Hemp Inc (HEMP)

[Det_Robert_Thorne]

3Q/16 Rev: $22, $3.7M loss, OS: 874M shares

* Revenue was $22, not $22K, TWENTY-TWO DOLLARS!
* The net loss was $3.7M
* The OS on Sept 30 was 874.0M shares, an increase of 15.9%, or 120M shares
* Share subscriptions (value of shares due Perlowin) increased to $5.2M from $4/3M at the end of 2Q/16
* As with the 2Q/16 report, no mention of the SEC action against Perlowin and HEMP

The 3Q/16 report was filed at about 1:30PM PST (Pacific Standard Time).

http://www.otcmarkets.com/financialReportViewer?symbol=HEMP&id=163040

3Q/16 Revenue was $22, and there was no Cost of Goods Sold. IOW, HEMP essentially did zero sales in 3Q/16.

HEMP reported a 3Q/16 Net Loss from operations of $3.7M, with $3.07M of this being share-based compensation. Bruce is sure paying out a lot of shares for services.

Net loss for 3Q/16 was $3.7M

At the end of 3Q/16, the OS was 874M shares, an increase of 120M shares (15.9%) from 2Q/16. Since the end of 2015, the OS has risen by 416.4M shares, or 91%. It's actually much higher than that now, because on Friday, Nov 18, I called the TA, who told me that the OS is now 1.096B shares. IOW, halfway through 4Q/16, the OS has risen by another 220M shares. Obviously, Perlowin is pumping out news in order to sell shares.

Finally, it looks like Bruce lent the company approximately $890K during 3Q/16, because at the end of the quarter he converted $890K debt into stock subscriptions payable.

IMO, this conversion to subscriptions payable is designed to do two things:

1) Make it a bit harder to figure out how much money Perlowin is lending to the company

2) By converting debt to subs payable just before the end of the quarter, the debt moves from the Liablilities section of the balance sheet to the Shareholders' Deficit section, which makes the book value appear greater.

When those subs payable are finally converted into shares, the OS will explode.

Finally, there doesn't appear to be any mention in the filing of the SEC complaint about Perlowin and HEMP's alleged sales of unrestricted shares.

Why am I not surprised?

http://www.otcmarkets.com/financialReportViewer?symbol=HEMP&id=159320

All in all, another pathetic report, and it's very likely that this will be the fifth consecutive quarter where Perlowin won't issue a PR about the quarterly reports.

Added in Edit: Based on the Retained earnings/deficit on the Balance Sheet, in the 12 months between 3Q/16 and 3Q/15, Bruce has spent nearly $18M on the NC plant and other stuff.