Q Biomed Inc (QBIO) announced that the first commercial sale of Metastron™ is set to happen following the successful transfer or assignment of all intellectual property, material sales and distribution data, technical transfer, and the establishment of new manufacturing sites under the appropriate regulatory filings required. This development marks a significant milestone for the company as it seeks to increase its position in the growing pharmaceutical market.
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Metastron: A Promising Radiopharmaceutical for Cancer-related Bone Pain
Metastron is a radiopharmaceutical drug developed for the treatment of bone pain in cancer patients, particularly those with metastatic bone disease. The drug has undergone extensive research and development, and the acquisition of Metastron’s intellectual property and related assets has positioned Q Biomed for potential success in the cancer treatment market.
SEC Report: Acquisition and Amortization Details
According to the recent SEC report, Q Biomed acquired the assets associated with Metastron, which are collectively considered a finite-lived intangible asset. Under the agreement, a one-time milestone payment and royalty payments based on future sales will be recognized when the related sales targets are met and payments become payable to GE. The acquired asset is being amortized on a straight-line basis over its estimated 10-year life.
Over the next five years, Q Biomed expects to recognize the following amortization expenses associated with these intangible assets: $37,500 for 2023, $50,000 for each year from 2024 to 2027, and $50,000 for each year thereafter until $287,500 is reached.
Investment Conversion and Debt Situation
During the year ended November 30, 2022, Q Biomed converted $3.6 million from licensing fees and share awards expensed in Research and Development into an investment in an associate, Mannin. This conversion resulted in a $500,000 loss between the value of shares received and the amount expended in Research and Development.
Furthermore, Q Biomed’s outstanding debt as of February 28, 2023, and November 30, 2022, includes convertible notes payable with different principal values and debt discounts. The total carrying value of convertible notes payable is $4,083,000 and $4,110,000 for February 28, 2023, and November 30, 2022, respectively.
Continuous Growth Strategy and Upcoming Milestones
As part of its continuous growth strategy, Q Biomed entered into multiple debenture agreements with different accredited investors. These debentures have varied interest rates, maturity dates, and other terms, reflecting the dynamic financing landscape of the pharmaceutical industry.
As Q Biomed embarks on the first commercial sale of Metastron and continues to develop its product portfolio, investors and industry stakeholders will be monitoring the company’s progress closely. Successful commercialization and growth in product sales could boost its market presence and profitability in the long term, contributing to enhanced value for shareholders.
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!