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LOL, well you’re not wrong. As I wrote in my sticky post, I expect a good deal of company compression, “numbers in the field”, too fractured at this point. Merger’s , some have already happened, or in process, but I would think many others to happen. The back drop to that is the economy and the major markets which will be going thru a squeezed margin effect. Right now, 10 out of 10 companies in this field think they have a shot. 9 out of ten will be wrong. And we haven’t even got to the price compression stage yet, that will happen when they condense. IMO
Good catch, yup, CW looks oversold to me to.
Already $1900 dollars traded today. Were on fire here. Over 5 grand in trades today?
Yup, and cvsi is included there, rounding up they have 0.01 percent.
Yup, shorts covered. Well good. Does explain why there was no follow thru, why it’s dropped since and why the volume is lower than normal . Dead in the water stock is still in play.
What makes this company go up and stay up will be increased sales numbers, let's see how they did in those, 4th qt, year end coming up.
Well alright, Volume is up today 575 thousand, and only down another 5 percent, sounds good. At this rate that coming down from that spike will take a couple more weeks.
Yes, going to be a lot of study on the filings coming up, and for me, that's for many different ones, certainly including this one.
Well, the fundamentals just kind of fall apart when your down in the 1 to 5 cent range. Your right on your numbers, but I don’t think it matters much when your down this close to zero.
No. I’m not missing anything. Cvsi got 1.6 million, has to pay back 2.0 million with in a 9 mo period, has to make weekly payments, short lease there, and secured the loan with the entire company’s assets.
Or if you prefer, providing they make those weekly payments, it only cost them 400,000 in that 9 mo loan. Good job cvsi. Question is what are they going to have to do next?
Or, 400k, they don't need no 400 k, can't use it, no need, all is well . . . . .
I’m expecting a lot of verification with the 4th and year-end filing.
Sure, it’s an interesting push the problem down the road, type of move. To stay in business, pay 400k for a 9-mo. loan. Beats filing for bankruptcy
I get it. Wonder what they will do for the next 9 mo’s?
The Streeterville note should be paid up in about 10 more weeks { roughly $ 560,000 to go.} And it would appear they haven’t defaulted yet, so good. Still getting a 9 mo note that they get 1.6 million and have to pay back 2.0 million all the while putting the company up to secure it, reminds me of something closer to loan-sharking , and it speaks to the desperation at hand IMO
They still have that Streeterville note out there. Steep is the only word I can use in securing it.
The Streeterville Note is secured by all of the Company’s assets as set forth in the Security Agreement dated August 19, 2022
The Note matures on May 19, 2023
From the 10Q below.
In August 2022, the Company entered into a note purchase agreement with Streeterville, pursuant to which the Company issued and sold to Streeterville the secured Streeterville Note in the original principal amount of $2.0 million. The Streeterville Note carries an original issuance discount of $400,000. The Company incurred additional debt issuance costs of $23,000. As a result, the Company received aggregate net proceeds of approximately $1.6 million in connection with the sale and issuance of the Streeterville Note. The Note matures on May 19, 2023 and the Company is required to make weekly repayments to Streeterville on the Note in the following amounts: (a) $40,000 for the first 8 weeks; and (b) $56,000 thereafter until the Streeterville Note is paid in full.
No interest will accrue on the Streeterville Note until an occurrence of an Event of Default, as defined in Section 4 of the Streeterville Note, if ever. The Streeterville Note provides for customary events of default, including, among other things, the event of nonpayment of principal, interest, fees or other amounts, a representation or warranty proving to have been incorrect when made, failure to perform or observe covenants within a specified period of time, a cross-default to certain other indebtedness of the Company, the bankruptcy or insolvency of the Company or any significant subsidiary, monetary judgment defaults of a specified amount and other defaults resulting in liability of a specified amount. In the event of an occurence of an Event of Default by the Company, Streeterville may declare all amounts owed under the Streeterville Note immediately due and payable. Also, a late fee and interest penalty of equal to either 22% per annum or the maximum rate allowable under law, whichever is lesser, may apply to any outstanding amount not paid when due or that remains outstanding while an Event of Default exists.
