Hemp Inc (HEMP)

[Det_Robert_Thorne]

Expect lower revenue in 3Q/14 filing

The 3Q/14 filing is due the end of next week (Nov 14,) but a Notification of Late Filing is practically a given, as Perlowin has filed one in every quarter since early 2013.

Therefore, we'll likely not see the 3Q/14 results until Nov 19 or 20.

When the report is filed, expect to see the following:

1) Lower revenues than in 2Q/14, mainly because no new consulting clients were announced in the third quarter, which means no artificially inflated shares-as-payment to report. There is a small possibility that because REVI cancelled its contract, it might have had to pay six months worth of payments to terminate the deal, which could raise the revenue a bit.

2) Another writedown on the shares held on the balance sheet. Although I haven't checked all the prices yet, I believe that in every case, the stock prices of all of the consulting clients fell from the end of 2Q/14 to the end of the third quarter. Depending on how much they fell and how many shares were added as payments in the third, the overall value of shares held could have fallen, so we'll see another writedown.

3) I expect we'll see more share conversions, so the number of outstanding shares will increase by 100M to 300M.

4) The company may have started incurring expenses for the decortication plant (moving, reassembly, buying or leasing of property, etc) which will also hit the bottom line. This time, however, it will be a real cash payout, so maybe there will be more loans from Bruce to the company, which means more future conversion and dilution.