Q Biomed Inc. (QBIO), a leading biotechnology accelerator, has recently secured $100,000 in funding through the issuance of 400,000 units in a private placement. Each unit comprises one common share and one warrant to purchase common stock at an exercise price of $0.50. The successful placement demonstrates the company’s ability to raise capital and strengthen its financial position to further its objective of developing and commercializing life-changing medicines.
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Debt Conversion and Outstanding Warrants
During the three months ending on February 28, 2023, QBIO issued 33,823,234 common shares for the conversion of approximately $238,000 of outstanding debt and interest. The company extinguished around $146,000 of embedded derivative liabilities and reversed approximately $118,000 of unamortized debt discount upon the conversion. As of February 28, 2023, QBIO had outstanding and exercisable warrants at a weighted average exercise price of $1.01 with a remaining contractual life of 3.8 years.
Research and Development Partnerships
In its commitment to research and development, QBIO has entered into various exclusive licensing agreements. Among these is the partnership with Mannin Research Inc., with a primary focus on developing a first-in-class eye drop treatment for glaucoma. As part of the agreement, QBIO would contribute funds in Mannin GmbH, its wholly-owned German subsidiary, to take full advantage of the German government grant secured by Mannin. QBIO agreed to pay $1.5 million in cash in three installments, of which $0.7 million has been paid.
Furthermore, QBIO maintains an exclusive license agreement with Washington University to develop a diagnostic marker for determining the severity of glaucoma using the expression levels of Growth Differentiation Factor 15. The company is obliged to pay an initial fee of approximately $88,000 and annual maintenance fees ranging from $15,000 to $75,000. Additional payments based on various milestones such as initiation of clinical trials, regulatory approval, and first commercial sales are also required.
A Stronger Financial Position amid Challenges
Despite facing recent legal challenges due to unpaid consulting fees from various contractors, the company’s continued efforts in securing funding and pursuing research and development collaborations demonstrate its commitment to paving the way for innovative healthcare solutions. Q Biomed Inc.’s latest private placement signifies an essential step toward achieving its vision of delivering life-changing treatments to those in need. A stronger financial position will enable the company to advance its research, strengthen its partnerships, and ultimately contribute to the betterment of public health.
Income Statement
Financials in millions USD. Fiscal year is December – November. source
| Year | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | Revenue | 0.28 | 0.2 | 0.03 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 1 | Revenue Growth (YoY) | 45.38% | 551.99% | – | – | – | – | – | – | – | – |
| 2 | Cost of Revenue | 0.29 | 0.25 | 0.33 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3 | Gross Profit | -0.01 | -0.05 | -0.3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4 | General & Administrative | 3.31 | 6.26 | 10.97 | 4.48 | 5.78 | 9.27 | 5.03 | 0.35 | 0.04 | 0 |
| 5 | Research & Development | 0.13 | 1.07 | 1.88 | 3.54 | 3.24 | 3.1 | 1.31 | 0.6 | 0 | 0 |
| 6 | Operating Expenses | 3.44 | 7.34 | 12.85 | 8.02 | 9.02 | 12.37 | 6.35 | 0.95 | 0.04 | 0 |
| 7 | Operating Income | -3.45 | -7.39 | -13.15 | -8.02 | -9.02 | -12.37 | -6.35 | -0.95 | -0.04 | -0 |
| 8 | Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 9 | Interest Expense | 1.38 | 0.51 | 0.3 | 1.46 | 0.16 | 0.76 | 0.48 | 0.01 | 0 | 0 |
| 10 | Other Expense / Income | -2.78 | 0.35 | 0.05 | 0.8 | 0.09 | 1.41 | 0.34 | 0.12 | – | – |
| 11 | Pretax Income | -2.05 | -8.24 | -13.49 | -10.28 | -9.27 | -14.54 | -7.17 | -1.09 | -0.04 | -0 |
| 12 | Income Tax | -1.34 | 0.35 | 0.05 | 0.8 | 0 | 0 | 0 | 0 | 0 | 0 |
| 13 | Net Income | -0.72 | -8.59 | -13.54 | -11.08 | -9.27 | -14.54 | -7.17 | -1.09 | -0.04 | -0 |
| 14 | Shares Outstanding (Basic) | 45 | 27 | 22 | 15 | 14 | 10 | 9 | 9 | 6 | 3 |
| 15 | Shares Outstanding (Diluted) | 45 | 27 | 22 | 15 | 14 | 10 | 9 | 9 | 6 | 3 |
| 16 | Shares Change | 67.13% | 20.84% | 47.34% | 9.50% | 31.23% | 18.12% | -2.28% | 41.22% | 131.16% | – |
| 17 | EPS (Basic) | -0.02 | -0.32 | -0.61 | -0.74 | -0.67 | -1.39 | -0.81 | -0.12 | -0.00 | -0.00 |
| 18 | EPS (Diluted) | -0.02 | -0.32 | -0.61 | -0.74 | -0.67 | -1.39 | -0.81 | -0.12 | -0.00 | -0.00 |
| 19 | Free Cash Flow Per Share | 0.04 | -0.16 | -0.28 | -0.27 | -0.51 | -0.53 | -0.17 | -0.01 | -0.01 | – |
| 20 | Gross Margin | -3.16% | -26.20% | -986.70% | – | – | – | – | – | – | – |
| 21 | Operating Margin | -1211.74% | -3777.44% | -43818.05% | – | – | – | – | – | – | – |
| 22 | Profit Margin | -251.83% | -4389.44% | -45142.51% | – | – | – | – | – | – | – |
| 23 | Free Cash Flow Margin | 682.75% | -2199.44% | -20778.14% | – | – | – | – | – | – | – |
| 24 | EBITDA | -0.25 | -7.34 | -13.1 | -7.97 | -9.11 | -13.78 | -6.69 | -1.07 | -0.04 | -0 |
| 25 | EBITDA Margin | -88.77% | -3751.88% | -43651.38% | – | – | – | – | – | – | – |
| 26 | Depreciation & Amortization | 0.05 | 0.05 | 0.05 | 0.05 | 0 | 0 | 0 | 0 | 0 | 0 |
| 27 | EBIT | -0.3 | -7.39 | -13.15 | -8.02 | – | – | – | – | – | – |
| 28 | EBIT Margin | -106.35% | -3777.44% | -43818.05% | – | – | – | – | – | – | – |
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!