The unpaid amount of the Streeterville Note, any interest, fees, charges and late fees accrued shall be due and payable in full within three (3) Trading Days of receipt by the Company of any employee retention credit funds owed to the Company under the CARES Act, provided, further, that if at least $1.0 million in CARES Act proceeds are not remitted to Streeterville within
ninety days of August 19, 2022, the outstanding balance under the Streeterville Note will be increased by five percent (5%). The Streeterville Note is secured by all of the Company’s assets as set forth in the Security Agreement dated August 19, 2022.
Earning est has a pretty low bar now. Analyst Consensus is neg.11 cent, range is neg 23 cents to a pos 9 cents. That for the 4th qt anyway. For me it will all be about that Sec filing.
My other concern is what's the game plan is for paying off that debt load. But all that will come out with the release. We'll see.
Yup, I agree, and they will.
Now that is a good question ! He knows whats coming . . . .
Well, we all like facts. We’ll put out the current numbers and run a comparison when the Sec filings come out.
Let’s start with P/B which was already talked about here. For ref. under 1.00 would be a goal, however for some they want under 0.3.
Price to Book for cvsi is 5.72x, I know of no other in this sector that is higher.
Financial strength, nope. As they stated in the last 10Q they need to secure a loan. The problem with that is they have no operating profits and it certainly is questionable if their current assets would be enough.
And what about Profitability
ROE NEG- 250.71%
ROA NEG- 76.09%
ROI NEG- 228.01%
Growth rates - None
Operating Profit Margin NEG- 77%
Net Profit Margin NEG- 85%
Balance sheet, income statement, cash flow all falling since 2019.
In regards to earnings, they haven’t had any in 3 years. During that 3 year period they have went from over 6 dollars a share down to 5 cents a share.
These are all current numbers.
Now in less than 20 days I’m guessing we will have the 4th qt and year end numbers. We’ll see how they compare.
Also from the SEC filings we have:
The Company's operating results and accumulated deficit, amongst other factors, raise substantial doubt about the Company's ability to continue as a going concern. The Company will continue to pursue the actions outlined above, as well as work towards increasing revenue and operating cash flows to meet its future liquidity requirements. However, there can be no assurance that the Company will be successful in any capital-raising efforts that it may undertake, and the failure of the Company to raise additional capital could adversely affect its future operations and viability.
And from that “The Company's operating results and accumulated deficit, amongst other factors, raise substantial doubt about the Company's ability to continue as a going concern”
Operating results in regards to this company shows losses every quarter for 3 years in a row. I don’t believe there will be much help from the operating results, I do believe there will be even more losses, which I would think leads to a business loan from somewhere.
“ there can be no assurance that the Company will be successful in any capital-raising efforts”
there have been no capital-raising in regards to business loans in Oct, nor Nov, Dec, Jan, and here we are in Feb. So, at what point do we entertain the-
“and the failure of the Company to raise additional capital could adversely affect its future operations and viability” .
I think it’s a fair question. And so, what exactly are all the implications? All IMO
Wow, alright, fine.
The biggest thing is CVSI can’t sell enough of the product they make to survive. The 3 years of falling sales has produced this 5-cent stock. That’s what the topic should be, why they can’t sell.
If they were able to sell their product profitably in volume there would be no arguments on this board, no unhappy people, no looking back, no storytelling, no comparing to other companies. No, the talk would be what are they going to do next, what are the analysts saying today and how great our management team is.
That is the biggest thing.
They are getting close to the end of the line, the company is in business to sell their product profitably, they are badly failing on that, and if they can’t control and improve that nothing else will matter, they will be out of business.
That is reality.
Good stuff, thanks Darth.
Man do you see that. RSI almost bottomed and with a double breakout on the very close 55/56 mark. I agree wouldn't take much to get that flying. Good chart on CW. Thanks
Well right off hand I can’t say. I don’t believe they became exempt from filing. Best guess would be after it became registered the share total hasn’t changed by more than 2 percent. BTW you don’t have to file every year unless there are changes. You were also right about barcharts, it’s a expanded narrow field of trailing indicators. You know you can always move from 5 boards to 6, just a thought.
