US Stem Cell Inc (USRM)

[Dragon Lady]

SEC GOING CONCERN WARNINGS, LIQUIDITY PROBLEMS !!

Their finances are a freaking train wreck per the most recent SEC filed 10-Q. They're borrowing against all in-coming revenues using "factoring" (payday like loans at horrific rates and terms) just to keep enough cash on-hand to stay solvent.

They can barely even pay their most immediate due bills most of the time, just their accounts payable which were approx $1.4 MILLION recently w/ only about $600K CASH-ON-HAND LEFT mostly cash raised by selling one of the few and only assets they had, their stem cell banking biz, but they still struggle typically to pay their most immediate due bills, accounts payable due in 30 to 45 days net (that's why they're using "FACTORING LOANS" to borrow against any incoming cash, borrowing at horrific rates when interest rates are literally practically ZERO for companies with legit credit ratings and also paying bills in COMMON SHARES OF STOCK ISSUED), let alone their ability to pay total current liabilities, bills/debts they owe due in less than 1 yr, let alone their massive long term debts.

They STILL, STILL TO THIS DAY often pay common bills due, via issuing COMMON SHARES OF STOCK, LOL ! (YES, that is DILUTION, and they have not had a qtr or year since 2010, when they DID NOT DILUTE THEIR COMMON SHARES, EVER) What legit biz pays bills in shares of stock, and not just using their freaking cash? Who as a vendor would take shares or penny stock as payment for vague SEC filing entries such as "SERVICES RENDERED", LOL? WHO? Who does business like that? Hey Bob the plumber, can you come over and fix our pipes? Bob, "SURE NO PROBLEM". Hey Bob, "WE DON'T REALLY HAVE LIKE ANY CASH, BUT WE CAN POP SOME PENNY SHARE INTO AN E-TRADE ACCOUNT FOR YA, DOES THAT WORK TO COVER THE BILL?". Bob the plumber, "SURE, NO SWEAT, DO IT THAT WAY ALL THE TIME !", LOL !! WHO DOES BIZ LIKE THIS, WHO???

They earn a big ole GOING CONCERN WARNING and LIQUIDITY WARNING for a good reason, LOL !! They're barely solvent per their own SEC commentary and AUDITOR'S WARNINGS, aka GOING CONCERN, and that's despite Tomas hacking R&D down to a laughable $360 or so a month to pad the cash line and make um look like they're cash flow positive... $360 a freaking month R&D for the BS they tout on their website and social media as the supposed, "WORLD LEADER IN STEM CELL SCIENCE RESEARCH AND DEVELOPMENT" blah, blah, blah- but we can't get RMAT like numerous other companies already did, LOL !! What a load of bull crap that was.

https://www.sec.gov/Archives/edgar/data/1388319/000118518517001014/usstemcell10q033117.htm

Most recent SEC 10-Q, filed May 2017:

PAGE 13:

"NOTE 2 – GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS

The accompanying 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 financial statements during three months ended March 31, 2017, the Company incurred net losses of $2,472,107 and has a working capital deficit (current liabilities in excess of current assets) of $5,895,202. 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 primary source of operating funds in 2016 and 2017 has been from revenue generated from sales with additional cash proceeds from the sale of common stock and the issuance of convertible and other debt. The Company has experienced net losses and negative cash flows from operations since inception, but expects these conditions to improve in 2017 and beyond as it develops its business model. The Company has stockholders’ deficiencies at March 31, 2017 and requires additional financing to fund future operations.

The Company’s existence is dependent upon management’s ability to develop profitable operations, to obtain additional funding sources and realize revenues from the Asset Sale and Lease Agreement described herein. There can be no assurance that the Company’s financing efforts or revenues realized from the Asset Sale and Lease Agreement 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."

PAGE 27:

"Our Ability to Continue as a Going Concern

Our independent registered public accounting firm has issued its report dated March 15, 2017, in connection with the audit of our annual financial statements as of December 31, 2016, that included an explanatory paragraph describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern and Note 2 to the unaudited financial statements for the period ended March 31, 2017 also describes the existence of conditions that raise substantial doubt about our ability to continue as a going concern."

PAGE 34:

"At March 31, 2017, we had cash and cash equivalents totaling $619,109. However our working capital deficit as of such date was approximately $5.9 million. Our independent registered public accounting firm has issued its report dated March 15, 2017 in connection with the audit of our financial statements as of December 31, 2016 that included an explanatory paragraph describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern and Note 2 of our unaudited financial statement for the quarter ended March 31, 2017 addresses the issue of our ability to continue as a going concern."

