Hollund Industrial Marine Inc. (HIMR)

[Det_Robert_Thorne]

No 2Q14 Revenue, and "income" is derivative revaluation

The 2Q/14 filing shows that no revenue was booked in 2Q/14, the $3.39M in "interest income", which is the only reason that HIMR showed a paper "profit", is explained in Exhibit 1-12 as a decrease in the value of a derivative liability.

It is not income from operations, and really has no bearing on the cash on the balance sheet.

I haven't had a chance to really analyze the filing, but the number of outstanding shares is now 24,999,060,599, or almost equal to the 25B Authorized Shares. The OS has increased by nearly 4B since the end of 1Q/14.

I'm not sure if this increase was due to conversions of debt to shares, but that may be the case.

I don't think that the 4B increase includes shares paid to HEMP, because towards the end of the filing, the contract with HEMP is described, and it states that:

As of June 30, 2014, the Company’s unpaid consulting fees were approximately $215,000

If this $215K was not paid in shares in 2Q/14, then with the OS at 24.999B and the AS at 25B, if HIMR plans to pay HEMP in shares, then either the AS will have to be raised or the OS be reduced, likely via a reverse split.

Either one of these will likely require a shareholder vote, which means calling for a special meeting (or perhaps an annual shareholder meeting). It's possible that insiders and big shareholders still hold enough votes that they can amend the articles of incorporation without calling for a meeting, but more research is required.