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Quote LOL, "Introduced by the co founder of a billions of dollar investment firm?"
AND, when the shares were RECENTLY a literal 5 CENTS A PIECE- did this "co founder of a billion" blah, blah, blah BUY SO MUCH AS A $5 spot worth? Has this "billions of dollars" blah, blah person ever PUT UP A MAJOR INVESTMENT IN THIS COMPANY, OCAT? EVER?
All one needs to know IMO. Talk is cheap, like an "introduction". Putting up the funding- that's a whole nother story. 5 CENTS A SHARE- and none of these big boys (including the insiders and Lanza himself) opened their wallets and bought so much as a lousy $5 bucks worth. By contrast, they were all net sellers and dumpers of their own free shares.
Again, all one needs to know IMO.
And BAMMO- the MM "CDEL" shows back up- and tanks the Bid/Ask in a blink.
Just like that. They got a few shares popped off at an 18% premium, and now erased it in a blink and now dropped both the Bid and Ask right back down to where it was yesterday. Looks like "game over" already for this AM, at least for now.
0.0056 / 0.006 (350000 x 154500)
If one had bought only 20 minutes earlier in the day, they'd now take approx an 18% loss to unload even $500 bucks worth of shares, right back to the same MM that sold um to them earlier. If that ain't a racket, then I don't know what is?
Amazing. Simply amazing. It does 200K shares on the big +18% "up" move day- and it's been doing 3 million plus "average" for the past month as it made new all, all time lows and some days reaching as high as 20 MILLION shares to the down side. But they moved it supposedly "up" 18% on 200K shares traded?
How exactly does that all "work"? I surely don't get it?
CDEL moved down on the Ask now and has that for sale block and BMAK slid way back down, only a few positions off 1st position and parked their 10K share block now at .0065. That's the "capping" block IMO. Right back to their usual bag of tricks, the "dilution MMs", the usual suspects.
This "meeting" and "talk" is nothing but a pure socialite event IMO. A travel junket and a wine n dine. I'd expect it to have ZERO effect or relationship to the realities of OCAT's poor financial situation and lack of ability to raise major funding or execute on it's key trial(s) etc.
Just look at the roots of this "common good" thing- whatever they call it. People pay to join it- big bucks. It's roots are in the "entertainment industry" and Hollywood of all places. It's very typical of a socialite junket club/circuit IMO. These things like this are a dime a dozen and all over the place for the rich, the academia "connected" of certain alumni roots, friends of friends, etc. Never amount to a hill of beans that I've ever seen- just a 501c3 tax donation write off, some food and drinks and hob-knobbing around for a night or whatever.
http://en.wikipedia.org/wiki/The_Common_Good_%28non-profit%29
http://www.averagesocialite.com/2015/04/the-common-good-forum-may-14-2015-nyc.html
I mean- when it gets written up in a blog called "THE SOCIALITE" - what does that say about it, LOL?
It won't amount to a hill of beans as far as this stock or this company's performance or business situation etc IMO. Not a chance. A non event to me. Just a travel junket I'd assumed paid for from the company's travel expense line, from its dwindling, already low cash line.
Took over ONE HOUR to find a buyer to nibble on the ULTRA WIDE SPREAD. It opened "up" at plus 11% on a whole $729 bucks traded- then the MMs cranked the spread even wider to .007, LOL. (MAKE THAT AN 18% SPREAD, LOL. Holy cow. The mm's are fa sure "gaming" it IMO. Wow)
But they can't seem to find very many nibblers to take on that mega spread at .007, so it sat for at least 1 hour between trades. The usual slow-mo, ultra wide spread mode- typical IMO after the dilution MMs have run a hard down tranche like the past several weeks, the one that drove it to new, all, all, all time lows.
It's the "breather" days it looks like- the MM's are on the hunt for any buyers they can drum up here it looks like. The volume has fallen off a cliff- which tells me it's getting real hard to get any buyers to step in and nibble when they crank these spreads like the old days. It's getting hard it seems to find any buyers at all IMO. Just look at all of 2015 so far and the percentage the stock price has massively declined and the new ultra lows it just put in recently and all.
Watching a 15% spread from Bid to Ask always amazes me. Who would buy at +15% knowing if they wanted to sell 3 minutes later, they need to take a 15% loss to sell even $100 bucks worth?
Makes no sense to me personally? Never understood that?
0.0059 / 0.007 (44000 x 205435)
The MM's were flashing as much as 500K shares on that Ask, but half already vanished- it's back to that 200K or so number. Look like they might of just got someone to nibble on 45K on the mega spread- as it was 245K shares on that Ask. (so they sold 45K x .007 = $315 bucks worth for a 15% premium. (18% PREMIUM !!, LOL) Wonder if that's a retail buyer or just some pro trading desk throwing a few bucks out there to make it look like it's moving "up" by a big percentage? Probably just a micro retail buy- someone willing to pay a 15% spread IMO)
Spread is cranked WIDE OPEN now- just like last few minutes of yesterday.
0.0059 / 0.0066 (10000 x 290000)
See what the volume does and if it posts any opening trades right away- or if it sits.
(BINGO ! The MM's just got someone to bite, 1 minute after open, bite on that huge spread of 11% plus, but the share count on the Ask didn't change a blip. How's that "work"? A 100K plus shares print- but the Ask share count doesn't budge one share, LOL ! Looks to me like the MM's are in "gaming it" mode again. I've seen this several times now since start of 2015- this particular pattern, learning to recognize it well now. Notice, the Bid is now "propped up" with a 10K share in the "parking place", the reverse of when BMAK or CDEL park that 10K share block on the Ask. It's the "pattern" for sure IMO. Seen it, and recognize it well now.)
Stacked huge to Ask/sell-side but on a mega wide spread- like these MM's are on the hunt now for any buyers who'll bite on that huge spread. The MM's did this only a month or so ago- tried to make it look like a move "up", but then just drove it to newer lows immediately after that, very quickly.
Looks to me then like the dilution MM's are gonna try and "work" it a bit perhaps, try and game up any buyers out there. They did this a month or so ago- it lasted a few days or so before it plunged to new all, all, all time lows.
Very interesting IMO. All the dilution MM "usual suspects" just backed way, way off on the Level II, minutes before close yesterday after it flat-line traded all day long. And then the spread at close was Grand Canyon wide.
BMAK and CDEL within minutes of the close yesterday moved way, way off on the Level II, and now have done the same this AM, just like they did for a week or so a month or so ago. Only to come back days later like a pile driver, crusher machine after they'd let it get a few "breather" days.
Looks like they're gonna continue it on in to today- at least so far this AM. Some big, pro hedge/dilution (probably Magna or Asher or one of the convertible debt groups IMO) some firm must of covered their short or finished a convertible debt conversion or something and now wants to give it some "breather" days. Again, seen this many times now since beginning of 2015 so far- only to see the same dilution MM's step back in only days or maybe a week later and run it back through the crusher.
Will be fascinating to me to see how they "game" this at this point. How they just let off and vanish and then crank that spread to like 10% plus in a blink, like this AM. Major interesting.
LOL quote what?, "RPE Therapy Works! Creative Destruction, InProgress, Of Eylea! "
RED, heading for barely $6 and maybe a test of the $5's, cause you know, "IT WORKS" supposedly, LOL.
Well, it seems that "the market" must not have gotten that memo about that myth yet? Also, OCAT Sr mgt must not of gotten it either per their own public statements and the signed statements they made in their own recently SEC filed 10-Q? Cause THEY SAY they need a LOT MORE MONEY for a LOT MORE TESTING and a LOT MORE CLINICAL TRIALS and a LOT MORE TIME (as in YEARS) so they can "try" and "prove" that what they call their "product candidates" (NOT "products" yet, but "candidates) so they can "try" and PROVE THEY "WORK", as nothing has been "proven" yet about anything.
If this myth is true that this just all "works"- then why waste another $100 MILLION plus and YEARS to conduct a large phase II trial and then eventually, possibly (if they don't fail in phase II) - why then an even larger and more expensive Phase III trial(s) to "try" and PROVE THIS WORKS? Why do that? Why not just sell this mythological product/treatment today if it "WORKS" as stated? Why spend boatloads of money and waste years of time if it all just "works"??? Why? Why do that?
From the highly respected science journal NATURE:
www.nature.com/news/stem-cells-pass-safety-test-in-vision-loss-trial-1.17451
Lanza doesn't say "IT WORKS"??? He says CAUTION and MORE TESTING NEEDED to "prove" anything? He didn't dispute or retract or question the NATURE article? Why? He DOES NOT EVER SAY "it works" - he says MORE TESTING NEEDED, lots more testing and lots more MONEY.
The VERBATIM article, again, from the highly respected science journal, "NATURE"-
"A company that has spent more than 20 years trying to develop treatments based on embryonic stem cells is taking encouragement from small, preliminary tests of the cells in people with progressive vision loss. If the technique continues to impress in larger trials designed to assess its effectiveness, it could become the first therapy derived from embryonic stem cells to reach the market.
A study of four patients, published in Stem Cell Reports on 30 April1, shows that injection of retinal cells derived from stem cells is safe for people with macular degeneration. The report follows similar results from a trial in 18 patients that was published last October2.
Both studies were meant to assess safety only, and neither included a control group. In the latest study, conducted by researchers in Korea and the United States, three participants were able to read 9–19 more letters further on an eye chart a year after treatment — but two of the three also gained some ground in their untreated eyes."
MORE...
"“This bodes well,” says Robert Lanza, chief scientific officer at Ocata Therapeutics in Marlborough, Massachusetts, and an author of the study. “But I think we need to interpret this improvement cautiously until more controlled studies are done.”
The sample size is too small to warrant much excitement, cautions ophthalmologist Tien Yin Wong of the Singapore National Eye Centre. “At this stage it’s hard to say if the visual improvement will be sustained,” he says. “But it’s very promising.”
Lanza speaking to a local MA newspaper-
www.telegram.com/article/20141014/NEWS/310149525&Template=printart
"We treated the last UK patients last month, and they also have not seen any safety issues related to the transplanted tissues themselves, either," Dr. Lanza said.
Advanced Cell now hopes to launch a 100-patient, phase 2 study in Stargardt's patients by the end of the year, according to Dr. Lanza.
A second, smaller phase 2 study in patients with age-related macular degeneration would follow, he said. Any treatment might not be ready for FDA approval until 2020, Dr. Lanza said."
THOSE are the "FACTS" as Lanza has stated um "on the record"- not the other myths that this is a DONE DEAL and SLAM DUNK and already "proven" to work, blah, blah, blah.
That was dated Oct 14, 2014 and the END OF YEAR phase II DID NOT HAPPEN.
Where's the BIG MONEY? Why don't they ever attract any large capital investments- especially any "high quality" money (non dilutive) or at least not cash-for-dilution-shares deals with discounts and all the rest attached to them? Why? Why is that? Why? They live on low grade dilution money and have NO WHERE NEAR the funds to get a large Phase II even started- let alone funded to completion? Why? Why is that?
