US Stem Cell Inc (USRM)

[Dragon Lady]

Quote LOL: "BHRT was around this price before it went to .08 last year. I believe we only knew about 500K in revenues at that time. All the negative information being posted everyday is the same today as it was when this went up 800% last year. The only difference I can see are positives. Increased revenues, further along clinical advancements and potential partnerships. What has changed from a negative standpoint since this time last year?"

Day's low of .0082 again, right out of the gate, WOW. But I digress.

To the quote/question above-

1) And how long did it, BHRT trade and last at .08 after what was IMO a hype based run up? I believe a chart will show it lasted less than ONE DAY at the .08 price, probably actually minutes or less if memory serves me correctly. Then, within the next day or two days or so if memory serves me- it sunk by more than 50% on massive selling to about the .035 area. It then had a few more attempts to hype it/run it IMO with some "other" PR if I remember and then a "paid promotion" was used not too long thereafter ($5K at least for one month of penny promotion paid to a firm called and site called smallcapvoice) and the stock "popped" back up a bit to maybe the .06 max range one last time and then began a now nearly 12 month, steady (maybe a minor pop or two along the way perhaps) steady downtrend decline from a brief moment at .08 to now SUB ONE CENT. Whoever got caught in the .08 area or .06 area IMO more than likely got creamed for major losses. That's not an "investment" IMO but more like a split second on a Vegas slot machine or craps table to me. Again, the time at .08 was probably, literally moments - I'll pull up a historic chart and can probably measure pretty close to how many "minutes" it was actually at .08, but I believe it wasn't long at all.

2) What's changed from 1 yr or so ago to the "negative"? Well, one tiny little tid-bit might be a close to doubling of the O/S shares (especially the fully diluted share count) via massive, massive dilution via issuing over 300 million shares in approx. a 1 yr, maybe 1.5 yr max period. From SEC filings:

Around Aug 2013 the O/S share count was about 236 MILLION shares

By about March of 2014 the O/S share count hits about 420 MILLION shares

By about March of this yr, 2015 the O/S share count will more than likely pass around 700 MILLION shares, somewhere in that range (by release of next 10-K filing) as a guesstimate based on on-going, continual dilution IMO.

At some point, IMO, massive stock dilution has to have some effect on the common shares. Also, during that time period, the BOD also increased the A/S (available shares) to 2 BILLION. Which means IMO they know/knew they're gonna continue massive, massive dilution as they already had 950 million A/S available when they did that increase (apparently 950 MILLION share available was not enough to satisfy the future share dilution appetite and needs?)- apparently the BOD felt the 950 MILLION number just didn't leave um enough "cushion" zone for how rapidly the dilution would be occurring, so they upped the A/S by just a massive number of over 1 BILLION shares more.

That massive share increase was done on April 17, 2014 (NO PR about it of course, but a PR gets issued if some "award" or whatever is given to someone- but nothing about a massive increase in A/S shares, so unless one saw the SEC filing they didn't even know it occurred) And the increase was done via the "We don't need, nor do we want your vote as common shareholders" statement in a proxy "notice" (not a vote as none is ever needed) sent out that was for "information only" - saying in effect that the insiders who control all shareholder voting power (mainly via Northstar LLC's 25:1 preferred shares voting rights on 20 million shares = 500 million votes alone) that they, the "insider key shareholders had approved it" so don't bother voting, nor is your vote needed blah, blah etc. That's how the 950 million to 2 BILLION share authorization was "handled".

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9926197-843-289809&type=sect&TabIndex=2&companyid=734841&ppu=%252fdefault.aspx%253fcik%253d1388319

3) And maybe just a tad possibility that the on-going, never ending use of dilutive, "convertible debt" financing deals, aka "floorless" or "toxic" by the SEC's own definition could IMO be having just a "tad" of negative down pressure effects on the common shares? Just maybe possibly? Asher used many times, Magna, Fourth Man, Daniel James used several times, KBM Worldwide to name just some of the "convertible note" financing lending firms used in the approx past 1 yr- even as recent as Oct of 2014, despite the "revenues" as they don't produce enough bottom line cash to even come close to match the spending/expenses of the business.

http://www.sec.gov/answers/convertibles.htm

4) The continual talk of "revenues" IMO 100% fails to discuss the massive rise in the expenses/cost side that the business shows occurring on their SEC filed financial entries (also the corresponding massive CUTS to R&D spending/expenses occurring at the same time) that through Sept 30, 2014 10-Q filing have resulted in the company actually having a larger loss from operations than in 2013 (despite top-line "revenues") and left the company with only $46K total cash on-hand as of the end of the last qtr at which point they immediately inked several "convertible debt" aka toxic notes in Oct 2014 for amounts as low as $25K and $38K for survival cash (despite the claims and PR and all about "revenue) - highly dilutive notes at horrible financing terms such as share discounts of 45% and 47% (see last filed 10-Q PAGE 26 Daniel James and KBM note financing deals). Read the statement of operations on PAGE 5 to see larger losses from operations yr over yr despite top line "revenues" as expenses have grown faster than any revenue banked after cost of sales is subtracted out).

