Diagnos (ADK.V) is in the business of leveraging image recognition technologies for diagnostic purposes. We initiated coverage in January 2017, with subsequent notes on July 2017. February 2018, July 2018 and January 2019.
There has not been any new releases from our last update. However, ADK.V's CEO made an appearance on the Midas Letter. The long and short of it is that he did not take the opportunity to distinguish ADK.V from Albert Mining. The exchange at the beginning of the interview is somewhat confusing because the CEO of ADK.V also happens to be a Board Member at Albert Mining. These are currently two different organizations.
The fact that ADK.V's CEO promotes Albert Mining is puzzling. Albert Mining already has a capable team. More importantly, ADK.V last reported divesting itself of Albert Mining shares last year. However, it looks like there has been a change.
In their last MD&A (Feb. 27th), ADK.V reported: "During the nine-month period ended December 31, 2018, 65% of revenues were derived from data interpretation services rendered to one company active in the mining sector". That's interesting because ADK.V describe its main business as:
DIAGNOS has built an Artificial Intelligence (“AI”) platform called FLAIRE to provide assistance to general practitioners in interpreting medical imaging at the primary care facilities. The Corporation operates in Healthcare and offers image analysis services through Computer Assisted Retinal Analysis (CARA), a software tool, which assists health specialists in the detection of diabetic retinopathy. The M&DA also states: "The overall decrease in bookings and revenues from the healthcare sector is mainly attributable to the non-renewal of one agreement with a governmental organization in Mexico".
Does this constitute as a change of business per say? Maybe not, but should shareholders and the market be advised via a press release? Hmm...
In the context that ADK.V's has not been performing for the past 18 months (i.e. investor presentation continues to be elusive, deals continued to be announced with no monetary value, and detailed updates on medical projects are lacking in the MD&A), the appearance made on behalf of Albert Mining is worrisome if ADK.V is still in the medical imaging field. As a reminder, ADK.V is competing with DeepMind (Google) and numerous organizations (i.e. Eyenuk, Inteligent Retinal Imaging Systems (IRIS), Voxel Cloud, IDX and Retinalyze among others) focused on retinal imaging.
Ironically, the Midas Letter appearance and the Albert Mining's March 6th release made ADK,V's stock blink.
Nonetheless, we are dropping coverage of ADK.V effective immediately.
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