So, what your saying is same old,same old. LOL
I’m aware they are two different people, and those posts were not directly related.
In regards to Mona 3 I went with what you see below. If you say all of that is incorrect so be it.
https://www.linkedin.com/in/michael-j-mona-iii-812424b2?original_referer=https%3A%2F%2Fwww.google.com%2F
https://theorg.com/org/cv-sciences/org-chart/michael-j-mona-iii
https://patents.justia.com/inventor/michael-j-mona-iii
Also
Mona, who retired from the company Jan. 22, was barred from serving as an officer or director of any company whose shares are publicly traded as the result of the settlement of a 2017 fraud case brought against him by the U.S. Securities & Exchange Commission (SEC). Mona settled the case in June last year without admitting guilt, but also paid $40,000 as part of a resolution with the government.
Mona’s son, Michael Mona III, also a co-founder, became Chief Operating Officer at the moment of the senior Mona’s retirement in January. He’d previously served as President, a position that was eliminated.
The Company also announces that Michael Mona III has resigned from the office of President of the Company, and the board of directors has eliminated the position. Joseph Dowling shall continue to serve as the Company’s Chief Executive Officer and Michael Mona III shall continue to serve as the Company’s Co-Founder and Chief Operating Officer.
And you are correct, you have never been my personal assistant. You have a good weekend now.
WOW! Now this is a big deal for Charlotte's Web !!! Thanks again Darth!
What is it.
The hemp industry is about to “play ball” at the upcoming 9th Annual NoCo Hemp Expo at the historic Broadmoor Resort & Convention Center in Colorado Springs, March 29-31, 2023.
Who’s going to be there.
Look at the list of vendors
https://www.nocohempexpo.com/2023-attending-companies-and-organizations/
Looks like a list of anybody who is anybody!
With Keynote Speakers from Major League Baseball and Charlotte's Web
Nice to see Charlotte's Web leading off, pun intended.
“Leading off this year’s most anticipated gathering of hemp industry leaders will be a special keynote conversation featuring Charlotte’s Web Co-founder and Chief Operating Officer Jared Stanley, along with two senior representatives from Major League Baseball (MLB): Jon Coyles, Vice President of Drug, Health & Safety Programs, and Uzma Rawn, Senior Vice President of Global Corporate Partnerships”
Nice to see, all the industry leaders in one place, the who’s who if you will. A lot of shared thoughts/visons, going on no doubt with all these leaders.
And as they call it 'A Historic Milestone for the Sports and the CBD Industry'.
It’s nice to see MLB getting on base with CBD. Very nice.
You can read the whole PR. here
https://www.digitaljournal.com/pr/news/noco9-joins-the-big-leagues-with-keynote-speakers-from-major-league-baseball-and-charlotte-s-web
Going over some older posts concerning Mona Jr. Below was post # 48394 from this board that does give a little more background on what occurred back in April of 2019. Just previous history but it’s a interesting read on where this company has been.
Koelma
Re: None
Sunday, April 28, 2019 10:17:45 PM
Post#
48394
of 79662
Michael Mona Jr was paid $7,418,000.00 (SEVEN MILLION FOUR HUNDRED EIGHTEN THOUSAND DOLLARS) in 2018 along with being GIFTED Twelve (12) MILLION stock options issued at an average of $.38 for a stock selling at $5.50ish (a $61,440,000.00 GIFT - SIXTY ONE MILLION FOUR HUNDRED FORTY THOUSAND DOLLARS) given to Michael Mona Jr CVSI’s suspended former CEO. Almost SEVENTY MILLION DOLLARS. His son Michael Mona III was also given $681,752,000.00 as “co-founder and CEO.” This can be seen in the chart below and the 14F files After the Market closed Friday.