It took like FIVE YEARS to get a micro sized phase I done. They've yet to even start the large and magnitudes more difficult and magnitudes more expensive Phase II trials (with control arms and placebo blinding)- why? If the phase I took about FIVE YEARS, then how long will these phase II trials take- the one(s) that were supposedly going to be fully funded and rocking and rolling by END OF 2014 and it's now almost half way through 2015 and the trial(s) are in the parking space, going nowhere and the latest Lincoln cash is dwindling down at an alarming rate. Why? Why is that?
www.sec.gov/Archives/edgar/data/1140098/000101968715001797/ocata_10q-033115.htm
Just filed OCAT 10-Q, PAGE 13:
"Our ability to become profitable depends upon our ability to generate revenue. We do not anticipate generating revenues from product sales for the foreseeable future, if ever. "
PAGE 7:
"The Company has no therapeutic products currently available for sale and does not expect to have any therapeutic products commercially available for sale for a period of years, if at all. These factors indicate that the Company’s ability to continue research and development activities is dependent upon the ability of management to obtain additional financing as required."
PAGE 7:
"The accompanying consolidated financial statements have been prepared in conformity with GAAP which contemplate continuation of the Company as a going concern. However, as of March 31, 2015, the Company has an accumulated deficit of $356.2 million, recurring losses from operations, and negative working capital which raise substantial doubt about the ability of the Company to continue as a going concern. The ability to continue as a going concern is dependent upon many factors, including the Company’s ability to raise additional capital in a timely manner. The Company has no expectation of generating any meaningful revenues from our product candidates for a substantial period of time and must rely on raising funds in capital transactions to finance our research and development programs. Our future cash requirements will depend on many factors, including the pace and scope of our research and development programs, the costs involved in filing, prosecuting and enforcing patents, and other costs associated with commercializing our potential products. Accordingly, management’s plans to continue as a going concern contemplate raising additional capital including the prior execution of an agreement for a $30 million equity line in late June 2014, of which approximately $12.5 million remains available as of March 31, 2015. There can be no assurances that management can raise the necessary additional capital on favorable terms or at all. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern."
PAGE 24:
"We cannot assure you that public or private financing or grants will be available on acceptable terms, if at all. Several factors will affect our ability to raise additional funding, including, but not limited to, the volatility of our common stock and the broader public equity market, especially public equities issued by other pre-commercial biotechnology companies, and our ability to raise capital through non-dilutive transactions such as out-licenses. If we are unable to raise additional funds, we will be forced to either scale back our business efforts or curtail our business activities entirely. As of March 31, 2015, the Company has an accumulated deficit of $356.2 million, recurring losses from operations, and negative working capital which raise substantial doubt about the ability of the Company to continue as a going concern.
"
Most recent filed 10-K, PAGE 16:
"
Other than our arrangement with Lincoln Park, we have no sources of debt or equity capital committed for funding. Recent attempts to raise capital in the public equity markets have proven unsuccessful, and we can provide no assurance that we will be successful in any future funding effort. The timing and degree of any future capital requirements will depend on many factors, including:
"
Same 10-K, PAGE 16:
"We will require substantial additional resources to fund our operations and to develop our product candidates. If we cannot find additional capital resources, we will have difficulty in operating as a going concern and growing our business."
Same 10-K, PAGE 16:
"Our independent auditor’s report for the fiscal year ended December 31, 2014 includes an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern.
Due to the uncertainty of our ability to meet our current operating and capital expenses, in their report on our audited annual financial statements as of and for the year ended December 31, 2014, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern. Recurring losses from operations raise substantial doubt about our ability to continue as a going concern. If we are unable to continue as a going concern, we might have to liquidate our assets and the values we receive for our assets in liquidation or dissolution could be significantly lower than the values reflected in our financial statements. In addition, the inclusion of an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern and our lack of cash resources may materially adversely affect our share price and our ability to raise new capital or to enter into critical contractual relations with third parties."
Same 10-K, PAGE 46:
"We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Ocata Therapeutics, Inc. and Subsidiary as of December 31, 2014, and the related consolidated statements of operations, stockholders' deficit, and cash flows for the year then ended and our report dated March 16, 2015 expressed an unqualified opinion thereon and included an emphasis of a matter paragraph relating to an uncertainty as to the Company’s ability to continue as a going concern.
/s/ BDO USA, LLP
Boston, Massachusetts
March 16, 2015"
"
But the myth is, that it all supposedly "JUST WORKS"??? LOL !
Stacked HEAVY on the Ask/Sell side again this AM-
0.0051 / 0.0055 (18800 x 335615)
That's about 17 to 1 stacked to the sell-side again. Looking real weak here again this AM already, IMO.
Bidding only .0051, holy cow. And only about $1,100 bucks worth presently showing on that Bid and then it's the .004s, look out below that. Wow.
So it still looks like the Bid is real thin in the low .005's and then it's the .004's below that (Maybe the big "news" about giving some "talk" in London hasn't gotten out yet, LOL?? Wonder what that trip costs- from the $79K total cash left on-hand in the last 10-Q?)
Just don't know what possible catalyst is going to ever turn this off this essentially, now 1 yr sustained down-trend, a down trend that's brought the common shares to new all, all time lows?? It's sitting right near the new all, all, all time low of .0045 and no "PR" or the 10-Q or anything seems to be creating any buying pressure?
Maybe it's being overwhelmed by massive common share dilution? Possibly? The last 10-Q showed that about 87 MILLION shares of pure common share dilution were issued out in a period of only a couple of months (the period from the 10-K release to the just released 10-Q). "Maybe" it's those massive amounts of dilution shares kinda sorta having an effect on the share price? Possibly? That, and qty-5 more, toxic, floorless convertible debt deals being done already by just April of 2015? (see the 10-K and recent 10-Q: Vis Vires, Daniel James, KBM Worldwide, etc. All are floorless, convertible debt financing deals. Oh, and then MAGNA being tapped several times already too- that's highly dilutive financing money too)
Don't know- just don't see any rush of buyers or buying pressure knocking the door down here to get these shares at 1/2 CENT?? Wonder how that big "share buyback" thingy program is going along so far, LOL? Doesn't seem to have made much difference it seems?
http://finance.yahoo.com/news/bioheart-board-directors-authorizes-repurchase-150000370.html
Funny, the ole "share buyback", I don't think got even a passing mention in that "conference call" thingy and not a word of it that I could find mentioned is in the just filed, most recent 10-Q? Wonder why that is?
LOL quote, "With OCAT Dr. Robert Lanza as "Featured Speaker" What are the odds that no one would listen to him? "
Well, looking at the falling share price and their fast dwindling cash in the bank and SEC filed 10-Q plastered with "GOING CONCERN" warnings- it appears that the ole free market must not have gotten the memo on this latest "speaking" junket outing? Maybe the market just isn't impressed with more "talks" being given at non profit socialite junket type events? Just "maybe"?? People and companies pay big bucks to join these types of socialite networking gigs like "The Common Good" or whatever it's called- I see ZERO connection to it driving any company investment or funding etc. These "talk" gigs and conference circuits are a dime a dozen- every company I've ever known attends these wine-n-dine deals and trade shows and all the rest and it's never amounted to a hill of beans that I ever saw. Just burning some cash from the travel expense line of their dwindling cash-on-hand IMO.
A big giant "big whoop" non-event IMO. SHOW ME THE MONEY- not the low grade Lincoln credit card dilution, month to month survival, pay the big salaries coin, but the "big" money that will fund a large, FDA quality Phase II from start to finish- the ole Phase II that HAS NOT STARTED YET as we head for mid 2015. It's 6 MONTHS BEHIND SCHEDULE already- just that much longer and later to know if it goes bust and fails or that much longer to know if it has a remote chance at succeeding and moving them to a much larger, even more expensive, YEARS to complete ole Phase III trial(s).
YEARS more of waiting on this one. YEARS, let along a giant question mark as to how they'll ever raise even close to enough cash to fund just the "eye" stuff- w/o diluting this thing right back to the sub $1 range all over again. "Talks", big whoop. How bout EXECUTE ON A SUCCESSFUL BUSINESS PLAN and raise some real capital and hit some metrics on-time, eh? Maybe try that? Or is this the Gary Rabin days all over again? It actually traded higher as an OTC penny stinker with ole Gary running the show- which is pretty stunning IMO.
Day's low .0049 on VERY HIGH VOLUME, wow.
The MM's are still just running this one through the crusher it seems.
I guess 87 MILLION shares of pure dilution (see latest 10-Q, just filed and compare O/S share count to the 10-K filed just before that)- I guess that much mass share dilution has a major effect on the common shares and how they trade? Maybe? Plus qty-5, FIVE more toxic, floorless, convertible debt deals in 2015 already probably can't be helping much (see the 10-K and recent 10-Q: Vis Vires, Daniel James, KBM Worldwide, etc)
This thing just about revisited its all, all, all time new low of .0045 again today. .0049 today is getting pretty darn close.
If these dilution lending firms, the hedge boys, the MM's - if they take this down hard on another leg down, this may see the .003's here soon IMO. It sure seems to be setting up that way to me. Easily the .004's again- well, it actually touched the .004's already again today, now didn't it.
Brutal in here on this one right now- I don't see what's possibly going to reverse this massive, 1 yr down trend at this point? "PR" doesn't even seem to make a blip of difference anymore and they just filed the 10-Q and the PR about the supposed "great quarter" and all? I mean what else is there left to change the trend?
Just seems like mass dilution is the power force now on how the shares trade- that's the way it looks to me. What can reverse that- I don't see it?
Looks like Lincoln is back on the SELL/DUMP side again.
I don't think it's any more complicated than that. OCAT lives off of dilution- discounted share dilution. For all intents and purposes- continual, non-stop, on-going share dilution.
It's the nature of a firm like Lincoln to let the stock price "come up for air" once in a while, kick up a bit if possible- so they can sell/dump right back into the strength for greater profits.
Living off of continual, low grade dilution money has real consequences to the common shares- it's just that simple.
ACTC/OCAT didn't get to a literal 3 BILLION plus shares outstanding and a literal 5 CENTS share price cause dilution has no consequences (not to mention over 1/3 of a $BILLION dollars in sunk capital now, never producing so much as ONE CENT of ROI for investors). Now, they're just continuing more of the same- pure dilution, on-going, never ending.
They just lost $7 million in the most recent 10-Q just filed- and didn't fund DIME ONE of their major, supposed "up coming" big ole Phase II. That $7 mil went down the drain to just good ole overhead, salaries and a little R&D spending. That's about it.
Simple IMO.
RED. Sold right off into a micro blip of any strength this AM.
Guess those ole "talks" and "conferences" maybe just don't cut it in the big boy's market of the NASDAQ?
