 | ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Purchase of property and equipment | (11,716 | ) | (12,179 | ) | (58,740 | ) | ||||||
Payment of long term deposit | - | - | (25,000 | ) | ||||||||
Net cash used in investing activity | (11,716 | ) | (12,179 | ) | (83,740 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from notes payable, related party | - | - | 275,040 | |||||||||
Proceeds from convertible bridge notes payable | - | 330,000 | 600,000 | |||||||||
Net proceeds from the sale of Series A preferred stock | - | - | 788,400 | |||||||||
Net proceeds from the sale of Series B preferred stock | - | 647,650 | 719,150 | |||||||||
Net proceeds from the sale of Series C preferred stock and warrants | 1,768,410 | 1,768,410 | ||||||||||
Proceeds from sale of common stock | - | - | 122,500 | |||||||||
Payments of related party notes | (30,000 | ) | - | (30,000 | ) | |||||||
Payments of related party advances | (16,540 | ) | 160,500 | (16,540 | ) | |||||||
Net cash provided by financing activities | 1,721,870 | 1,138,150 | 4,226,960 | |||||||||
Net (decrease) increase in cash and cash equivalents | 41,244 | (57,190 | ) | 65,481 | ||||||||
Cash and cash equivalents, beginning of the period | 24,237 | 69,020 | - | |||||||||
Cash and cash equivalents, end of the period | $ | 65,481 | $ | 11,830 | $ | 65,481 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid during the period for interest | $ | - | $ | - | $ | - | ||||||
Cash paid during the period for income taxes | $ | - | $ | - | $ | - | ||||||
Non cash investing and financing activities: | ||||||||||||
Common stock issued in settlement of accrued interest | $ | 18,677 | $ | - | $ | 18,677 | ||||||
Convertible bridge notes payable exchanged for preferred shares | $ | 600,000 | $ | - | $ | 600,000 | ||||||
See the accompanying notes to the unaudited condensed financial statements |
2013 | 2012 | |||||||
Series A convertible preferred stock | 501,089 | |||||||
Series B convertible preferred stock | 451,726 | |||||||
Series C convertible preferred stock | 1,330,627 | |||||||
Options to purchase common stock | 2,990,977 | 1,298,927 | ||||||
Warrants to purchase common stock | 2,717,258 | - | ||||||
Totals | 7,991,677 | 1,298,927 |
September 30, 2013 | December 31, 2012 | 2013 | 2012 | |||||||||||||
Computer equipment | $ | 50,937 | $ | 39,221 | $ | 50,937 | $ | 39,221 | ||||||||
Furniture and fixtures | 7,803 | 7,803 | 7,803 | 7,803 | ||||||||||||
Subtotal | 58,740 | 47,024 | 58,740 | 47,024 | ||||||||||||
Less accumulated depreciation | (29,239 | ) | (16,815 | ) | (33,874 | ) | (16,815 | ) | ||||||||
Property and equipment, net | $ | 29,501 | $ | 30,209 | $ | 24,866 | $ | 30,209 |
2013 | 2012 | |||||||
Accrued accounting and legal | $ | 300,893 | $ | 120,922 | ||||
Accrued reimbursements | 17,797 | 44,338 | ||||||
Accrued consulting | 214,481 | 111,546 | ||||||
Accrued research and development expenses | 64,670 | 68,120 | ||||||
Accrued credit card obligations | 20,425 | 21,844 | ||||||
Accrued payroll | 35,896 | 101,621 | ||||||
Accrued liquidated damages | 48,668 | - | ||||||
Accrued office and other | 16,500 | - | ||||||
Accrued interest | - | 4,491 | ||||||
Accrued settlement related to arbitration | 100,000 | - | ||||||
$ | 819,330 | $ | 472,882 |
Options Outstanding | Options Exercisable | Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||||||||||||
Weighted Average | Weighted | Weighted | Weighted Average | Weighted | Weighted | |||||||||||||||||||||||||||||||||||||||
Prices | Prices | Outstanding | (Years) | Price | Exercisable | Price | Prices | Outstanding | (Years) | Price | Exercisable | Price | ||||||||||||||||||||||||||||||||
