
Diagnos (ADK.V) is in the business of leveraging image recognition technologies for diagnostic purposes. We initiated coverage on January 2017, with a subsequent note on July 2017. and February 2018. From the time of our last note, the following releases were issued.
Feb. 14 - Provided Market Update - Dundee sold 2.02M shares between February 2-7th. They now own less than 10%.
Feb. 27 - Signed a 3 years contract with Kanhoor Medical Co. in KSA. Patient screening will increase from 2,500 to 35,000 in the next 12 months.
Mar. 6 - Earnings: Q3 2017 - $0.9M in Revenue, Loss of $0.25M - See Sedar for details.
Mar. 7 - One-Year Agreement with a Major Pharmaceutical in United Arabs Emirates (UAE).
Apr. 4 - Dr. Reid Maclellan to the Board of Directors - Also announced is the resignation of Mr. Tristram Coffin as a director.
Apr. 5 - Arrowhead (ABID) update valuation to $0.19 - $0.39 cents - from initial $0.63 to $0.72 cents.
Apr. 6 - Sells 10.5M Shares of Albert Mining Inc.
May 28 - Private Placement and Stock Options Grant. Gross proceeds of up to $1.2M, 200,000 stock warrants (each a “Warrant”) entitling the holder to purchase one common share (“Share”) per Warrant at a price of $0.15 per Share, for a period of 18 months from the date of issuance.
Debentures can be converted at $0.10 cents per share. 2.75M stock options at $0.075 cents. Stock options vest at 50% per year,
Jun. 6 - Technological showcase at the CHUM with the opening of an automated diabetic retinopathy screening clinic assisted by AI. - $0.159M funding from Quebec Government for a $0.398M demonstration with Centre Hospitalier de l'Universite de Montreal (CHUM) - 3,000 patients.
A six month pilot program is scheduled to start on June 16th.
June 12 - Announce availability of its New CARA High Blood Pressure Risk Assessment Based on its FLAIRE Artificial Intelligence Platform (HTA) his innovative application of CARA’s platform provides an automated system analysis of the micro-circulation for hypertensive patients.
June 14 - Hires Investor Relation Firm Momentum Public Relations and Provides Financing Update. The agreement with Momentum started June 1, 2018 for an initial term of nine months. The compensation for the initial term is comprised of a fee of $60,000 and 500,000 stock options. The exercise price of the stock options has been established at $0.08 per common share.
Financial update Announces the closing of a first tranche for gross proceeds of $0.25M in connection with the private placement of units initially announced on May 28, 2018. Proceeds for developing new geographical markets and to fund operating and product development expenses.
June 26 - Changed Auditors to Raymond Chabot - Grant Thorton.
June 29 -Updates on financing activities previously announced on June 14, 2018.
July 5 - Closes Second and Final Tranche of Private Placement. Echelon and Leede Jones along with Arrowhead
July 10 - First Retina Screening Clinic in Panama. First of 15 planned health clinic planned with a Private Health Provider.
Despite continued market expansion, ADK.V has mostly been trading below $0.10 cents. Selling from Dundee, the re-valuation by Arrowhead, and the Albert Mining stocks liquidation were further precursors that another round of financing would be needed.
This has led to stock options being granted at $0.075 cents, which is about almost half from the last issuance ($0.13 cents). Furthermore, the change in Auditors (second time in two years) explain the selling pressure encountered after positive catalysts: CHUM, HTA, and Momentum IR announcement.
While the continued market expansion (8 out of 15 countries) in the past year is positive, the lack of revenue growth has strained valuation. ADK.V has not been able to turn a profit. Specifically, the Mexico deal has not sustained the company. This has led to a loss in momentum.
However, ADK.V is building a global network. Even if it is not currently driving revenues, it can potentially increase valuation.
Technology is a driver, but access to patient and local relationship are important assets to scale a business.

It’s early days, and there’s still work to do to bring the benefits of this research to patients, but ultimately, we hope to help real doctors and clinics expand global screening capacity to cover all at-risk individuals in the world. - Google AI
The above comment certainly put ADK.V's progress in context, but the lack in revenue is currently hurting valuation. A corporate update might help investor sentiments in the short-term but major endorsements and revenues are what the market is looking for.
For now, valuation is drifting and an opportunity for some.

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