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DIAGNOS Inc.
Technology, Healthcare,
Mining,
Industrial
TSX-V: ADK, OTC: DGNOF,
http://www.DIAGNOS.ca
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Prices |
Share:
C$0.15 |
MCap: ~C$21M |
On: 02/09/2017 |
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History |
52-Week:
C$0.035–C$0.20 |
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Prices |
Shares O/S:
~140,619,786 |
Fully D. 196,885,635 |
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DIAGNOS Inc. (TSX-V:
ADK) (US
Listing: DGNOF) (Frankfurt: 4D4) is a publicly
traded Canadian corporation with a mission to
commercialize technologies combining contextual imaging
and traditional data mining thereby improving decision
making processes, offering products, services, and
solutions to clients in a variety of fields including
healthcare and natural resources. DIAGNOS counts on a
multidisciplinary team that includes professionals in
geophysics, geology, Artificial Intelligence,
mathematics, as well as remote sensing and image
interpretation.
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Using artificial
intelligence in healthcare saves government and healthcare services
money by preventing debilitating blindness in at-risk populations.
Fig. 1
Retinal image enhanced with DIAGNOS software, prepped
for A.I. auto-detection of pathology & lesion classification.
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Investment Thesis
-- Near-term (12 month) share price target C$0.50.
The Company is executing on a growth
strategy that has been several years in the making.
DIAGNOS' revenue growth curve is rapidly accelerating, with revenues coming
mainly from artificial intelligence application side of
the business non-invasively identifying patients at risk
of vision loss in the diabetes market. The technology
was first used by DIAGNOS successfully in the mining
sector, identifying resources, and now after several
years of nurturing the application in healthcare, the
numbers that affect share price valuation metrics are
simply stunning.
DIAGNOS last week filed on SEDAR its
Financial Statements and the Management Discussion and
Analysis reports, for the three-month and the nine-month
periods ended December 31, a copy of which this is
replicated here
http://sectornewswire.com/DiagnosDec31-2016fin.pdf
online. The Company exceeded its forecast for the year
and was positive for the last quarter. The Company's
fiscal year end is March 31, 2017, and is forecasting
large increases in revenue going forward.
The Company's turn to profitability
is only just the beginning; DIAGNOS believes revenues
will grow to at least $6.6M in Computer Assisted Retinal
Analysis' (CARA) revenue for next year. The Company is
very confident it will meet that figure and depending on
what it does in this Q4 the revenues for next year could
very easily exceed its projection and come in at $10M or
$12M.
Table 1 (above) --
Revenue 2015 - 2018. Source: Company
disclosures.
ADK.V's revenue growth curve is rapidly accelerating
with topline >100% Y/Y.
The confirmation last week by DIAGNOS of the Company now
operating profitably is a milestone that management had
been working towards for years, it came to fruition as a
result of a growing pipeline of new business that first
bit on pilot programs and saw highly favorable results
that only recently have tuned to larger long-term
contracts. The recent turn to profitability falls on the
heels of yet another successful pilot project for
diabetic macular edema and diabetic retinopathy
screening with the Mexican Social Security Institute,
and news of the start of a pilot project with BAYER
Canada.
Swiss pharmaceutical giant Novartis is currently DIAGNOS'
largest customer. Novartis initially engaging ADK.V for
a series of pilot 'wellness' programs over the last
couple years in various countries, paying DIAGNOS to
screen patients
Doctors and specialists strongly endorse DIAGNOS'
technology as large numbers are able to be
non-invasively screened that would otherwise not be
seen. ADK.V has only recently begun to sell its
solutions to governments on a cost-reduction approach,
signing its first government contract in Mexico.
Supported by a strong growth and recurring revenue model
(at risk patients need to be screened yearly), and a low
cost growth associated with its artificial intelligence
software, we expect shares of ADK.V to rise several
multiples higher than its current price near-term.
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