Hemp Inc (HEMP)

[Det_Robert_Thorne]

No Revenue or Cash, with 2.6B outstanding Shares

HEMP had $14K in revenue in 3Q/14, $1.1K cash at the end of 3Q/14 and saw a $2.5M loss.

It will report shares from the consulting deal with VAPR as income in 4Q/14, but the shares received from the clients in 1Q/14 have lost between 80% and 100% of their value, with one, WBXU (-100%), having it's registration revoked by the SEC, and another, HIMR (-99%) executing 1:5,000 reverse split.

The shares received in 2Q/14 have lost between 42% and 96% of their value, with PPJE (down 96%) staging a 1:100 reverse in December.

The consulting business has been a bust.

Cartel Blue has gone nowhere.

The OS is up to 2.6B shares as of the end of 3Q/14.

Per last Friday's PR, installing the Decorticator is going to cost at least $2.3M (nearly 2X the original budget). Since the company has no cash or cash flow, that means more loans from the CEO, which will be converted to shares, further increasing the OS.

BTW, at the end of 3Q/14, the company already owed Perlowin $932K, which will soon be converted to shares (Per filings from earlier years, he usually runs the balance owed him to zero at the end of the Fiscal Year).

There will be no revenue from Hemp processing in the first nine months of 2015, and unless the NC legislature passed an industrial hemp growing law by March that allows massive growing in 2015, there will be no hemp to process in 2015 at all.

Finally, the 4M - 5M pounds of Kenaf remaining after the other 10M pounds spoiled will generate a maximum 2015 profit (for that facility) of about $200K.

Right now, HEMP has a market cap of nearly $90M, and is extremely overpriced on nearly any metric.