The hedge fund short boys are gonna likely pile on this in droves soon IMO, as OCAT's cash dwindles ever lower and lower and their key trial goes nowhere. $12 million left- for a company that's burning $28 million a yr given the 10-Q rate they just filed (while not running or funding DIME ONE yet of their key Phase II trial)?
It's SHOW ME THE MONEY time IMO- that's what the market place is saying. NO MONEY, no trial(s). It's just that simple. Talk till the cows come home- if there's no cash, it's all for not.
I think it's gonna take a tad more than "talks" and "conferences" to move the needle on this one. Talk is cheap- so they say. Starting and running Phase II, large, FDA quality trials is mega EXPENSIVE. Funny how that reality "works", no?
Another "talk" another "conference" blah, blah, blah.
And how have those all worked out in the past? Any BIG MONEY financing ever materialize? Anything other than a large travel and expense bill to the company?
"talks and conferences" and the stock is parked BELOW WHERE IT TRADED ON THE OTC, lol !! It's sitting near a 52 week low and treading water at best.
Great, give "talks" to supposedly "important people" - talk till the cows come home.
Meanwhile, the Lincoln funds are dwindling down fast again, the Phase II is parked and not even started (let alone even remotely close to being funded) and they go and give "talks". Great. Wow. Big whoop. Fantastic.
From the latest, just filed 10-Q:
www.sec.gov/Archives/edgar/data/1140098/000101968715001797/ocata_10q-033115.htm
PAGE 7:
"The Company has no therapeutic products currently available for sale and does not expect to have any therapeutic products commercially available for sale for a period of years, if at all. These factors indicate that the Company’s ability to continue research and development activities is dependent upon the ability of management to obtain additional financing as required."
PAGE 7:
"The accompanying consolidated financial statements have been prepared in conformity with GAAP which contemplate continuation of the Company as a going concern. However, as of March 31, 2015, the Company has an accumulated deficit of $356.2 million, recurring losses from operations, and negative working capital which raise substantial doubt about the ability of the Company to continue as a going concern. The ability to continue as a going concern is dependent upon many factors, including the Company’s ability to raise additional capital in a timely manner. The Company has no expectation of generating any meaningful revenues from our product candidates for a substantial period of time and must rely on raising funds in capital transactions to finance our research and development programs. Our future cash requirements will depend on many factors, including the pace and scope of our research and development programs, the costs involved in filing, prosecuting and enforcing patents, and other costs associated with commercializing our potential products. Accordingly, management’s plans to continue as a going concern contemplate raising additional capital including the prior execution of an agreement for a $30 million equity line in late June 2014, of which approximately $12.5 million remains available as of March 31, 2015. There can be no assurances that management can raise the necessary additional capital on favorable terms or at all. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern."
PAGE 24:
"We cannot assure you that public or private financing or grants will be available on acceptable terms, if at all. Several factors will affect our ability to raise additional funding, including, but not limited to, the volatility of our common stock and the broader public equity market, especially public equities issued by other pre-commercial biotechnology companies, and our ability to raise capital through non-dilutive transactions such as out-licenses. If we are unable to raise additional funds, we will be forced to either scale back our business efforts or curtail our business activities entirely. As of March 31, 2015, the Company has an accumulated deficit of $356.2 million, recurring losses from operations, and negative working capital which raise substantial doubt about the ability of the Company to continue as a going concern.
"
Most recent filed 10-K, PAGE 16:
"
Other than our arrangement with Lincoln Park, we have no sources of debt or equity capital committed for funding. Recent attempts to raise capital in the public equity markets have proven unsuccessful, and we can provide no assurance that we will be successful in any future funding effort. The timing and degree of any future capital requirements will depend on many factors, including:
"
Same 10-K, PAGE 16:
"We will require substantial additional resources to fund our operations and to develop our product candidates. If we cannot find additional capital resources, we will have difficulty in operating as a going concern and growing our business."
Same 10-K, PAGE 16:
"Our independent auditor’s report for the fiscal year ended December 31, 2014 includes an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern.
Due to the uncertainty of our ability to meet our current operating and capital expenses, in their report on our audited annual financial statements as of and for the year ended December 31, 2014, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern. Recurring losses from operations raise substantial doubt about our ability to continue as a going concern. If we are unable to continue as a going concern, we might have to liquidate our assets and the values we receive for our assets in liquidation or dissolution could be significantly lower than the values reflected in our financial statements. In addition, the inclusion of an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern and our lack of cash resources may materially adversely affect our share price and our ability to raise new capital or to enter into critical contractual relations with third parties."
Same 10-K, PAGE 46:
"We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Ocata Therapeutics, Inc. and Subsidiary as of December 31, 2014, and the related consolidated statements of operations, stockholders' deficit, and cash flows for the year then ended and our report dated March 16, 2015 expressed an unqualified opinion thereon and included an emphasis of a matter paragraph relating to an uncertainty as to the Company’s ability to continue as a going concern.
/s/ BDO USA, LLP
Boston, Massachusetts
March 16, 2015"
GREAT, "talk" and "conference" away- drink, dine and TALK. Great.
LOL quote, "RPE Therapy Works! All Patients Improved or Stabilized
These FACTs, are times 10, more important,
than all of the EXAGGERATED problems. "
NO, RPE "therapy" is being TESTED to "try" and prove it works and is safe. And the problems of OCAT are not "exaggerated", just read their own SEC FILINGS. Those aren't "FACTS"????
WHERE'S THE MONEY? They're on life support funding using a credit-card life line from Lincoln and are once again tapped out to close to their last dollar with about $12 million left, while they burn at least $2 million a month on the low side (and that's WITHOUT running a single large trial, let alone paying for it or funding it)- they just booked a massive $7 million plus loss for their latest qtr.
From the highly respected science journal NATURE:
www.nature.com/news/stem-cells-pass-safety-test-in-vision-loss-trial-1.17451
Lanza doesn't say "IT WORKS"??? He says CAUTION and MORE TESTING NEEDED to "prove" anything? He didn't dispute or retract or question the NATURE article? Why? He DOES NOT EVER SAY "it works" - he says MORE TESTING NEEDED, lots more testing and lots more MONEY.
The VERBATIM article, again, from the highly respected science journal, "NATURE"-
"A company that has spent more than 20 years trying to develop treatments based on embryonic stem cells is taking encouragement from small, preliminary tests of the cells in people with progressive vision loss. If the technique continues to impress in larger trials designed to assess its effectiveness, it could become the first therapy derived from embryonic stem cells to reach the market.
A study of four patients, published in Stem Cell Reports on 30 April1, shows that injection of retinal cells derived from stem cells is safe for people with macular degeneration. The report follows similar results from a trial in 18 patients that was published last October2.
Both studies were meant to assess safety only, and neither included a control group. In the latest study, conducted by researchers in Korea and the United States, three participants were able to read 9–19 more letters further on an eye chart a year after treatment — but two of the three also gained some ground in their untreated eyes."
MORE...
"“This bodes well,” says Robert Lanza, chief scientific officer at Ocata Therapeutics in Marlborough, Massachusetts, and an author of the study. “But I think we need to interpret this improvement cautiously until more controlled studies are done.”
The sample size is too small to warrant much excitement, cautions ophthalmologist Tien Yin Wong of the Singapore National Eye Centre. “At this stage it’s hard to say if the visual improvement will be sustained,” he says. “But it’s very promising.”
Lanza speaking to a local MA newspaper-
http://www.telegram.com/article/20141014/NEWS/310149525&Template=printart
"We treated the last UK patients last month, and they also have not seen any safety issues related to the transplanted tissues themselves, either," Dr. Lanza said.
Advanced Cell now hopes to launch a 100-patient, phase 2 study in Stargardt's patients by the end of the year, according to Dr. Lanza.
A second, smaller phase 2 study in patients with age-related macular degeneration would follow, he said. Any treatment might not be ready for FDA approval until 2020, Dr. Lanza said."
THOSE are the "FACTS" as Lanza has stated um "on the record"- not the other myths that this is a DONE DEAL and SLAM DUNK and already "proven" to work, blah, blah, blah.
That was dated Oct 14, 2014 and the END OF YEAR phase II DID NOT HAPPEN.
Where's the BIG MONEY? Why don't they ever attract any large capital investments- especially any "high quality" money (non dilutive) or at least not cash-for-dilution-shares deals with discounts and all the rest attached to them? Why? Why is that? Why? They live on low grade dilution money and have NO WHERE NEAR the funds to get a large Phase II even started- let alone funded to completion? Why? Why is that?
It took like FIVE YEARS to get a micro sized phase I done. They've yet to even start the large and magnitudes more difficult and magnitudes more expensive Phase II trials (with control arms and placebo blinding)- why? If the phase I took about FIVE YEARS, then how long will these phase II trials take- the one(s) that were supposedly going to be fully funded and rocking and rolling by END OF 2014 and it's now almost half way through 2015 and the trial(s) are in the parking space, going nowhere and the latest Lincoln cash is dwindling down at an alarming rate. Why? Why is that?
Massively stacked to the Ask/Sell side.
Looks like they got one or two orders, probably amateur buyers to fill on a couple of opening trades, actually above the Ask, at .006 Nothing like paying above the Ask to get a fill on a small order, LOL??
Then the "usual suspect" MM's just stepped in with the crusher driving the Bid right back down to only .0053 and loading the Ask/Sell at .0059 and 144 to 1 to the Bid, holy cow.
1.59 MILLION SHARES on the sell side this AM w/ only 11K on the Bid at .0053 and .0051 below that? Wow.
0.0053 / 0.0059 (11000 x 1593063)
MASSIVE DILUTION this qtr got market cap barely back above $4 million-
From just filed 10-Q, PAGE 1:
"As of May 05, 2015, there were 734,759,150 outstanding shares of the Registrant’s common stock, par value $0.001 per share. "
So at the current price of about .0055 (with a recent all, all, all time new low of .0045)- that renders a market cap now of-
.0055 X 734,759,150 = $4,041,175.00 MARKET CAP, barely holding $4 mil
So I guess that's probably kind of a "positive"? Sort of? $4 million market cap against $11 million in current debts/obligations and accounts payable of about $2 MILLION alone, holy cow. I mean, I guess the common share massive dilution being added in and sort of "propping up" the market cap each time it sinks as the common share price sinks more and more- "maybe" that could be seen as sort of a recent "positive, no?? Maybe?
BHRT is looking a little rough in here- as essentially a 1/2 CENT STOCK for all intents and purposes now it appears IMO.