$ | 2.00 | 1,273,927 | 5.82 | $ | 2.00 | 250,821 | $ | 2.00 | 2.00 | 1,273,927 | 5.63 | $ | 2.00 | 250,821 | $ | 2.00 | ||||||||||||||||||||||||||||
2.09 | 1,218,300 | 6.32 | 2.09 | 1,061,364 | 2.09 | 2.09 | 1,218,300 | 6.09 | 2.09 | 1,061,364 | 2.09 | |||||||||||||||||||||||||||||||||
2,492,227 | 6.06 | 2.04 | 1,312,185 | 2.07 | 2,492,227 | 6.85 | 2.04 | 1,312,185 | 2.07 |
Number of Shares | Weighted Average Price Per Share | Number of Shares | Weighted Average Price Per Share | |||||||||||||
Outstanding at December 31, 2011: | - | $ | - | - | $ | - | ||||||||||
Granted | 1,273,927 | 2.00 | 1,273,927 | 2.00 | ||||||||||||
Exercised | - | - | - | - | ||||||||||||
Expired | - | - | - | - | ||||||||||||
Outstanding at December 31, 2012: | 1,273,927 | 2.00 | 1,273,927 | 2.00 | ||||||||||||
Granted | 1,218,300 | 2.09 | 1,218,300 | 2.09 | ||||||||||||
Exercised | - | - | - | - | ||||||||||||
Expired | - | - | - | - | ||||||||||||
Outstanding at September 30, 2013: | 2,492,227 | $ | 2.04 | |||||||||||||
Outstanding at December 31, 2013: | 2,492,227 | $ | 2.04 |
Dividend yield: | -0- | % | ||
Volatility | 108.60% to 111.78 | % | ||
Risk free rate: | 0.97% to 1.14 | % | ||
Expected life: | 7 years | |||
Estimated fair value of the Company’s common stock | $2.00 |
Dividend yield: | -0- | % | ||
Volatility | 110.70% to 115.03 % | |||
Risk free rate: | 1.07% to 1.25 % | |||
Expected life: | 7 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
Options Outstanding | Options Exercisable | Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||||||||||||
Weighted Average | Weighted | Weighted | Weighted Average | Weighted | Weighted | |||||||||||||||||||||||||||||||||||||||
Prices | Prices | Outstanding | (Years) | Price | Exercisable | Price | Prices | Outstanding | (Years) | Price | Exercisable | Price | ||||||||||||||||||||||||||||||||
$ | 2.00 | 25,000 | 5.97 | $ | 2.00 | 25,000 | $ | 2.00 | 2.00 | 25,000 | 5.73 | $ | 2.00 | 25,000 | $ | 2.00 | ||||||||||||||||||||||||||||
2.09 | 473,750 | 9.33 | 2.09 | 345,486 | 2.09 | 2.09 | 473,750 | 7.04 | 2.09 | 338,473 | 2.09 | |||||||||||||||||||||||||||||||||
498,750 | 9.16 | 2.09 | 370,486 | 2.08 | 498,750 | 6.97 | 2.09 | 363,473 | 2.08 |
Number of Shares | Weighted Average Price Per Share | Number of Shares | Weighted Average Price Per Share | |||||||||||||
Outstanding at December 31, 2011: | - | $ | - | - | $ | - | ||||||||||
Granted | 25,000 | 2.00 | 25,000 | 2.00 | ||||||||||||
Exercised | - | - | - | - | ||||||||||||
Expired | - | - | - | - | ||||||||||||
Outstanding at December 31, 2012: | 25,000 | 2.00 | 25,000 | 2.00 | ||||||||||||
Granted | 473,750 | 2.09 | 473,750 | 2.09 | ||||||||||||
Exercised | - | - | - | - | ||||||||||||
Expired | - | - | - | - | ||||||||||||
Outstanding at September 30, 2013: | 498,750 | $ | 2.09 | |||||||||||||
Outstanding at December 31, 2013: | 498,750 | $ | 2.09 |
Dividend yield: | -0- | % | ||
Volatility | 111.78 | % | ||
Risk free rate: | 0.97 | % | ||
Expected term: | 7 years | |||
Estimated fair value of the Company’s common stock | $ | 2.00 |
Dividend yield: | -0- | % | -0- | % | ||||
Volatility | 110.18% to 115.03 % | 110.18% to 121.59 % | ||||||
Risk free rate: | 1.23% to 2.64 % | 1.23% to 3.04 % | ||||||
Expected term: | 7 to 10 years | 7 to 10 years | ||||||
Estimated fair value of the Company’s common stock | $ | 2.09 | $ | 2.09 |
Warrants Outstanding | Warrants Exercisable | Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||||||||||||||||||||||
Weighted Average | Weighted | Weighted | Weighted Average | Weighted | Weighted | |||||||||||||||||||||||||||||||||||||||
Prices | Prices | Outstanding | (Years) | Price | Exercisable | Price | Prices | Outstanding | (Years) | Price | Exercisable | Price | ||||||||||||||||||||||||||||||||
