"The Company believes that based on management’s expected rate of revenue from operating activities, specifically COVID-19 testing revenue, the Company’s recent investments in increasing laboratory capacity and test processing, as well as the net proceeds in the Minimum Offering scenario of $4,385,000, plus the Company’s cash on hand of approximately $2,250,000 as of October 16, 2020, will be sufficient to cover all of the Company’s activities (i.e., all of the Company’s costs) during the period ending November 30, 2021 (being the period in which the proceeds of the Offering in the Minimum Offering scenario are expected to be used).
The Company expects to generate revenue from the execution of orders for diagnostic tests, initially focusing on COVID-19 Tests, but eventually including cancer screening tests as the healthcare industry normalizes. The Company expects this revenue to contribute funding toward operating activities. Anticipated revenue is expected to be sufficient to fund the Company’s expenditures for a further twelve (12) months. This expectation is based on the assumption that StageZero’s operating non-development cash burn remains at approximately $250,000 per month going forward, and there are minimal additional unplanned or unforeseen expenses that are incurred during this period, and does not account for proceeds from additional warrant exercises, if any. The COVID-19 pandemic has reduced current demand or routine cancer testing and therefore, the Company will reduce spending in cancer testing expenses and reallocate funds toward COVID-19 testing capacities in the short and medium terms while preparing for the launch of Aristotle as cancer testing demand normalizes."