Interesting recent blog, by a highly respected writer who follows the "stem cell" field only- raised some interesting questions about BHRT and its long term viability IMO (in addition to the company's own 10-Q numerous "GOING CONCERN" warnings of course- see any of the recent filed 10-Q or the 10-K "GOING CONCERN" warnings, they're numerous in each filing)
http://www.ipscell.com/2015/05/bioheart-on-the-edge/
It's almost mid 2015 and the common shares are barely above their all, all, all time new lows of .0045 CENTS, aka 4/10ths of ONE CENT. Not sure how all this big "new plan" stuff announced in "PR" and all for 2015 is panning out- it just doesn't seem to be resonating with the market maybe? Or is the recent 87 MILLION more shares of dilution in the recent 10-Q and the qty-5, FIVE more toxic, floorless, convertible debt deals done already in just Jan/Feb and then April of 2015? Not sure what exactly is going on? Will have to wait and see I guess- just not sure what's going on exactly?
LOL quote, "Why would Fukashima patients benefit with Ocata platelets in blood transfusions?
What? Another OCAT imaginary "product" that DOES NOT EXIST?
How would any "Fukashima" so called "patients" supposedly "benefit" from anything related to OCAT when OCAT HAS NO PRODUCTS, NONE??? HOW exactly does or would that fantasy "work" exactly??
Just filed OCAT 10-Q, PAGE 13:
"Our ability to become profitable depends upon our ability to generate revenue. We do not anticipate generating revenues from product sales for the foreseeable future, if ever. "
More imaginary "product" tall tales, LOL. Yeah, "Fukashima", right???
LOL BS quote, "RPE Therapy Works! This FACT Trumps Everything Else"
NOTHING'S been proven to "work" yet? A tiny, micro sized, self run phase I proves NOTHING. ZIP. ZERO. NAUGHTA.
It's a blip, a sample so small as to "prove" nothing yet- especially for long term use in human subjects.
http://www.nature.com/news/stem-cells-pass-safety-test-in-vision-loss-trial-1.17451
Lanza says "CAUTION" in highly respected journal "NATURE". Peer review commentary in same article says sample size TOO SMALL to yet be meaningful- doesn't sound like any "slam-dunk" ole "done deal" yet to me?????? Lanza does NOT say anything's been "PROVEN"??? He says MORE TESTING NEEDED to "know" anything for sure?
The VERBATIM article, again, from the highly respected science journal, "NATURE"-
"A company that has spent more than 20 years trying to develop treatments based on embryonic stem cells is taking encouragement from small, preliminary tests of the cells in people with progressive vision loss. If the technique continues to impress in larger trials designed to assess its effectiveness, it could become the first therapy derived from embryonic stem cells to reach the market.
A study of four patients, published in Stem Cell Reports on 30 April1, shows that injection of retinal cells derived from stem cells is safe for people with macular degeneration. The report follows similar results from a trial in 18 patients that was published last October2.
Both studies were meant to assess safety only, and neither included a control group. In the latest study, conducted by researchers in Korea and the United States, three participants were able to read 9–19 more letters further on an eye chart a year after treatment — but two of the three also gained some ground in their untreated eyes."
MORE...
"“This bodes well,” says Robert Lanza, chief scientific officer at Ocata Therapeutics in Marlborough, Massachusetts, and an author of the study. “But I think we need to interpret this improvement cautiously until more controlled studies are done.”
The sample size is too small to warrant much excitement, cautions ophthalmologist Tien Yin Wong of the Singapore National Eye Centre. “At this stage it’s hard to say if the visual improvement will be sustained,” he says. “But it’s very promising.”
Lanza speaking to a local MA newspaper-
http://www.telegram.com/article/20141014/NEWS/310149525&Template=printart
"We treated the last UK patients last month, and they also have not seen any safety issues related to the transplanted tissues themselves, either," Dr. Lanza said.
Advanced Cell now hopes to launch a 100-patient, phase 2 study in Stargardt's patients by the end of the year, according to Dr. Lanza.
A second, smaller phase 2 study in patients with age-related macular degeneration would follow, he said. Any treatment might not be ready for FDA approval until 2020, Dr. Lanza said."
That was dated Oct 14, 2014 and the END OF YEAR phase II DID NOT HAPPEN.
In his latest "talk", Lanza now said they "We're hoping in the coming months to certainly initiate our Phase II clinical trial." Oh, so now it's "hoping" and "in the coming MONTHS"??? How many MONTHS plural? 2, 4, 6, 8 months? End of 2015? Who knows what that vague a statement even means IMO? It's MAY 2015 now, but it was supposedly going to "start end of year" in 2014? Now it's we "hope in the coming months"??
NOTHING HAS BEEN "PROVEN" to "work"???? Where and when? Where did that happen?
Some vague "report" of ONE PATIENT- supposedly "seeing" or whatever, that is known in actual, real "science" as an ANECDOTE. It "proves" NOTHING.
LOL quote, "Élysse, they have more than enough money for the near future between Lincoln and cash on hand. "
What?? They have "maybe" SIX MONTHS of cash left tops (closer to 5 months really IMO)- they just burned $7 million in the past qtr and that's w/o funding ONE CENT of a large phase II , FDA quality trial which is supposedly their entire reason to exist. Instead- they continued to hire more top bloat and stack the Sr. Mgt ranks with positions that suck up cash and perks- without even making sense as to what those positions would do on a day to day basis, given the company's current business position and lack of any products, no sales, no marketing, no real manufacturing, etc
SIX MONTHS worth of cash in the business world is known as being on LIFE SUPPORT- it's not "plenty of money" in any way, shape or form when they generate NO internal cash or cash flows. Company's can't be borrowed out to the last month or two- that's known as insolvency risk, aka heading for a good solid chance at BK (bills due and payable before timely cash arrives to pay them).
From the just recent filed 10-Q:
www.sec.gov/Archives/edgar/data/1140098/000101968715001797/ocata_10q-033115.htm
PAGE 7:
"The Company has no therapeutic products currently available for sale and does not expect to have any therapeutic products commercially available for sale for a period of years, if at all. These factors indicate that the Company’s ability to continue research and development activities is dependent upon the ability of management to obtain additional financing as required."
PAGE 7:
"The accompanying consolidated financial statements have been prepared in conformity with GAAP which contemplate continuation of the Company as a going concern. However, as of March 31, 2015, the Company has an accumulated deficit of $356.2 million, recurring losses from operations, and negative working capital which raise substantial doubt about the ability of the Company to continue as a going concern. The ability to continue as a going concern is dependent upon many factors, including the Company’s ability to raise additional capital in a timely manner. The Company has no expectation of generating any meaningful revenues from our product candidates for a substantial period of time and must rely on raising funds in capital transactions to finance our research and development programs. Our future cash requirements will depend on many factors, including the pace and scope of our research and development programs, the costs involved in filing, prosecuting and enforcing patents, and other costs associated with commercializing our potential products. Accordingly, management’s plans to continue as a going concern contemplate raising additional capital including the prior execution of an agreement for a $30 million equity line in late June 2014, of which approximately $12.5 million remains available as of March 31, 2015. There can be no assurances that management can raise the necessary additional capital on favorable terms or at all. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern."
PAGE 24:
"We cannot assure you that public or private financing or grants will be available on acceptable terms, if at all. Several factors will affect our ability to raise additional funding, including, but not limited to, the volatility of our common stock and the broader public equity market, especially public equities issued by other pre-commercial biotechnology companies, and our ability to raise capital through non-dilutive transactions such as out-licenses. If we are unable to raise additional funds, we will be forced to either scale back our business efforts or curtail our business activities entirely. As of March 31, 2015, the Company has an accumulated deficit of $356.2 million, recurring losses from operations, and negative working capital which raise substantial doubt about the ability of the Company to continue as a going concern.
"
Most recent filed 10-K, PAGE 16:
"
Other than our arrangement with Lincoln Park, we have no sources of debt or equity capital committed for funding. Recent attempts to raise capital in the public equity markets have proven unsuccessful, and we can provide no assurance that we will be successful in any future funding effort. The timing and degree of any future capital requirements will depend on many factors, including:
"
Same 10-K, PAGE 16:
"We will require substantial additional resources to fund our operations and to develop our product candidates. If we cannot find additional capital resources, we will have difficulty in operating as a going concern and growing our business."
Same 10-K, PAGE 16:
"Our independent auditor’s report for the fiscal year ended December 31, 2014 includes an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern.
Due to the uncertainty of our ability to meet our current operating and capital expenses, in their report on our audited annual financial statements as of and for the year ended December 31, 2014, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern. Recurring losses from operations raise substantial doubt about our ability to continue as a going concern. If we are unable to continue as a going concern, we might have to liquidate our assets and the values we receive for our assets in liquidation or dissolution could be significantly lower than the values reflected in our financial statements. In addition, the inclusion of an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern and our lack of cash resources may materially adversely affect our share price and our ability to raise new capital or to enter into critical contractual relations with third parties."
Same 10-K, PAGE 46:
"We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Ocata Therapeutics, Inc. and Subsidiary as of December 31, 2014, and the related consolidated statements of operations, stockholders' deficit, and cash flows for the year then ended and our report dated March 16, 2015 expressed an unqualified opinion thereon and included an emphasis of a matter paragraph relating to an uncertainty as to the Company’s ability to continue as a going concern.
/s/ BDO USA, LLP
Boston, Massachusetts
March 16, 2015"
They don't have "plenty of money"?? "Plenty" for DOING WHAT- paying salaries and perks and bonuses and just existing at the status quo? They're limping along for all intents and purposes- existing to pay large salaries and bonuses and pass special perks n pay plans to a select few at the top IMO, while they're not even funding DIME ONE yet of the key trial(s) that were supposed to have started END OF 2014, almost SIX MONTHS AGO NOW.
A micro tiny phase I took um about FIVE YEARS to complete. IF they can even complete a large phase II (w/o failing it because of placebo or complications or any of the other 1000 ways a large phase II can bomb and fail)- how many YEARS and YEARS and $100's of millions more are they looking at? And that's not even to the LARGER, MOST EXPENSIVE PORTION, the phase III trials. This company is years and years away from even a remote shot at some FDA or Euro or similar approval, let alone a commercialized salable approved product- and they're $100 of millions short in cash to even remotely paying for those realities. "plenty of money"??? LOL !!
Flat-lining for several days now, volume is way off- but it's going nowhere?
It's been in flat lining mode- as in several hours yesterday w/o a single trade posting and then the MM's "painted the tape" 40 seconds before the close to close it flat. It looks like a few MM's want it right about 1/2 CENT for a bit right now.
BMAK has it "bracket" on both the Bid and Ask today- and they did yesterday also for a good part of the day.
0.0054 / 0.0056 (21000 x 153000)
Still stacked 7 to 1 to the Ask/sell side but no buyers really stepping in despite the "big news" and the PR stuff about the "great quarter" and blah, blah stuff. PR just doesn't seem to "move the needle" on it anymore IMO.
When it gets to this low volume, slow mode, flat-lining pattern, it's often setting up for the next big leg down from my experience watching it.
If one of these dilution, convertible debt holders does another big round of conversion in here- who knows how low they might take it? Being that it's presently barely sitting off the all, all, all time new low now of .0045, I'd venture a guess the next leg down might take it even to the .003's possibly. Just speculation- but it wouldn't surprise me one bit.