$ | 0.001 | 383,320 | 6.27 | $ | 0.001 | 383,320 | $ | 0.001 | 0.001 | 383,320 | 6.02 | $ | 0.001 | 383,320 | $ | 0.001 | ||||||||||||||||||||||||||||
1.84 | 35,076 | 4.29 | 1.84 | 35,076 | 1.84 | 1.84 | 35,076 | 6.05 | 1.84 | 35,076 | 1.84 | |||||||||||||||||||||||||||||||||
2.02 | 30,755 | 4.29 | 2.02 | 30,755 | 2.02 | 2.02 | 30,755 | 6.05 | 2.02 | 30,755 | 2.02 | |||||||||||||||||||||||||||||||||
2.61 | 2,138,800 | 4.65 | 2.61 | 2,138,800 | 2.61 | 2.61 | 2,138,800 | 4.36 | 2.61 | 2,138,800 | 2.61 | |||||||||||||||||||||||||||||||||
2,587,951 | 4.88 | 1.96 | 2,587,951 | 2.21 | 3.67 | 129,307 | 5.00 | 3.67 | 129,307 | 3.67 | ||||||||||||||||||||||||||||||||||
2,717,258 | 4.66 | 2.23 | 2,717,258 | 2.28 |
Number of Shares | Weighted Average Price Per Share | Number of Shares | Weighted Average Price Per Share | |||||||||||||
Outstanding at December 31, 2011: | - | $ | - | - | $ | - | ||||||||||
Granted | - | - | - | - | ||||||||||||
Exercised | - | - | - | - | ||||||||||||
Expired | - | - | - | - | ||||||||||||
Outstanding at December 31, 2012: | - | - | - | - | ||||||||||||
Granted | 2,587,951 | 2.21 | 2,717,258 | 2.28 | ||||||||||||
Exercised | - | - | - | - | ||||||||||||
Expired | - | - | - | - | ||||||||||||
Outstanding at June 30, 2013: | 2,587,951 | $ | 2.21 | |||||||||||||
Outstanding at December 31, 2013: | 2,717,258 | $ | 2.28 |
Dividend yield: | -0- | % | ||
Volatility | 114.99 | % | ||
Risk free rate: | 1.31 | % | ||
Expected life: | 7 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
Dividend yield: | -0- | % | ||
Volatility | 123.30 | % | ||
Risk free rate: | 0.72 | % | ||
Expected life: | 5 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
Dividend yield: | -0- | % | ||
Volatility | 125.33 | % | ||
Risk free rate: | 1.40 | % | ||
Expected life: | 5 years | |||
Estimated fair value of the Company’s common stock | $ | 2.09 |
2013 | 2012 | |||||||
Net loss available to Common stockholders | $ | (10,101,846 | ) | $ | (2,477,002 | ) | ||
Basic and diluted earnings (loss) per share | $ | (1.23 | ) | $ | (0.30 | ) | ||
Weighted average common shares outstanding | 8,187.648 | 8,142,222 |
Year Ending December 31, | ||||
2014 | $ | 43,504 |
Statutory rate on pre-tax book loss | (34.00 | )% | ||
Stock based compensation | 11.70 | % | ||
Financing costs | 2.40 | % | ||
Valuation allowance | 19.90 | % | ||
0.00 | % |
Non-Current deferred tax asset: | ||||
Net operating loss carry-forwards | $ | 1,400,000 | ||
Valuation allowance | (1,400,000 | ) | ||
Net non-current deferred tax asset | $ | - |
Securities and Exchange Commission Registration Fee | $ | 894.28 | ||
Accounting Fees and Expenses | $ | 12,500 | ||
Legal Fees and Expenses | 50,000 | |||
Printing Expenses | $ | 6,000 | ||
Miscellaneous Fees and Expenses | 2,605.72 | |||
Total | $ | 72,000 |
Exhibit No. | Description | |
3.1** | Amended and Restated Certificate of Incorporation | |
3.2** | Certificate of Amendment of the Amended and Restated Certificate of Incorporation (Amendment No. 1) | |
3.3** | Certificate of Amendment of the Amended and Restated Certificate of Incorporation (Amendment No. 2) | |
3.4** | By-Laws | |
3.5 ** | Certificate of Amendment of the Amended and Restated Certificate of Incorporation (Amendment No. 3) | |
3.6 | ||
5.1* | Opinion of Haynes and Boone, LLP | |
10.1** | BioSig Technologies, Inc. 2012 Equity Incentive Plan | |
10.2** | Form of Stock Option Agreement | |
10.3** | Securities Purchase Agreement, dated September 19, 2011, by and between BioSig Technologies, Inc. and certain purchasers set forth therein | |
10.4** | Securities Purchase Agreement, dated December 27, 2011, by and between BioSig Technologies, Inc. and certain purchasers set forth therein | |
