ROSE Diagnostics reports $2.2M sold in new $3M equity offering

Andrew Morris-led ROSE Diagnostics has sold $2,208,750 toward a $3 million equity offering, according to a Form D filed with the SEC on September 15th. The first sale took place on July 10th, making the disclosure a look at financing activity that began about two months earlier rather than a same-day close.

The filing reports $791,250 remaining under the offering target. ROSE structured the financing as equity under Rule 506(b), with a minimum outside investment of $5,000. The filing names no lead investor or participating funds and provides no valuation.

Morris founded ROSE with Eric Brouwer, Adolfo Velazquez and Donna Padavan, a group assembled around experience taking point-of-care diagnostics through product development, clinical studies and regulatory review. Morris has spent more than 20 years in diagnostics and life sciences and served 10 years on active duty in the U.S. Air Force as a biosciences officer, according to ROSE.

A team built for the cartridge business

Brouwer, ROSE's chief scientific officer, previously led research and development work on i-STAT's CHEM8+ cartridge and the technology behind its blood gas, electrolyte and chemistry cartridge portfolio. Abbott acquired i-STAT for $392 million.

That background matters because ROSE is making a similar operational bet: move a diagnostic answer closer to the patient, package it in a disposable cartridge and produce a result quickly enough to change what a clinician does during the procedure.

Velazquez, ROSE's chief technology officer, previously led development of several Quidel SOFIA point-of-care tests, including products for influenza, RSV and strep. A Western University profile says Padavan, ROSE's clinical and regulatory chief, worked at Abbott Point of Care and later directed a clinical program at SQI Diagnostics. She earned three engineering degrees from Western, including a PhD in biomedical engineering, and described shortening the wait between biopsy and cancer treatment as a central motivation for her work at ROSE.

The founders' experience gives ROSE credibility in a field where the difficult work begins after a prototype produces a promising result. Diagnostic developers still have to establish reproducibility, clinical performance, manufacturing controls and a regulatory pathway before a test can become a commercial product.

The $3M target is not the amount raised

The SEC filing draws an important distinction between the size of the offering and the cash sold so far. ROSE is seeking up to $3 million, while $2,208,750 had been sold as of the filing. In an SEC-filed offering memorandum dated November 15th, 2024, ROSE said it had generated no revenue since inception and had incurred a net loss.

ROSE previously announced a $1 million seed round in June 2024 and reported a $2.3 million financing in May 2025. Adding the disclosed proceeds from those rounds to the new filing puts ROSE's reported Reg D financing at approximately $5.5 million. That total uses the amounts ROSE announced for the earlier rounds and the amount sold, rather than the $3 million target, for the current offering.

ROSE's May 2025 financing announcement said that raise would support product development and completion of clinical trials while positioning verifi LUNG for FDA approval and future commercialization. ROSE's investor page subsequently recorded milestones from its clinical study and test-development work.

A five-minute answer inside the biopsy suite

ROSE says verifi LUNG uses a panel of known lymph-node biomarkers to check whether a lung-biopsy specimen contains sufficient material for analysis. A disposable cartridge runs on a small portable reader that ROSE says is already approved for other diagnostic products. The intended result arrives in about five minutes, while the patient is still undergoing the biopsy.

The timing addresses a specific failure in the existing workflow. Biopsy specimens are typically sent to a pathology laboratory, where an inadequate sample may be discovered only after the procedure is over. ROSE says as many as 40% of lung-biopsy samples are returned as insufficient, potentially requiring another procedure and extending the time before treatment can begin. The 40% figure and five-minute performance remain ROSE's claims. An SEC-filed offering memorandum said ROSE's test cartridge was not yet FDA cleared and that the reader was already approved by the FDA for other diagnostic applications. ROSE's product page describes the verifi-1 Reader as cleared under another manufacturer's brand and identifies the clearance as 510(k) K192817.

ROSE reported in August 2025 that it had enrolled 15 patients in a planned 50-patient sample-collection study with Scripps Health. ROSE said the study was examining specimen characteristics and test performance in clinical workflows. Its investor page subsequently listed initial sample-characterization results in December 2025 and completion of proprietary engineered antibodies in January 2026, though ROSE has not published detailed clinical-performance data on those milestones.

The financing gives Morris and his co-founders more room to determine whether their cartridge can reliably tell clinicians, during a lung biopsy, that they have collected enough usable tissue. A dependable answer in five minutes could spare patients repeat procedures. ROSE still has to demonstrate that performance through clinical evidence and regulatory review.