5) Same 10-Q, latest filed, still contained a "going concern" and "liquidity problems" warning from Sr Mgt despite "revenues" so not sure what has "changed" so much IMO? Their financial situation is pretty much as desperate and in poor condition yr over yr that I can see? They're living off of dilution, their expenses have massively risen despite no trials or any real R&D spending occurring (Again, page 5 last 10-Q), etc so what have "gotten better" supposedly or whatever? I personally don't see that reality reflected in any SEC filed statements? Where?

PAGE 12, latest filed 10-Q, their Sr Mgt's most recent discussion of their financial situation and how poor it is:

"NOTE 2 — GOING CONCERN MATTERS
The accompanying unaudited condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying unaudited condensed financial statements, during nine months ended September 30, 2014, the Company incurred an operating loss of $1,247,199 and used $747,184 in cash for operating activities. As of September 30, 2014, the Company had a working capital deficit (current liabilities in excess of current assets) of approximately $10.0 million. These factors among others may indicate that the Company will be unable to continue as a going concern for a reasonable period of time.
The Company’s existence is dependent upon management’s ability to develop profitable operations and to obtain additional funding sources. There can be no assurance that the Company’s financing efforts will result in profitable operations or the resolution of the Company’s liquidity problems. The accompanying statements do not include any adjustments that might result should the Company be unable to continue as a going concern."

So those are just a few possibilities IMO, just a few maybes as to why the common shares might be in a now 10 plus month sustained downtrend? Don't know for sure- but that seems like some pretty solid data IMO, all found in the company's own SEC filings that might give a hint or clue as to why they may be where they're at now?

Oh, and the MIRROR big "phase 3 trial, FULLY FUNDED BY Bioheart" that PR and the "FULLY FUNDED" part in the PR from over 1.5 yrs ago now- well, it sorta-kinda like never actually happened either. On Jan 25th, 2015 a PR (with no real explanation given) said it, MIRROR, the big phase 3 trial is over, when for all intents and purposes IMO it never actually even took place or occurred, let alone was ever "funded" by Bioheart. Just look up the PR and SEC filing history of MIRROR- it's "interesting" to say the least IMHO. Also, no other major, key trials of there's have ever moved forwad or advanced either- while all the dilution has occurred and the convertible debt deals have been on-going, etc. Their "key trials" are now about FIVE YEARS stagnant.

Here's from the last 10-Q filing, most recent qtr, PAGE 29:

"We received approval from the FDA in July of 2009 to conduct a Phase I safety study on 15 patients of a combined therapy (Myocell with SDF-1), which we believe was the first approval of a study combining gene and cell therapies. We initially commenced work on this study, called the REGEN Trial, during the first quarter of 2010. We suspended activity on the trial in 2010 while seeking additional funding necessary to conduct the trial.
We are seeking to secure sufficient funds to reinitiate enrollment in the MARVEL and REGEN trials. If we successfully secure such funds, we intend to re-engage a contract research organization, or CRO, investigators and certain suppliers to advance such trials. We have initiated and enrolled our first patient in the MIRROR trial in 2013. The trial is very similar to the MARVEL trial but focusses on sites outside the US. We will continue enrollment in the MIRROR trial once we have secured sufficient funds."

MARVEL essentially went parked around 2009 I believe, even earlier than REGEN. So that' about 5 or 6 yrs now those trials have gone nowhere "awaiting funding" but in that period massive base pay as well as "bonuses" ($800K in "cash" bonuses just in 2014 alone) have been awarded to just two people in the company (which has about 3 to 5 full time employees total during the yrs those trials have gone nowhere - see SEC filings for any period from 2010 to today pretty much).

So maybe that's could-might be an issue too- that they really aren't apparently conducting "heart" FDA type trials anymore per their own SEC filings, then MIRROR never actually happened as hyped in a big PR campaign, etc Again, just my 2 cent thoughts on a few "possibilities" as to why maybe the common shares have come under some selling pressure?

Really not sure why- but those seem like some pretty solid possible-maybes IMO, all from the company's own SEC filings and PR and stuff they put out.

Just cause a stock "popped" for a brief moment in one year- I really don't see how that is some supposed barometer or "predictor" of what a stock will do in the next yr or especially in some near exact time frame in some future year? Everything I've read and know about stocks/markets tells me that the past does not ever "predict" the future when it comes to stocks (read the company's "Safe Harbor" statements they include in pretty much every PR or any statement or "plan" they ever talk about, how nothing in the future may ever even actually happen or occur as described and the future can't be predicted, etc)- but stock that had brief "pops" in one year don't always do it again at the very same time the next yr IMO, especially ones that are diluting constantly and using convertible debt deals nearly continuous, on-going, etc. I just don't see any connection or way to make those connections IMO?

My .009 cents worth.