Why is IHSI at no bid? Short answer - they're headed for a reverse split.
Longer answer:
1. $950k in convertible debt owed on 6/30 means at least 19 BILLION new shares need to be converted before the debt is extinguished as the shares are converted at about $.00005 each.
2. $750k owed to the IRS which needs to be paid in cash. Until then the IRS has a lien against the company.
3. Through 2 quarters of 2017 the company converted $150k in convertible debt notes and interest into 2.5 BILLION shares at about $.00006/share. Despite those conversions, only $34k in convertible debt came off due to new convertible debt issued.
4. On July 11, 2017, the Company entered into a convertible note payable to replace four existing convertible notes payable with the same noteholder for a total of $147,463, equal to the outstanding balances on the four convertible notes it replaces. The new note carries interest at a rate of 12% per annum, is due on April 28, 2018 and is convertible to common stock of the Company at the option of the holder at a rate equal to a 42% discount from the lowest trade price in the twenty trading days prior to conversion. Additionally, the noteholder was granted an unconditional first priority interest in and to all property of the Company and its subsidiaries until the outstanding balance is $0. The Company may not prepay the note in cash
5.They are obligated to pay Crescent's former owner $150k twice a year, in Feb and August, beginning this month until $1.3 million plus interest is paid. They however have a working capital DEFICIT of over $5 million.
6. Last quarter, the company was only able to generate $25k in GROSS profit (revenue minus DIRECT costs of revenue) on $1.4 million in revenue and that resulted in a $400k LOSS from Ops/Interest for the quarter.
When you think "there can't be that many people falling for this", remember the Bernie Madoff story and recall that over $50 BILLION of smart money fell for a great story.