[Suppressed Image]
Michael Mona Jr. who in 2018 became BARRED from holding ANY position in ANY public company not including the hefty fine he paid along with the SEC Suspension he received. SIXTY ONE MILLION FOUR HUNDRED FORTY THOUSAND DOLLARS to a convicted fraudster plus SEVEN MILLION FOUR HUNDRED TWENTY THREE DOLLARS, almost SEVENTY MILLION DOLLARS. CVSI LOST money in 2015, 2016, 2017 and in 2018 self reported a profit of $10,001,000.00 or 1/7th the amount given to Mr Michael Mona. The net profit was signed off on by their CPA Anton and Chia but that presents another problem.
The SEC disciplined CVSI’s accountant and auditor Anton and Chia stated in the citation below as clear fraud, manipulation and subsequent discipline
http://www.lexissecuritiesmosaic.com/gateway/sec/admin-proceeding/34-82206.pdf
Are they to be trusted?
In 2011, Michael Mona was on trial in California for fraud. After the trial, the court (Judge Riegle) stated; “Mr. Mona intentionally defrauded the plaintiff by “misrepresent[ing] material facts and conceal[ing] other material facts.” The California Superior Court found that Michael Mona committed fraud and awarded plaintiff Far West a $17.8 million dollar judgment against Michael Mona — both individually and in his capacity as trustee of the Mona Family Trust. In order to avoid paying the proceeds of the Judgment Mr. Mona wanted to file Bankruptcy but he couldn’t. He had previously filed in 1999 (case # 9912412) discharged on January 4, 2006. He therefore formed the “Mona Family Trust” and moved ALL his and his wife’s assets to The Mona Family Trust. However, The California court also found that Michael Mona Jr. was the alter ego of the Mona Family Trust, and that both Michael Mona Jr. and the Mona Family Trust were liable for damages awarded to Far West. Far West then domesticated the California judgment in Nevada against Michael Mona and the Mona Family Trust for damages caused by his fraud.
(Source: Far West Indus. v. Mona, et al., California Superior Court, Riverside County, No. RIC495966.)"
The collection of this judgment by Far West is still being litigated today.
Source: https://caselaw.findlaw.com/nv-supreme-court/1750014.html
Additionally On December 14, 2017, the USPTO made a final rejection decision on CVSI Patent Application for their drug CVSI-007 and mailed CVSI a letter indicating the final rejection status of its Patent on December 20, 2017. Defendants CVSI Failed to Disclose to Investors That CV Sciences, Inc.’s Patent Has Been Rejected. After being notified of both the non-final and subsequent final rejection decisions on the Patent, Defendants failed to make any disclosures or statements regarding the Patent’s status, despite the Company’s self-proclaimed “effective” disclosure controls and procedures. There is currently a court approved class action suit working its way through the courts against Mona, current CVSI CEO Joseph Dowling and of course CVSI.
Source: Case 2:18-cv-01602-JAD-PAL Document 1 Filed 08/24/18
Link: http://securities.stanford.edu/filings-documents/1067/CSI200_02/2018824_f01c_18CV01602.pdf
The stockholders of CVSI are counting on an “uplist” to NASDAQ filed 250 days ago.
TWO HUNDRED FIFTY DAYS. A typical NASDAQ Listing takes 4-6 weeks.
Source: NASDAQ Listing Requirements Page Four
Link; https://listingcenter.nasdaq.com/assets/initialguide.pdf
With Mona’s fraud conviction, SEC Suspension and fine, the discipline of CVSI’s accountant and auditor Anton and Chia as clear fraud, manipulation and subsequent discipline, along with Mona Jr leaving his son Michael Mona III at CVSI in the official title of Co-Founder & Chief Operating Officer being paid $681,752.00 in 2018 not including HIS stock options as his proxy it’s pretty clear who always has and is still both running CVSI and gaining more then all its stockholders combined. A convicted fraudster and SEC Suspended and Fined bad actor, along with holding 25 % +/- of the 99,000,000 share float it certainly appears to be Michael Mona Jr.
Per SEC rules, no company may raise capital if any officer, director, promoter or beneficial owner of 20% or more of its equity is a “Bad Actor”.
