All I can say is I hope not but I wont be surprised if it is.
This is what I emailed them after the call today. Yes its a long winded email/post but I am tired of holding on. Either I need to accept I will never recover my losses and just move on (a painful lessen) or I need proof there is a glimmer of hope left. I asked the question about $1M in revenue by CARE Oncology when the company was purchased as compared to the joint revenue the company can make today.
I was told I was mistaken by that figure.
Looking on Sedar for Aug 16, 2021 it clearly states that purchasing all the shares of CARE will provide the following highlights
• Adds ~$4 million in annual revenue and is immediately accretive to StageZero
• Provides StageZero Life Sciences with full access to Care Oncology’s network of oncologists and physicians across the United States, including Care Oncology’s Los Angeles clinic, and the physicians’ healthcare affiliations.
• Positions StageZero to take full advantage of the multi-billion dollar emerging global market for liquid biopsy diagnostic tools and the strong trend toward telehealth and early-disease diagnostics
• Adds experienced management expertise to build out StageZero’s clinical offerings and significantly expands the sales and marketing effort.
• Offers synergistic cross-selling opportunities as StageZero provides diagnostic tests to the thousands of current Care Oncology patients, with StageZero liquid diagnostic customers now having access to the full Care Oncology “Patient Journey”. This, in turn, provides multiple revenue streams.
$4M divided by 4 = $1M in revenue from CARE per quarter so I will ask my question again. How is it possible the combined company cant even make $1M in revenue a quarter now?
Investors wont be told which companies (if any) want to do business with stagezero.
Investors wont be told specifics like numbers of tests or how the revenue split is made up between CARE and Stagezero
I get it we cant be told everything so we are left to our educated assumptions and looking at the facts that we know.
My assumption from my question, answer, and information investors were told on Aug 16, 2021 is that investors were lied to.
So having come to that assumption using the only known information available to me then how far down the rabbit hole should I assume that goes? What I mean by that is if a company can lie about something like this, something that was officially reported in a news release, then why should I assume this is the first and only time this has occurred?
How can you ensure investors they are not being lied to in other areas in a way that we would believe you now?
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- Generated $0.779 Million revenue for the quarter (an increase of 15.2% over last Quarter Q4 2022).
- Launched COC Protocol 2 in the US and Canada. Initial uptake very positive. - why should investors believe the uptake is positive? Would you really tell us if it wasn't? Quantitate "very positive"
- METRICS Study Informs Expansion of StageZero's New Care Oncology Protocol 2; pathway to METRICS II and Glioblastoma addition to Aristotle®.
- COC clinics on path to full profitability by end Q3. - The clinics might be profitably by Q3 but that does not mean Stagezero as a company will be. I assume this is another example of possibly being a fact but also massively misleading investors at the same time.
- Initiating mental health support program for Care Oncology patients and for employer groups. Launch in Q2.
- Scaled up Aristotle®/AVRT early cancer screening with Fire Fighters in the Greater Toronto Area. - "Scaled up" Aristotle with fire fighters in Toronto area. Scaled up from what currently? My assumption is that number is currently 0. So what does scaled up from there mean? I guess technically it could mean 1 because technically that is "scaled up"
- Aristotle® Employer programs gaining traction. - what does this even mean? Going back to my original question I am left with my assumption and I assume this is pure fabrication on the part of stagezero management
However now that the question about $1M in revenue has been asked, acknowledged by Stagezero, and an answer given that does not line up with previous Stagezero news releases investors deserve to have an answer given for this let's call it "lapse in judgement". If not any credibility the company has left will be gone.
If management decides to ignore the question and answer today in relation to the information that was given on Aug 2021 then investors will view that as management believing them to be stupid. On the flip side if management does fully address this issue then I believe that would do wonders as far as investors are concerned. I'm not saying mistakes cant happen. Owning up to those mistakes and not trying to hide them is what makes someone great though. Ball is in your court now. Is this the time in history Stagezero pivots or does Stagezero continue to go down the same path. I don't know how much longer a company that has lost 99% of its share value can afford to go down the same path.