Securities Purchase Agreement, dated February 6, 2013, by and between BioSig Technologies, Inc. and certain purchasers set forth therein | ||
Registration Rights Agreement, dated February 6, 2013, by and between BioSig Technologies, Inc. and certain purchasers set forth therein | ||
10.7** | Form of Warrant |
10.8** | Amendment Agreement No. 1 to Securities Purchase Agreement and Registration Rights Agreement, dated February 25, 2013, by and between BioSig Technologies, Inc. and certain purchasers set forth therein | |
10.9** | Amendment Agreement No. 2 to Securities Purchase Agreement, dated April 12, 2013, by and between BioSig Technologies, Inc. and certain purchasers set forth therein | |
10.10** | Amendment Agreement No. 3 to Securities Purchase Agreement and Registration Rights Agreement, dated June 25, 2013, by and between BioSig Technologies, Inc. and certain purchasers set forth therein | |
10.11** | Office Lease Agreement, dated August 9, 2011, by and between BioSig Technologies, Inc. and Douglas Emmett 1993, LLC | |
10.12** | Employment Agreement, dated March 1, 2013, by and between BioSig Technologies, Inc. and Kenneth Londoner | |
10.13** | Employment Agreement, dated March 1, 2013, by and between BioSig Technologies, Inc. and Budimir Drakulic | |
10.14** | Indemnity Agreement, dated May 2, 2013 by and between BioSig Technologies, Inc. and Seth H. Z. Fischer | |
10.15** | Consulting Agreement, dated August 1, 2012, by and between BioSig Technologies, Inc. and Asher Holzer | |
10.16** | Consulting Agreement, dated March 30, 2012, by and between BioSig Technologies, Inc. and Mauricio Arruda | |
10.17** | Consulting Agreement, dated February 12, 2013, by and between BioSig Technologies, Inc. and Rony Shimony | |
10.18** | Consulting Agreement, dated April 1, 2013, by and between BioSig Technologies, Inc. and Vivek Reddy |
10.19** | Unsecured Promissory Note made by BioSig Technologies, Inc. in favor of Kenneth Londoner, dated November 21, 2012 | ||
10.20** | Form of Bridge Note | ||
10.21** | Promissory Note made by BioSig Technologies, Inc. in favor of Kenneth Londoner, dated December 6, 2012 | ||
Employment Agreement, dated September 10, 2013, by and between BioSig Technologies, Inc. and David J. Drachman | |||
10.23 ** | Amendment Agreement No. 4 to Securities Purchase Agreement, dated October 14, 2013, by and between BioSig Technologies, Inc. and certain purchasers set forth therein | ||
10.24 ** | Securities Purchase Agreement, dated December 31, 2013, by and between BioSig Technologies, Inc. and certain purchasers set forth therein | ||
10.25 ** | Registration Rights Agreement, dated December 31, 2013, by and between BioSig Technologies, Inc. and certain purchasers set forth therein | ||
10.26 ** | Form of Warrant | ||
10.27 | |||
16.1** | Letter of Rosenberg Rich Baker Berman & Company, dated July 22, 2013 | ||
23.1 | |||
23.2 | |||
23.3* | Consent of Haynes and Boone, LLP (included in Exhibit 5.1) | ||
24.1** | Power of Attorney (included on signature page) |
BIOSIG TECHNOLOGIES, INC. | ||
By: | /s/ Kenneth | |
Name: Kenneth | ||
Title: Executive Chairman |
Signature | Title | Date | ||
/s/ Kenneth | Executive Chairman and Director | March 28, 2014 | ||
Kenneth L. Londoner | (principal executive officer) | |||
* | Chief Financial Officer | |||
Steve Chaussy | (principal financial and accounting officer) | |||
* | Director | |||
Asher Holzer | ||||
* | Director | March 28, 2014 | ||
Kalyanam Shivkumar | ||||
* | Director | March 28, 2014 | ||
Roy Tanaka | ||||
* | Director | March 28, 2014 | ||
Jonathan Steinhouse | ||||
* | Director | March 28, 2014 | ||
Seth H. Z. Fischer |
* By: | /s/ Kenneth L. Londoner | |
Kenneth L. Londoner | ||
Attorney-in-fact |