Is Michael Mona Jr an SEC defined “Bad Actor?” He certainly qualifies under ALL The SEC “Bad Actor” definitions. Overview of the Bad Actor Rule
The “Bad Actor” rule is codified as new paragraphs (d) and (e) to Rule 506. Rule 506(d)(1) provides that the exemptions in Rule 506(b) and Rule 506(c) are not available if the issuer or any associated person is statutorily disqualified. This includes all of the following:
1. issuer = the company selling securities, any predecessor of the issuer (prior entity), and any affiliated issuer
2. associated persons =
· Directors, general partners, and managing members of the issuer;
· Executive officers of the issuer, and other officers participating in the offering;
· 20 percent beneficial owners of the issuer;
· Promoters;
· Investment managers and principals of pooled investment funds; and
· Any person compensated for soliciting investors.
Source and Citation:
https://www.sec.gov/info/smallbus/secg/bad-actor-small-entity-compliance-guide.htm
https://www.lexisnexis.com/legalnewsroom/banking/b/banking-finance/posts/rule-506-d-bad-actor-disqualifications-who-s-a-bad-actor-and-why-are-they-bad-part-i
After numerous conversations with Marc Blau head of the L.A. Office of the SEC Microcap task force amongst other SEC and NASDAQ officials who spoke under the promise of anonymity CVSI will not be considered for any actual stock exchange for five (5) years if they’re not suspended prior to then.
Here is a little help on that Darth. And is from Nov 4th 2022
CBD Co., Founder Ordered To Arbitrate Over $5M Tax Bill
A Nevada federal judge ordered a CBD company fighting with its co-founder over who should pay a $5 million tax bill to resolve the issue in arbitration, saying federal laws and contracts the parties signed require it.
The key is “ , saying federal laws and contracts the parties signed require it”
I don't know what that contract states.
Linked in. https://www.linkedin.com/in/michael-j-mona-iii-812424b2?original_referer=https%3A%2F%2Fwww.google.com%2F
If you have a better source, post it.
Your right CW is at 44 cents, cv at 4 cents. But that seems off, I mean CW is certainly worth more than just 11 times more valuable than cv. Well have to recheck in a week or two when cv is in the 0.03's to be fair
4 hours in and we already have 4000 dollars in trades. On fire for this little penny stock.
Well, thoughts. While legislation can come in short order, and I hope it does, it seems were in a 1 step forward, 2 steps back and regroup stage. I thought SAFE had a real good chance had they decided to vote on it, but it is what it is. Right now it appears that Rep/Dem are more interested in rock throwing, regardless, the House needs to get it’s act together. I think the first part of this year the focus is going to be on the deficit, economy, inflation and where the interest rates are going to, as it should be, those are big issues this year. From a tactic point of view, politics wise , next year would be a bigger bang for the buck election wise. Anyway just a thought.
Sweet! That should get a little traction going.
It's all about that 10k. I can wait the 15 days. " Form 10-K within the 15-day extension period from the original due date of March 1, 2023"
Michael J Mona, III
Chief Operating Officer at CV Sciences
San Diego, California, United States
Chief Operating Officer & Co-Founder
CV Sciences
Jan 2013 - Present10 years 2 months
As a co-founder and COO of CV Sciences, I oversee the day-to-day operations of our business, in addition to managing supply chain, product development, European and domestic production, laboratory operations, and fulfillment. Further, I am responsible for leading, managing and growing our current and future operations as we expand our distinct divisions: pharmaceuticals and consumer products.
Perhaps he would be able to answer this case's questions. I mean after all he should have some insight being the current COO
Ah yes, way back in the heyday, the good times. Since that time the stock was went from 6 dollars to 4 cents. So, what did it really do for them? I mean after they came out with this post almost 4 years ago they have dropped 99 percent. geez, come on.
On September 12, 2022, the court denied the motion to dismiss the case. On November 3, 2022, the court ordered the case into arbitration.
Darth posted under post 79616 the full sec filing part on this
So once again what are those goodwill numbers and why in the world would you highlight them? Especially on this comapany.