Lower lows and lower highs and treading water right now as a 1/2 CENT stock, like 1/2 CENT is pretty much the "new normal" range it appears perhaps.
Looking real weak in here IMO. Not looking too good.
Interesting blog about the 2015 prospects for Bioheart- raises some fascinating questions IMO:
http://www.ipscell.com/2015/05/bioheart-on-the-edge/
LOL BS quote: "Another message/board OCAT post is getting attention.
OCATA Therapeutics PPS projections based on TOTAL ADDRESSABLE MARKET(TAM) for Pivotal SMD and Phase 2 AMD and upcoming milestones 2015/2016 (LOL what imaginary "market" when they HAVE NO PRODUCTS TO EVEN SELL YET???)
2nd quarter 2015: $35.00 plus (NOT A CHANCE, NO. Sitting at a SOLID $6 and small change in MID MAY 2015)
Based on upcoming OCAT Milestones in Q2: (it's MID MAY, and NO)
1. SMD granted SPA by USFDA. (NO, MID MAY not happening yet)
2. First SMD patient treated in Pivotal Trial. (NOT happened yet)
3. First AMD patient treated in phase 2 Trial. (NO, NOT YET)
4. Asian patients Data published. (Yep, and market panned it)
5. Phase 1 complete data set released of all 38 patient AMD trial. (Market panned)
6. JV Non core assets. (NOPE, and not even a mention in CC or 10-Q)
7. Data published for Tuft's dog trials based on OCAT cell therapies for Lupus, Chron's etc. (NOPE, not a happening so far, "articles" being published have been a goose egg for this company anyway. WHERE'S THE MONEY??)
8. IND filed with FDA for RPC's to cure blindness even in patients with dead rods and cones. (NOPE, nothing on that one either)
9. Multiple additional sites for both here and EU for both SMD and AMD trials. (It can be 1000 "sites" but with NO MONEY TO FUND IT, what difference does it make anyway??)
3rd quarter 2015: $70.00 plus (LOL, LOL oh wow !!)
1. EU Pivotal Trial SMD Therapy partnership with major EU Big PHARMA. (NOT A CHANCE IMO. Too funny)
2. US partnership for AMD therapy. (NOT A CHANCE IMO, too funny)
3. MS mice data published in peer review Journal. (MICE? Means 15 yrs minimum and $100's of millions to even a remote chance at a product - what difference would it make? They can't even fund or raise serious cash for what they have now???)
4th quarter 2015: $ 100.00+ (BEYOND LAUGHABLE !!! Never gonna happen IMO. Not in 2015, not ever)
1. EU halts orphan SMD pivotal trial and grants OCAT marketing authorization for all of EU based on overwhelming safety and efficacy. (NOPE, just more myths and conjecture DREAMING)
2. US FDA halts orphan SPA SMD therapy and grants approval based on overwhelming safety and efficacy. (LOL, NO. The FDA doesn't do that)
3. FDA grants breakthrough designation for OCAT AMD therapy. (LOL, I wouldn't even give that Vegas craps table odds)
4. Dr. Lanza and Dr. Langer receive Nobel. (Good luck)
Considering the little "micro blog" source of all those vast "predictions" and its track record for being dead wrong in the vast "prediction department" (for YEARS)- not a chance at even remotely coming true as stated IMO. Not even close. Past Vegas or lotto odds IMO.
LOL quote, "So what,
I believe in the Lancet Report
and
our Cells are the "Gold Standard"
Period!"
Well, those ole supposed "Gold Standard" ole cells can't seem to bring in any real "gold"??? Why is that?
The key to the entire 10-Q and that ever so short "conference call" is WHERE'S THE BIG MONEY FINANCING that just never seems to materialize?
They ain't gonna be able to run a large, high quality, FDA quality ole phase II on Lincoln dilution money? And their 1st attempt at going to the public in a secondary FAILED when the market was in raging bull territory- especially for bio-techs. The overall market has cooled considerably - maybe even heading for sell-of mode. If they couldn't get a deal done then, it's just gonna be that much tougher now- money is drying up all over the place. The stock and bond markets are seeing outflows - there's major uncertainty hitting all over the globe, especially the Euro markets.
They may have missed the funding window and royally screwed the pooch- but it appears they couldn't sell the deal as there was just no demand for the $62 mil worth of shares, let alone the entire $100 mil shelf offering. And so they sit- trials parked, cash burning away, living off the Lincoln dilution credit-card line.
The real dilution - the big stuff, hasn't even hit or been priced in yet. If they go back and have to take a deal in a now weaker market and with their share price languishing where it is now, who knows what a large chunk of dilution funding is going to price at? It aint' gonna be at market IMO. Which means major downside risk from here until those supposed "Gold Standard" cells show some actual value to some big money folks or the market. Being down to your last, lousy $12 mil or so- ain't showing any "gold" anything.
LOL quote, "We're Gonna Cure Blindness, And Give You A_Lolly_Pop "
All_except the pesky_little part that no_one, especially lil ole OCAT has come_even remotely close to supposedly curing_blindness??? So I_guess no lolly_pops for anyone?
Just filed 10-Q statement, PAGE 7:
"The Company has no therapeutic products currently available for sale and does not expect to have any therapeutic products commercially available for sale for a period of years, if at all. These factors indicate that the Company’s ability to continue research and development activities is dependent upon the ability of management to obtain additional financing as required."
"The accompanying consolidated financial statements have been prepared in conformity with GAAP which contemplate continuation of the Company as a going concern. However, as of March 31, 2015, the Company has an accumulated deficit of $356.2 million, recurring losses from operations, and negative working capital which raise substantial doubt about the ability of the Company to continue as a going concern. The ability to continue as a going concern is dependent upon many factors, including the Company’s ability to raise additional capital in a timely manner. The Company has no expectation of generating any meaningful revenues from our product candidates for a substantial period of time and must rely on raising funds in capital transactions to finance our research and development programs. Our future cash requirements will depend on many factors, including the pace and scope of our research and development programs, the costs involved in filing, prosecuting and enforcing patents, and other costs associated with commercializing our potential products. Accordingly, management’s plans to continue as a going concern contemplate raising additional capital including the prior execution of an agreement for a $30 million equity line in late June 2014, of which approximately $12.5 million remains available as of March 31, 2015. There can be no assurances that management can raise the necessary additional capital on favorable terms or at all. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern."
YEARS and YEARS away, IF EVER. What "cure_for blindness" supposedly? Where? Another myth.
LOL quote, "My God so what ..
its a blah, blah SEC-filing .."
Yeah, well- that SEC FILING is the "gold standard" that tells the true story and true financial condition of a CASH LOW micro cap that's for all intents and purposes GOING NOWHERE.
They pay big salaries, they DILUTE, and they BURN CASH and not much else. That's the little "story" in that ole pesky SEC FILING. Not the msg board fantasy and myth version of the company- but the real SEC FILED one.
All the key goals they were supposed to hit are just treading water as usual (how's that big phase II by end of 2014 coming along, LOL? Meanwhile $7 million went in the cash burner machine) but the dilution generated cash money and dilution shares are going up in smoke as usual- and the big boys are paid like fat-cats no matter what. Missed metrics or not, they get paid first from the incoming dilution money and then the self issued bonus shares and all the rest.
The big ole "Nasdaq" share price has gone flat to down to nowhere- it's below where this traded as an OTC penny stinker only months ago. Remember the myth that being on the "Nasdaq" would supposedly instantly changed everything and make this "go big" blah, blah, blah?
SEC FILINGS FOR ME- no msg board fantasy tall tales (JV myth, partner myth, platelet myth and all the other blah, blah, blah) just don't cut it for me personally.
10-Q out first glance read: CASH LOW and a few other items of note.
http://ir.ocata.com/sec-filings/content/0001019687-15-001797/ocata_10q-033115.htm
PAGE 1: 35,667,442 shares O/S as of April 30, 2015
From the balance sheet, PAGE 3:
Cash is 3,532,602
Immediate accounts payable is 1,191,185
So at best, their current cash position is about $3,532,602 - $1,191,185 = $2,341,417 ( a little over $2 mil left, which they burn every month approx)
Thus they will be tapping Lincoln ASAP for more dilution funding IMO.
PAGE 4, statement of operations:
Their R&D + general/Admin expenses for the qtr: 7,065,433
So they are burning about 7,065,433 / 3 = $2.3 MILLION PER MONTH
Their qtr loss was $7,035,071 which means they're tracking to LOSE about $28 MILLION this yr which is up considerably.(considering the legal expense nonsense was paid off and not in this qtr expenses) They're burning money like it's going out of style.
(wow, and that's with no major trials being funded yet)
PAGE 19:
"We have no therapeutic products currently available for sale and do not expect to have any therapeutic products commercially available for sale for a period of years, if at all. These factors indicate that our ability to continue research and development activities is dependent upon the ability of management to obtain additional financing as required."
PAGE 20 (they spent more on R&D but NO TRIALS BEING FUNDED. Just says they're "preparing" for trials)
"R&D expenditures, excluding non-cash stock compensation expense, increased from $2,422,659 for the three months ended March 31, 2014 to $2,822,853 for the same period in 2015, for an increase of $400,194 or 16.5%. The increase in R&D expenditures was primarily due to an increase in employee costs of approximately $202,000, an increase in expenses related to travel and conferences of approximately $163,000, an increase in costs related to our scientific advisory board of approximately $83,000, and an increase in consulting expenses of approximately $38,000. These increases were partially offset by decreases in pre-clinical program expenditures of approximately $79,000 and lab supplies of approximately $40,000. These shifts in expenditures were driven primarily by our shift in focus from pre-clinical programs to our planned expansion of our clinical capabilities as we continue to prepare for the commencement of our Phase 2 clinical trial in AMD and Pivotal clinical trial in SMD."
NOTHING NEW that I can see? Just BURNING CASH TO PAY THEIR OVERHEAD SALARIES and biz as usual- NO key "trials" underway, NO myth of a JV or whatever, nothing else mentions. JUST DILUTION and business "as usual" IMO. Not a "new" thing in the entire 10-Q on my 5 minute, first-pass quick read version
Will double check it again later- but I see NOTHING "new" or of major "news" in it- dilution and spend. That's about it.
Knoepfler, highly respected stem cell writer- DOUBTS about Bioheart:
http://www.ipscell.com/2015/05/bioheart-on-the-edge/
Very interesting piece of writing IMO. Raises one of the very questions I had myself, which is how can this "U.S. Stem Cell Clinic" thingy even be legal on U.S. soil, given the FDA's general stance on stem cells being drugs (and things like the famous 60 minutes investigative journalism piece on stem cell "clinics" etc?) I never understood from the get-go how this "clinic" could operate without FDA scrutiny- and so far BHRT is citing some "FDA law interpretation" of their own it seems and Knoepfler who knows a whole lot more about any of this than me- appears to say just that in his write-up. Fascinating piece of writing IMO.
