QUANTRX BIOMEDICAL CORPORATION Overview
We have developed and intend to commercialize our patented miniform pads and PAD based over-the-counter products for the treatment of hemorrhoids, minor vaginal infection, urinary incontinence, general catamenial uses and other medical needs. We are also developing genomic diagnostics for the laboratory market, based on our lateral flow patents. Our platforms include: inSync®, UniqueTM, and OEM branded over-the-counter and laboratory testing products based on our core intellectual property related to our PAD technology.
The continuation of our operations remains contingent upon the receipt of additional financing required to execute our business and operating plan, which is currently focused on the commercialization of our PAD technology either directly or through a joint venture or other relationship intended to increase shareholder value. In the interim, we have nominal operations, focused principally on maintaining our intellectual property portfolio and maintaining compliance with the public company reporting requirements. In order to continue as a going concern, we will need to raise capital, which may include through the issuance of debt and/or equity securities. No assurances can be given that we will be able to obtain financing on terms favorable to us, if at all, or otherwise successfully develop a business and operating plan or enter into an alternative relationship to commercialize our PAD technology.
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Our principal business line consists of our OTC Business, which includes commercialization of our InSync feminine hygienic interlabial pad, the Unique® Miniform for hemorrhoid application, and other treated miniforms, as well as maintaining established and continuing licensing relationships related to the OTC Business. We also own certain diagnostic testing technology that is based on our lateral flow patents. Management believes this corporate structure permits us to more efficiently explore options to maximize the value of the Businesses, with the objective of maximizing the value of the Businesses for the benefit of the Company and our shareholders.
Our current focus is to obtain additional working capital necessary to continue as a going concern, and develop a longer term financing and operating plan to: (i) commercialize our over-the-counter products either directly or through joint ventures, mergers or similar transactions intended to capitalize on potential commercial opportunities; (ii) contract manufacturing of our over-the-counter products to third parties while maintaining control over the manufacturing process; (iii) maintain our intellectual property portfolio with respect to patents and licenses pertaining to both the OTC Business and the Diagnostics Business; and (iv) maximize the value of our investments in non-core assets. As a result of our current financial condition, however, our efforts in the short-term will be focused on obtaining financing necessary to maintain the Company as a going concern.
Our Results of Operations
We did not generate any revenue during the years ended
Total costs and operating expense for the years ended
Year Ended Year Ended
December 31 , December 31,
2019 2018
Sales, general and administrative
$57,835 $106,515
Professional fees, related party 84,000 54,000
Sales, general and administrative expense includes, but is not limited to,
consulting expense, office and insurance expense, accounting and other costs to
maintain compliance with our reporting requirements to the
Professional fees include the costs of legal, consulting and auditing services provided to us, each of which were lower in the 2019 period, as compared to the 2018 period. The period over period decrease is due to lower costs of legal fees during the 2019 period due to the higher legal fees related to the Preprogen transaction in the 2018 period.
Professional fees, related party include the costs of consulting fees paid to
We did not incur any research and development costs during the years ended
Other income and expense for the years ended
Year Ended Year Ended
December 31, December 31,
2019 2018
Gain (loss) on the sale of assets $- $(200,583)
Interest expense $(198,181) $(232,167)
Interest income $- 1,134
Loss on impairment $(222,000) $(278,000)
Gain on settlement of debt $- $108,385
Gain on settlement of accounts payable $- $100,260
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During the year ended
During the year ended
During the years ended
During the year ended
During the year ended
Net loss for the 2019 period was
Although we anticipate that we will likely incur net loss in future periods, we expect such net loss to decrease in future periods due to the current suspension of our active operations and our lack of revenue. We do not expect to re-commence active operations until we are able to secure financing necessary to execute our business and operating plan, including the development and launch of our products, or to otherwise capitalize on our PAD technology.
Liquidity and Capital Resources
At
During the year ended
During the years ended
During the year ended
Cash provided by investing activities during the year ended
Cash used by financing activities during the year ended
We have not generated sufficient revenue from operations to meet our operating
expenses. We require additional funding to complete the development and launch
of our products, or to otherwise capitalize on our PAD technology. We have
historically financed our operations primarily through issuances of equity
securities and the proceeds of debt instruments. In the past, we have also
provided for our cash needs by issuing Common Stock, options and warrants for
certain operating costs, including consulting and professional fees. In
addition, in the fiscal year ended
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Management believes that given the current economic environment and the continuing need to strengthen our cash position, there is substantial doubt about our ability to continue as a going concern. We are pursuing various funding options, including licensing opportunities and the sale of investment holdings, as well other financing transactions, to obtain additional funding to continue the development of our products and bring them to commercial markets. There can be no assurance that we will be successful in our efforts. Should we be unable to raise adequate financing or generate sufficient revenue in the future, our business, results of operations, liquidity and financial condition would be materially and adversely harmed.
We believe that our ability to re-commence operations, and therefore continue as a going concern, is dependent upon our ability to do any or all of the following:
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obtain adequate sources of funding to pay operating expenses and fund long-term business operations;
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enter into a licensing or other relationship that allows us to commercialize our products;
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manage or control working capital requirements by reducing operating expenses; and
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develop new and enhance existing relationships with product distributors and other points of distribution for our products.
There can be no assurance that we will be successful in achieving our short- or long-term plans as set forth above, or that such plans, if consummated, will enable us to obtain profitable operations or continue in the long-term as a going concern.
Off-Balance Sheet Arrangements
We have not entered into any transactions with unconsolidated entities in which we have financial guarantees, subordinated retained interests, derivative instruments or other contingent arrangements that expose us to material continuing risks, contingent liabilities or any other obligations under a variable interest in an unconsolidated entity that provides us with financing, liquidity, market risk or credit risk support.
Critical Accounting Estimates and Policies
The preparation of financial statements in conformity with accounting principles
generally accepted in
Impairment of Assets
We assess the impairment of long-lived assets, including our other intangible assets, at least annually, or whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The determination of related estimated useful lives and whether or not these assets are impaired involves significant judgments, related primarily to the future profitability and/or future value of the assets. Changes in our strategic plan and/or market conditions could significantly impact these judgments and could require adjustments to recorded asset balances. We hold investments in companies having operations or technologies in areas which are within or adjacent to our strategic focus when acquired, all of which are privately held and whose values are difficult to determine. We record an investment impairment charge if we believe an investment has experienced a decline in value that is other than temporary. Future changes in our strategic direction, adverse changes in market conditions or poor operating results of underlying investments could result in losses or an inability to recover the carrying value of the investments that may not be reflected in an investment's current carrying value, thereby possibly requiring an impairment charge in the future.
In determining fair value of assets, the Company bases estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets that are not readily apparent from other sources. Actual fair value may differ from management estimates resulting in potential impairments causing material changes to certain assets and results of operations.
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Transactions with Related Parties
During the year ended
As of
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