PAGE 4:

TOTAL LIABILITIES : $8,900,927

TOTAL CASH AND CASH EQUIVALENTS: $619,109
"

PAGE 25:

"NOTE 13 — SUBSEQUENT EVENTS

In April 2017, the Company issued an aggregate of 3,335,685 shares of common stock for services rendered.
"

LOL, good ole vague "SERVICES RENDERED", paying bills by issuing shares of stock ? Again, who does business like this?

NOT LOOKING TOO GOOD ON THE OLE FINANCIAL FRONT IMO, LOL !!

GOING CONCERN and LIQUIDITY PROBLEMS...DESPITE selling-off one of their few and only assets, the ole stem cell banking biz. Without that occurring, their CASH ON HAND would be close to $ZERO in that SEC 10-Q.

NO RMAT...so what does USRM the little tiny penny stock, WHAT, WHAT do they really have of any value, or anything that can't be duplicated by at least 20 other far better capitalized actual businesses out there, businesses that MAKE PROFITS w/o selling dilution shares, and now even unloading assets to boot?

The "new clinics" aren't even being opened in the name of the corporate company, let alone appear to be OWNED by the public traded parent company and penny stock USRM. SO HOW DOES THAT "work" EXACTLY?

NSI is a group of chiropractors, they have ZERO, NOTHING to do with USRM in terms of any clinic ownership or whatever. SO how does that benefit USRM shareholders? HOW EXACTLY????? USRM, aka U.S. Stem Cell Inc of Sunrise FL, it does NOT even own U.S. Stem Cell LLC, only calls it a "33% investment", it's a PRIVATE LLC and not even held in the corporate penny stock company name? HOW DOES THAT "work" EXACTLY, LOL???

IN FACT, the NSI STEM CELL, LLC "clinics" filing with the Florida Secretary of State has already been VOLUNTARILY DISSOLVED, before it barely even got going, LOL !! The same dude now re-filed another new micro LLC and is calling it, "CORE STEM CELL" now, the same chiropractor guy.

http://search.sunbiz.org/Inquiry/CorporationSearch/SearchResultDetail?inquirytype=OfficerRegisteredAgentName&directionType=Initial&searchNameOrder=ROUFFEJONATHAN%20L170000039961&aggregateId=flal-l17000003996-8963234b-266b-4095-aa3d-129effa2a027&searchTerm=ROUFFE%20JONATHAN&listNameOrder=ROUFFEJONATHAN%20L120001458001

http://search.sunbiz.org/Inquiry/CorporationSearch/SearchResultDetail?inquirytype=EntityName&directionType=Initial&searchNameOrder=NSISTEMCELLBOCARATON%20L160001231890&aggregateId=flal-l16000123189-d2cd1951-d5b4-4461-a29c-84b9d75cbbd6&searchTerm=nsi%20stem&listNameOrder=NSISTEMCELLBOCARATON%20L160001231890

Just TAKE THE NAMES ON THE NSI FILING w/ the Florida Secretary of State, and the addresses and plug um in to Google, and you'll see THEY ARE FLORIDA CHIROPRACTORS who suddenly renamed their back-cracking practices, to fancy sounding "NSI STEM" or other BS names like, "TOTAL INTEGRATIVE HEALTH" or whatever. USRM DOES NOT OWN these locations- they were already existing chiropractors, with operational chiropractic offices.

http://doctor.webmd.com/doctor/eric-edgerton-md-d481d269-3be0-42c8-a483-2ca40cd8c834-overview

https://www.healthgrades.com/provider/jonathan-rouffe-8xbyz

https://www.healthgrades.com/provider/vincent-depasquale-xc4tk

THOSE THREE CHIROPRACTOR DUDES, they are ONE IN THEE SAME, BIZ ADDRESSES AND ALL, as good ole "NSI STEM CELL, LLC" and the supposed "NSI STEM CELL CLINICS", LOL !! Yepper. Just use the GOOGLE IS YOUR FRIEND METHOD for fact checking.

The NSI WEBSITE even lists the address and location of U.S. Stem Cell Clinic, LLC, but now lists it as being called, "NSI STEM CELL", LOL !! Gawd, they're all over the map- this tangled mess of Comella and Tomas side-gigs, private held micro LLC corps and all the rest of the tangled web. WHO DOES LEGIT BUSINESS LIKE THIS AS A PUBLIC TRADED COMPANY? WHO?

MAKES NO SENSE TO ME...NOT EVEN A FEW LOUSY PENNIES WORTH, which is where it's likely headed in the next few weeks IMO.