Entire Knoepfler article, quoted verbatim:
"Bioheart on the edge in 2015?
Stem cell biotech company Bioheart ($BHRT) has had a rough 2015 so far.
Could this year be a decisive, negative tipping point for the company?
It has a number of clinical trials going, but from my view things seem increasingly uncertain.
An oddity amongst stem cell biotechs, Bioheart and its leadership have at times seemed to toy with what some might view as controversial projects. Kristin Comella, CSO of Bioheart, has played a major role in other ventures including in the past with the Ageless Institute, a stem cell clinic. Earlier this year, investors reportedly including Brenda Leonhardt (ex-wife of Bioheart founder, Howard Leonhardt) filed a lawsuit against Bioheart for millions in alleged unpaid debt.
Comella and Bioheart are also involved in what I view as concerning training of physicians in the use of a fat-based stem cell product that might be an unapproved biological drug from the FDA’s perspective. Comella provided some insights on Bioheart and the doctor stem cell training in a recent interview I did with her. She didn’t seem concerned with the FDA.
Bioheart has another puzzling venture, US Stem Cell Clinic, LLC, (“SCC”), which it describes in this way:
“a partially owned investment of Bioheart, Inc., is a physician run regenerative medicine / cell therapy clinic providing cellular treatments for patients afflicted with neurological, autoimmune, orthopedic and degenerative diseases. SCC is operating in compliance with the FDA 1271s which allow for same day medical procedures to be considered the practice of medicine. We isolate stem cells from bone marrow and adipose tissue and also utilize platelet rich plasma.”
Recent FDA draft guidances at the very least call into some doubt the compliance of some of the offerings of US Stem Cell Clinic, LLC. The FDA could back down on the requirement for the fat-based stem cell product SVF to be approved in advance as a biological drug, but then again it might not.
Investors seemed worried. Bioheart stock has taken a beating recently, down almost 60% in the last 3 months and almost 7% just today. Overall it seems that something has got to give soon.
Disclosure: I own no stock in Bioheart or its direct competitors. This piece is not financial advice."
End of Knoepfler article.
Again, fascinating to say the least IMO. I thinks his points are spot-on IMO.
http://www.fda.gov/AboutFDA/Transparency/Basics/ucm194655.htm
http://www.fda.gov/ForConsumers/ConsumerUpdates/ucm286155.htm
SOLID RED YESTERDAY, must be the "positive quarterly results" thingy? PR just doesn't seem to "move the needle" anymore on this one, seems to me. Maybe the recent issuing of 87 MILLION dilution shares in a period of less than 2 month could be having a "slight" effect on the common share performance? Just "maybe"? Kinda possibly?
Just filed 10-Q, PAGE 1:
http://www.sec.gov/Archives/edgar/data/1388319/000114544315000630/bioheart_10q.htm
"PAGE 1:
As of May 05, 2015, there were 734,759,150 outstanding shares of the Registrant’s common stock, par value $0.001 per share.
Last filed 10-K, PAGE 1:
"The number of shares outstanding of the registrant’s Common Stock, $0.001 par value, as of March 16th, 2015 was 647,653,526."
So that's 734,759,150 - 647,653,526 = 87,105,624 MILLION shares of pure dilution from March 16th to May 5th, i.e. less than 2 months. "
Below is just one possible example and explanation of perhaps why the common shares have now been driven to a recent new all, all, all time low of .0045 and now a range in the .005 to .006 CENTS area?
For just ONE example- and there's many IMO in this just issued BHRT 10-Q :
LOOK at just one key line from this most recent BHRT 10-Q, PAGE 24:
PAGE 24:
"Subsequent stock issuances:
22,053,009 shares of its common stock in settlement of $79,000 of outstanding convertible notes payable, and $2,739 accrued interest, "
Do the math on that one line of share dilution issued in settlement of "convertible notes payable" aka "toxic debt" (the SEC calls it "toxic" or "floorless" debt, also "ratchet" and "death spiral"- see the SEC site on "convertible securities, they devote an entire page to it):
Thus, from that line above, 22,053,009 shares were issued to pay $79,000 of principal + $2,739 of interest. That's = $81,739 dollars paid for via issuing over 22 MILLION SHARES of common dilution stock.
That means whatever firm got those dilution shares- they got um for:
$81,739 / 22,053,009 = .0037 CENTS per share. Yep. Less than 4/10ths of ONE CENT - someone, some debt lender hedge firm or similar recently got 22 MILLION plus shares at .0037 CENTS each.
So that firm- they could easily be dumping/selling in here at the .0055 price range and still be making a 50% return on their money. A freaking 50% ROI on $81K loaned out for a period of MONTHS. THAT is what "toxic" financing does and looks like.
They, whoever this lending firm is, could be selling/dumping down to the .0045 range (the new all, all, all time recent low) and still be making a 25% return on their money (their annualized return/interest rate on their money would be way higher than 25% as they don't lend this money for anywhere near 1 yr, it's probably been 6 months tops, so that's a 50% to 100% return on their money, when savings and CD's are paying like 1% at best. Wonder why these hedge dudes get into this biz of loaning money to cash desperate penny or SUB PENNY stock nano caps?).
http://www.bloomberg.com/news/articles/2015-03-12/josh-sason-made-millions-from-penny-stock-financing
AND, BHRT took on FIVE MORE of these toxic, floorless deals so far in 2015 already. FIVE. See page F-34 of the most recent SEC filed 10-K and then PAGE 24 of the just issued 10-Q:
PAGE 24:
"Subsequent financing
On April 13, 2015, the Company entered into a Securities Purchase Agreement with Vis Vires Group, Inc. (“Vis”), for the sale of an 8% convertible note in the principal amount of $33,000 (the “Note”).
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on January 16, 2016. The Note is convertible into common stock, at Vis’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owed multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.
On April 27, 2015, the Company entered into a Securities Purchase Agreement with Daniel James Management, Inc., for the sale of an 9.5% convertible note in the principal amount of $25,000 (the “Note”).
The Note bears interest at the rate of 9.5% per annum. All interest and principal must be repaid on April 26, 2016. The Note is convertible into common stock, at Asher’s option, at a 47% discount to the lowest daily closing trading price of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal at 150%, interest and any other amounts."
A company supposedly "getting stronger" takes on TWO MORE DEALS like those, w/ horrible financial terms, TWO more of um in just April of 2015 alone? Why? Why would this "company getting stronger" need $25K and $33K borrowed at some of the worst terms a cash desperate company can get, terms that will equal massive more share dilution- why would they do that if they're "getting stronger" and all these other claims being made? Why? $25K and $33K needing to be borrowed in cash-for-dilution-shares deals just a month ago? Why? Why would Sr Mgt be doing this continually - when the PR and one-liners are trying to paint a picture that things are supposedly "getting better" as are claims being made here? Why? Pittances of $25K borrowed at a time- at 45% and 47% share discounts that will result in massive on-going common share dilution effects? Why? Why do that? Doesn't the "revenue" thingy fix all this supposedly, LOL???
DILUTION, mass dilution and its effects- it's stunning IMO. It explains a lot to me of why the stock price is likely what it is recently and behaving as it is IMO. I believe there's now a near un-ending flow of cheap, low priced dilution shares continually hitting the Ask/sell side to be dumped by these lending firms.
My .0055 or so CENTS worth
LOL quote, "So we will finaly see a JV in the Platelet-Area for sure!"???
Based on what? A bunch of bad conjecture and pure myths scraped together on some micro blog site? Really?
WHERE is it proven that there is any "JV in the platelet-area for sure"??? Where?
Other than some vast imagination constructed myth -strung together via imaginary "links" envisioned to exist (when they don't exist) in some "article" and then "extrapolated" into some vast story on a micro blog site that some imaginary un-announced supposed "partnership" or "JV" exists when none does as of today?
Has the company, OCAT- have they said ONE WORD to confirm anything in this myth being circulated by this little micro blog site and it's story tellers? Where's the company's confirmation of all this conjecture?
Why would the company OCAT not be all over this if even one shred of what comes off that nothing, little, mirco blog site was even remotely true? Considering the source of the myth- and that site's track record at ever being correct, I know where I'll file this latest myth.
LOL quote, ""Only resulted in 241K to the bank".... Only?? Compare that to few years back. This company is growing stronger and stronger as their business plan unfolds perfectly. "
LOL, yes, only $241K in their bank- versus just their growing and increasing general/Admin expense line being $900K for the same period- over 3X their incoming cash, THREE TIMES what they banked. And that's only part of their overall expenses. They're running huge cash deficits to this day and "revenues" isn't changing that for all intents and purposes and the massive use of continual dilution and continual borrowing at horrible terms, that alone proves that point IMO.
LOL, "growing stronger"?? Based on what facts? WHERE in the 10-Q is that proven??
They took a LARGER LOSS year over year. LARGER, not smaller. They're LOSING MORE MONEY NOW than last year, and that's w/o funding any trials and with major cuts to R&D yr over yr etc. WHAT exactly is "getting stronger"? Where?
Their mass increase in the rate and use of share dilution doesn't indicate they are "getting stronger" IMO? How would that be possible? How?
Why would they ink qty-5, FIVE new toxic, floorless, convertible debt deals IN ADDITION to being tapping MAGNA now several time in a row- if they were supposedly "getting stronger"?? Why would those facts be true (see most recent filed 10-K and now just issued 10-Q)- why?
How does a company taking a LARGER yr over yr LOSS = "it's getting stronger"??? How exactly does that "work" in accounting form or in business form or in any generally accepted or know "form" related to business? How exactly?
I'm fascinated by this? "getting stronger"?? HOW? How exactly? Dilution is increasing, not decreasing. Use of toxic debt borrowing is constant, cash is desperation low against just current liabilities, no major events like funding any large trials is occurring, the O/S share count is climbing practically vertical on a chart, the share price just made all, all, all time recent lows and is trading very near those all, all, all time lows today- most likely because of mass, mass never ending common share dilution- over 87 MILLION shares worth as of this just filed SEC 10-Q and on and on and on???
What exactly is this "getting stronger" part- the exact details of how that "works" exactly? What part on the balance sheet? What part on the statement of operations? What part on any part of their SEC filed "financial statements" or any part of the just filed SEC 10-Q shows that they are "getting stronger" - the exact part and page number etc? Where?
I just personally don't see it? Must of missed the "getting stronger" part in all of it? Perhaps? Where is it?
LOL quote, "Straight from the BHRT bosses mouth... "
LOL !!
Well, here's the "non sound bite" ole "full" version the "boss" SIGNED AND FILED WITH THE SEC- the "full story" told in this version is a tad bit different IMO.
