Bioelectronics Corp (BIEL)

[GetSeriousOK]

This happens in the pinksheets ALL THE TIME.

The SEC usually looks the other way. It's unfortunate that they decided to go after BIEL because BIEL shareholders don't care, as you pointed out -- on the contrary, they APPLAUD this dilution. They call it "innovative."

The dilution certainly picked up in October, and none of that will show up in the Q3 financials. The O/S reported in the Q3 financials will probably be at least a billion shares lower than the true O/S.

Eventually, BIEL has to either do a R/S or increase the A/S. I'm estimating they will hit their 15 billion A/S cap by June 2017. If the FDA clears the de novo before then, the need for a R/S and/or an increase to the A/S will come sooner, because IBEX and St. Johns will want BILLIONS of shares on hand to dump into that news, IMO.

As Q3 financials approach, I think it's good to review BIEL's revenue history. When revenues jumped in Q4 2014 because of the Trial Version sales, the clarion cry was "who needs the FDA - profitability is right around the corner!" But profitability remains elusive. When revenues flatlined after Q4 2014, we're back to "it's all about the FDA!"

There's a lot to chew on in that Q2 financial report.
http://www.otcmarkets.com/financialReportViewer?symbol=BIEL&id=158849

These are FACTS -- the debt was $6.8 million, and during the first six months of 2016,

-> they borrowed $548,854 (page 11)
-> they paid $330,000 in interest (pages 10 and 11)
-> they only had $12,643 cash on hand on June 30th.

BIEL has done a good job of reducing their costs so they have come within a couple hundred thousand dollars of profitability in a quarter when you don't count the debt interest, but that debt interest is a killer for such a small company.