QUANTRX BIOMEDICAL CORP files 10-Q

QUANTRX BIOMEDICAL CORP files 10-Q in a filing on Aug 15, 2019 accessible here.

Dividend Yield. The Company has never paid cash dividends, and does not currently intend to pay cash dividends, and thus has assumed a 0% dividend yield.

In May 2006, the Company purchased 144,024 shares of Common Stock of GMS Biotech, formerly Genomics USA, Inc. (“GUSA”) for $200,000. After the investment, the Company owned approximately 5% of the total issued and outstanding Common Stock of GUSA. As of December 31, 2018, the Company’s position had been diluted to approximately 2% of the issued and outstanding Common Stock of GUSA. The investment is recorded at historical cost and is assessed at least annually for impairment. During the year ended December 31, 2017, the Company recorded a loss of $169,948 to fully impair the value of its Common Stock investment in GUSA. The Company has valued the impairment based on the dilution of the Company’s investment and certain other factors.

On September 3, 2015, the Company entered into a non-binding letter of intent (the “Global LOI”) with Global Cancer Diagnostics, Inc., a privately held laboratory in Tempe, Arizona (“Global”), for a proposed business combination. The Global LOI had an original termination date of October 31, 2015 (the “Termination Date”), but could be terminated or extended anytime by the mutual written consent of the parties. During the quarter ended September 30, 2016, in accordance with the terms and conditions of the executed Global LOI, the Company deemed the Global LOI terminated. Accordingly, Global is obligated to issue the Company the number of shares of Global’s Common Stock equal to 10% of its then outstanding shares of Common Stock, on a fully-diluted basis, as payment of the Global Advance. In addition to the share issuance, the Company is evaluating certain additional remedies related to the Global LOI and the $50,000 advance. The Company deemed the $50,000 Global Advance to be fully impaired as of September 30, 2016.

In December 2017, the Company executed an agreement with Preprogen, pursuant to which the Company sold, assigned and licensed-back certain assets pertaining to its Diagnostic Business (the “Preprogen Transaction”). As a part of the Preprogen Transaction, the Company acquired a 15% interest in Preprogen.  On October 8, 2018, the Preprogen Agreement was amended to provide for, among other things, the release of funds held in escrow related to the manufacture of the miniform pads (the “Preprogen Amendment”), which resulted in both parties receiving $200,583 in cash. As consideration for the Preprogen Amendment, the Company agreed to pay Preprogen a royalty of 5% from the sale of all over-the-counter miniform products; provided, however, that such royalty payments shall terminate when Preprogen has received $200,000 in aggregate consideration from the royalties paid by the Company, and that the Company shall be entitled to offset such royalty payments due and payable to Preprogen by amounts equal to certain other payments otherwise due and payable to the Company by Preprogen pursuant to the terms of the Preprogen Agreement. At December 31, 2018, we revalued our investment in Preprogen to $222,000, recording an impairment of $278,000.

In July and August 2017, the Company issued certain investors Bridge Notes in the aggregate principal amount of $86,000 (the “2017 Bridge Notes”). Each 2017 Bridge Note accrues interest at a rate of 10% per annum, and matured on September 30, 2017. The 2017 Bridge Notes are now payable on demand.

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