The ENTIRE 10-Q, quite a read, cover to cover IMO. A lot more in this "version" than a few selective one-liners. Start with the LARGER LOSS FROM OPERATIONS, the qty-5, FIVE more "toxic" convertible debt deals done in 2015, the $79K total cash left to their name, and the over 87 MILLION dilution shares issued just recently- maybe just those "highlights" for a starter.
http://www.sec.gov/Archives/edgar/data/1388319/000114544315000630/bioheart_10q.htm
Oh, and the "GOING CONCERN WARNING" is always good reading too- the one the "boss" writes and signs off on:
PAGE 11, the "boss" signed SEC filed 10-Q linked above:
"NOTE 2 — GOING CONCERN MATTERS
The accompanying unaudited 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 unaudited condensed financial statements, during three months ended March 31, 2015, the Company incurred an operating loss of $1,048,217 and used $384,251 in cash for operating activities. As of March 31, 2015, the Company had a working capital deficit (current liabilities in excess of current assets) of approximately $11.0 million. 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 existence is dependent upon management’s ability to develop profitable operations and to obtain additional funding sources. There can be no assurance that the Company’s financing efforts 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."
Guess that part didn't make it as a "bullet point" into any one-liner ole "PR" as usual, LOL ! Always somehow miss that one getting in those PR's. Same with the dilution share count or cash on hand or new convertible debt deals inked in the past few months or how no trials were started- you know, ole Myocell or Myocell SDF or whatever- now going on SIX YEARS old, etc Funny, those never make in those "cool" PR thingys? Why is that? Why I wonder? Why?
LOL quote, "Here's what matters TODAY. Stock value is about the FUTURE not the past."
TODAY??
LARGER LOSSES yr over yr. Things aren't "getting better" they got WORSE, WAY WORSE IMO. Look at the LOSS FROM OPERATIONS in this 10-Q.
$79K TOTAL CASH left to their name against current liabilities of over $11 MILLION and just immediate, like RIGHT NOW accounts payable of $2 MILLION plus
DILUTION, DILUTION oh, oh MASS DILUTION - like 87 MILLION shares worth in a period of a few freaking MONTHS. Shares being poured out like water, some of those shares at prices like .0035 CENTS ea approx.
Qty-5, FIVE toxic, convertible debt deals so far in 2015 and it's only MAY. See the 10-K and 10-Q "subsenquent financing pages" (Vis Vires, Daniel James Fourth Man, KBM Worlwide, etc) That's averaging ONE A MONTH. THAT is "today" and not the "past"- and it matters probably more than any other "force" affecting the common shares IMO, as is the mass common share dilution it results in- there will likely never be enough retail buyers to overcome the down pressure created and/or buying pressure needed to vacuum up so many 10's and 10's and 100's of MILLIONS of free trading shares that will go to the Ask/sell-side every last time these hedge lenders are used.
MAGNA being tapped continually- and they now holding/dumping 10's and 10's of MILLIONS of free trading shares- as BHRT DOES NOT MAKE EVEN REMOTELY enough cash to sustain itself- it's a share issue/dilution and borrow debt-for-shares machine for all intents and purposes IMO and their own SEC filings prove it each time. Shares issued to pay common bills, shares issued to pay interest, shares issued for continual rotating toxic debt, shares issued for promissory notes, shares issued to "guarantors" and on and on and on. READ any SEC filing including this most recent 10-K and now 10-Q, it's one continual "story" of common shares being issued.
The future? Well, the "future" is a continual flow of toxic lending hedge firms (Asher, KBM Worldwide, Danial James, Fourth Man, Vis Vires group etc) - who will IN THE FUTURE have a continual flow of CHEAP DILUTION SHARES (45% to 47% share discounts) being issued to them now all the way in to 2016, READ THE 10-Q FILING. THAT is the "future" - a constant, a certainty, immutable. Happening in real time now and in to the "future".
Sound bites versus the DETAILS OF THE 10-Q.....
Me, I stick to the entire 10-K or 10-Q and the "whole story" it tells.
Oh, and NO TRIALS started let alone being run or funded. NO "share buy back", LOL. No "positive cash flows", etc A big list of NO's IMO. Not happening.
Remember the "PR" thingy about how "dilution is not acceptable anymore" blah, blah, blah or whatever it was? Do the math on the 2015 DILUTION so far- it's a staggering number.
PAGE 1, MOST RECENT FILED 10-Q:
"As of May 05, 2015, there were 734,759,150 outstanding shares of the Registrant’s common stock, par value $0.001 per share. "
What was that share count only 1 yr ago???
Revenues don't even generate enough cash to PAY THE INTEREST ON THEIR DEBTS- that's the reality of their situation.
Revenues were $489,557 - $241,933 cost of sales = $241,933 cash to their bank account (before any taxes, etc) from "revenues".
So their revenues (top line) for the qtr, only resulted in net cash of $241,933 to their bank account for the entire quarter.
https://www.sec.gov/Archives/edgar/data/1388319/000114544315000630/bioheart_10q.htm
From PAGE 30:
"Interest Expense
Interest expense during the three months ended March 31, 2015 was $429,842 compared to $305,898 three months ended March 31, 2014. Interest expense primarily consists of interest incurred on the principal amount of the Northstar loan, our former Bank of America loan, the Seaside National Bank loan, accrued fees and interest payable to the Guarantors, the amortization of debt discounts and non-cash interest incurred relating to our issued convertible notes payable. The debt discounts amortization and non-cash interest incurred during the three months ended March 31, 2015 and 2014 was $320,373 and $258,361, respectively."
So interest on their debt cost them $492,842 for the 3 months of Q-1, 2015. Interest expenses alone are thus running $492,842 / 3 = $164,280 per month Some of that is stated as "non cash" on convertibles, etc- in other words paid in dilution shares on debt conversions, but still, these are interest expenses. At least $30K a month of it appears to be immediate, 100% pure, real cash needed to be paid- which is thus over 1/3 of the cash they bank from "revenues", probably more than that is paid in cash interest expenses. No matter- as their general/ADMIN costs blow all that out of the water- see below)
So their "revenues" resulted in $241,933 cash to their bank ($80,644 per month), but their interest alone on their debts was $492,842 for the same period or $164,280 per month, essentially DOUBLE what their revenues are generating.
And that's not salaries, bonuses owed, legal, overhead like turning the lights on and lease, etc. They DO NOT generate even enough cash just to pay the interest on their debt- let alone fund their basic overhead, let alone actually run and conduct any "business".
PAGE 30, SAME 10-Q:
"Marketing, General and Administrative
Our marketing, general and administrative costs were $998,133 for the period ended March 31, 2015 compared to $ 833,329 for the period ended March 31, 2014, an increase of $164,804. The increase in costs primarily due to increases in salaries from $112,500 for the three months ended March 31, 2014 to $177,376 for the current period, an increase of $64,876, and our legal and consulting fees increased by $51,895 and $45,880, respectively, due to additional services provided.
Our marketing, general and administrative expenses primarily consist of the costs associated with our general management and product and service marketing programs, including, but not limited to, salaries and related expenses for executive, administrative and marketing personnel, rent, insurance, legal and accounting fees, consulting fees, travel and entertainment expenses, conference costs and other clinical marketing and trade program expenses."
So their costs made up of mostly salaries and legal and "consulting fees" etc- those are over $300K PER MONTH, more than the entire cash generated by their top line "revenues".
Thus, no matter how one slices it they're not even remotely close to being cash flow positive or cash self sustaining- the "revenues" are not even close to enough as their general/ADMIN costs keep rising as shown in the paragraph above. They pay common bills still via issuing dilution shares, they defer things using "promissory notes" with interest, they delay paying etc But when the rubber meets the road- they don't come anywhere close to balancing out in terms of expenses versus cash coming in, not even close. Especially cash based only on revenues- they'd be lights out real quick if they had to live on self generated cash and stop the mass diluting and continual use of toxic debt financing deals (FIVE toxic debt financing deals already in 2015 since it's the 5th month, MAY, so that's one convertible debt deal per month avg so far, un-ending, on-going)
NO "trials" were conducted or "funded" in this quarter
NO "share buyback" took place, LOL (wow, what a surprise, eh?)
NO major debt was paid off during the qtr (their current obligations total - it actually increased slightly now to $11 million plus)
So they lost about a $MILLION in the qtr and nothing like a major trial was started, let alone conducted or funded etc. (remember the re-start Myocell or Myocell SDF trials or whatever it was? How's that working out so far?) Yet massive share dilution continued (87 MILLION plus shares) and more "toxic" floorless convertible debt deals were done; qty-2 more in just April, plus 3 more before that in Jan/Feb making FIVE, qty-5 "toxic" convertible debt deals done so far in 2015.
What was that, that "stuff" that was said about no more dilution or no more continual use of toxic debt being "acceptable", etc LOL? What was it? The 10-Q and the last 10-K show that's just not the case IMO. They're diluting more than ever before and using just as much toxic debt as ever before- I don't see or read a single thing in these SEC filings to show otherwise? Nothing?
10-Q, first glance- LARGER LOSS FROM OPERATIONS, only $79K total cash left on-hand and 10's and 10's of MILLIONS more common dilution shares issued and also more toxic, convertible debt deals done in just early April. Those are the first "highlights" - will read cover to cover later when I get the time.
Here's some key pages IMO at first 5 minute glance:
PAGE 1:
As of May 05, 2015, there were 734,759,150 outstanding shares of the Registrant’s common stock, par value $0.001 per share.
HOLY FREAKING COW. I was guessing "maybe" 700 MILLION shares- but WOW !! They blew through the 700 MILLION mark and it looks like are just keeping on trucking on that share dilution? Wow, that's a lot of dilution IMO !
Last filed 10-K, PAGE 1:
"The number of shares outstanding of the registrant’s Common Stock, $0.001 par value, as of March 16th, 2015 was 647,653,526."
So that's 734,759,150 - 647,653,526 = 87,105,624 MILLION shares of pure dilution from March 16th to May 5th, in less than 2 months. WOW !
PAGE 5 (condensed statement of operations)
Net loss from operations: (807,646)
NET (LOSS) INCOME: $(1,048,217)
That net loss from operations is up about $200K from the same period/qtr over qtr from 2014. Losses are getting larger, not smaller. And that's w/o any debt being paid down this quarter- the debt actually grew a bit if anything.
They LOST BASICALLY a FREAKING $MILLION for the qtr, despite the ole "revenue" thingy. WOW ! LARGER LOSSES than prior quarters. That would put um on track for an annual loss of around $4 MILLION at this rate.
Marketing, general and ADMIN costs continued to rise- getting bigger again.
Marketing, general and administrative: $998,133
(that's about a $150K increase over same period 2014, again, their rising costs are continually far outstripping any revenues after cost of sales is subtracted out it appears)
PAGE 11:
"NOTE 2 — GOING CONCERN MATTERS
The accompanying unaudited 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 unaudited condensed financial statements, during three months ended March 31, 2015, the Company incurred an operating loss of $1,048,217 and used $384,251 in cash for operating activities. As of March 31, 2015, the Company had a working capital deficit (current liabilities in excess of current assets) of approximately $11.0 million. These factors among others may indicate that the Company will be unable to continue as a going concern for a reasonable period of time."
PAGE 23/24"
On April 2, 2015, the Company issued 11,508,100 shares of common stock in settlement of $213,904 of accrued payables to Guarantor of the Company’s loan agreement with Bank of America and Seaside Bank. (See Note 5).
In April 2015, the Company sold 540,736 shares of its common stock for net proceeds of $5,000. In connection with the stock sale, the Company issued 540,736 warrants to purchase the Company’s common stock for five years at $0.009247 per share. In In addition, the Company issued 6,869,151 shares of its common stock in settlement for services, provided, 22,053,009 shares of its common stock in settlement of $79,000 of outstanding convertible notes payable, and $2,739 accrued interest, 1,363,031 shares of its common stock in settlement of $12,635.29 related party interest on Northstar debt (see Note 8), 14,917,086 shares of our common stock in exchange of $79,075 draw down on the Magna equity line and on April 9, 2015, the Company issued 413,289 shares of its common stock in settlement as “true up” shares pursuant to the draw down on the equity line."
So that's about 11.5 MILLION + 500K + 6.8 MILLION + 22 MILLION + 1.3 MILLION + 14.9 MILLION + 400K = approx 57,400,000 DILUTION shares issued in JUST APRIL of 2015 !!! 57 FREAKING MILLION SHARES OF DILUTION issued in a period of about ONE MONTH, holy freaking cow !! The dilution share issuing machine seems well oiled and to be chugging right along, LOL, wow !
PAGE 24 (more toxic debt deals for cash, in addition to tapping the Magna line in the paragraph above for $79K costing um 15 MILLION plus shares)
"Subsequent financing
On April 13, 2015, the Company entered into a Securities Purchase Agreement with Vis Vires Group, Inc. (“Vis”), for the sale of an 8% convertible note in the principal amount of $33,000 (the “Note”).
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on January 16, 2016. The Note is convertible into common stock, at Vis’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owed multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.
On April 27, 2015, the Company entered into a Securities Purchase Agreement with Daniel James Management, Inc., for the sale of an 9.5% convertible note in the principal amount of $25,000 (the “Note”).
The Note bears interest at the rate of 9.5% per annum. All interest and principal must be repaid on April 26, 2016. The Note is convertible into common stock, at Asher’s option, at a 47% discount to the lowest daily closing trading price of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal at 150%, interest and any other amounts."
PAGE 33:
"At March 31, 2015, we had cash and cash equivalents totaling $70,974. However our working capital deficit as of such date was approximately $11 million. Our independent registered public accounting firm has issued its report dated March 16, 2015 in connection with the audit of our financial statements as of December 31, 2014 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, 2015 addresses the issue of our ability to continue as a going concern."
(Note, the accounts payable alone exceed $2 MILLION again, against just $79K cash left on-hand. See "accounts payable" entry PAGE 4)
That's the quick glance version- the dilution continues to be staggering IMO, the losses are increasing if anything, not decreasing and they are near cash broke again w/ about $79K total against accounts payable of over $2 million and total obligations of now $11 million. So "revenues" don't appear to have made any difference. They tapped MAGNA costing um over 15 MILLION shares for $79K of cash AND still did qty-2 more toxic, floorless, convertible debt deals just recently (Daniel James again and Vis Vires again)- in April.
Nothing really changed here that I can see- they're in the same mode of dilution and continual use of toxic debt and very low cash.
My .0058 cents worth. Will read it in more detail later on.
LOL quote, "If it closes Up Today, that's Very Positive "
Well.....
So I guess all the rest is also "not positive" too then.
It's BLEEDING RED today and looking to close that way- nothing "positive" about it- and NO, nothing's been "proven safe" yet either. They barely have a micro sized phase I under their belt.
This thing is barely out of the starting gate- and the FDA phase II gauntlet and real trials haven't even begun yet. YEARS to know what they have or don't have at this point- all else, is pure speculation IMO. A royal crap shoot.
LOL quote, "Why is OCAT Dr. Robert Lanza influential?"
Or, WHY DOES LANZA SELL and DUMP so much of his company's own stock- seemingly always at some near-term, short-term peak or spike in price, LOL??
If this stock is supposedly "better than gold" and going to $240 or $1000 a share and all the other "predictions" (MYTHS) - then why is Lanza and all the other past insiders such prolific sellers and dumpers of their own shares, the shares they get issued for free?
Now THAT is real "influence" to me- tells me all I need to know IMO.
RED, Looks like Lincoln is just back on the Ask/sell-side IMO.
When a firm for all intents and purposes "lives off of" low grade, 100% pure dilution money, well, why's it a surprise when there is constant sell-side, downward pressure on the common shares?
OCAT "taps" Lincoln continuously (essentially non stop, un-ending)- or they'd be BK or insolvent fairly quickly as they burn a lot of cash and have no other source of incoming funds or cash. So it's "tap" and sell shares or die.
And that's w/o even funding a major, large, phase II trial yet- then the real serious dilution will begin IMO.
So no surprise here to me and no grand conspiracy theories needed- it's just likely Lincoln on the sell side and probably some NASDAQ short algos working it too. The myth that shorting would abate or vanish once the big "uplist" happened and all never made a wit of sense to me personally? The most brutal shorts and hedge firms LIVE and THRIVE on the NASDAQ. It's where HFT (high speed trading) and auto-bot trading and ECN (electronic networks) and all the rest were invented and live and thrive. It's all 100% legal and is an integral part of life on the Nasdaq and even the NYSE. Nothing new here? NASDAQ shorts live and pray daily for cash poor, no product, no sales, living off of Lincoln type firms IMO- they have computer algos to "sniff" these stocks out daily and pounce um at-will. The algos see this thing "pop" a bit- and then the pro traders step in and short for the easy money. Wash, rinse, repeat- until something major changes at this firm to give them some kind of financial strength or long term prospect that looks 100% solid.
Why would it be a surprise that this stock is now a golden short candidate to pro trading desks and hedge firms and similar on the NASD market? OCAT is cash low, they have no sales, and they will have no expected product or sales for years per their own SEC filings and public Sr. Mgt statements- what's the up-side catalyst here right now? IMO, this is the type of stock the pro short trader look for all the time. It's an easy target at this point IMO.
Nothing more complicated than that to me. Lincoln on the sell and probably coming up on pro short radars all over the place.
LOL quote, "Is this the end for BHRT?" Well, it ain't lookin real good here to say the least IMO.....
A 1/2 CENT share price now for all intents and purposes.
Yahoo finance and Google finance have the market cap at a paltry $3.82 million as of today. Yep, SUB $4 mil on the market cap and their current obligations in the latest 10-K "going concern warnings" is like $11 million or so now (just "accounts payable" I believe exceeded $2 MILLION in the last 10-K, more than half their current market cap now, WOW !).
BHRT finished 2014 with a grand total of $36K cash-on-hand despite inking qty-3 new "toxic", floorless convertible debt deals with firms like KBM Worldwide and some new firm Vis Vires and another Fourth Man deal, just taking on more and more toxic convertible debt. (see page F-34 most recent SEC filed 10-K)
They unloaded 65 MILLION plus more shares of pure dilution before the first 3 months of 2015 were even done (see same page F-34 of most recent 10-K)- and if one does the math, a lot of those shares were issued "on the cheap", at some sort of discount to the market price - issued to a toxic lender/hedge firm like Asher or Magna or similar.
The common shares have spent nearly all of 2015 (you know, the "big year" and the yr of the "revenues" thingy and the "new plan" and all that jazz) - the common shares have spent nearly the entire yr 2015 (it's MAY now) as SUB ONE CENT shares and just made a recent new all, all, all time low of .0045 CENTS (yep, SUB 1/2 CENT now is the new low).
So to quote the question, "Is this the end for BHRT?"
Well, IMO it sure ain't lookin real good in here at this point it seems? Pretty tough sledding looks like to me. If any of these toxic debt firms or now MAGNA (see the SEC filings regarding the details of the $3 million MAGNA "credit line" BHRT inked and has already tapped per the latest 10-K filing)- if any of them are converting shares in here at these prices- they'd be getting shares in the .005 range minimum to probably as low as about .0025 (yep, 1/4 of ONE CENT) range IMO (just do the math based on the share discount formulas in the toxic debt deal terms in the SEC filings, discounts of like 45% plus). So if there's now 10's of MILLIONS of .0025 or .003 cent shares hanging out there now (which is now very likely IMO)- then is can't bode well for this share price that's been spiraling down, nor the collapsing market cap IMO.
The lower this share price goes- the more and more dilution the company needs to raise even a pittance of cash each time (the SEC calls it a "death spiral" for example- see their website on convertible, floorless debt deals, the SEC) and the more extremely dilutive any existing toxic, convertible note deals get if those firms choose to "convert" their debt to shares in these price ranges. A single "draw" from Magna for say around $100K which BHRT already did once in early 2015, that "draw" amount would now = more than at least 20 MILLION shares to Magna at these current common share prices, 20 MILLION more shares of pure dilution to get just $100K of cash. When Magna puts those 20 MILLION shares on the sell/Ask side- what's it do to the common share price? Well, all of 2015 so far seems to pretty much "tell the tale" IMO. Not a good "tale" to say the least- given that the common shares are down like 70% or so from late 2014 and are now down something like 80% or more for the past 1 yr period.
My .0058 or so AM opening price cents worth.
.0063 "used to be" (as in past tense) the stock's all, all, all time low. It's now trading in that range for weeks at a time- like it's the "new normal" range it appears to me.
Only $56 bucks left on Bid at .0056 and it's .0051 below, WOW !
BMAK has it "bracketed" with 10K share blocks on both sides (Bid/Ask) this AM too- haven't seen that in a while?
0.0056 / 0.006 (10000 x 10000)
As of right now- it's that single 10K at .0056 on the Bid and then all .0051's or lower below it. Looking like the MMs may try and take it to the low .005's again today from the way the level II is stacked right now?
It really seems IMO like this is about a 1/2 CENT stock now- that appears to be the new base trading range. Remember when .0063 was the all, all, all time low? Wow. Now it made a 2015 new all, all time low of .0045 just recently and is now regularly trading in the .005's and .006's? The volumes are also much higher now too- in these new low price ranges if one pulls up a chart and looks at the volume bars along the bottom- it's doing very high volumes as it makes ever lower lows and lower highs, now doing "normal" trading days in the .005's and .006's sustained, for weeks. Almost all of 2015 it has traded as a SUB ONE CENT stock now- and it's May, almost half way through the year.
And that's after the "big revenue" and supposed "biggest year" ever and all the rest? How can it be making new all, all, all time lows when it's all going so great and about to "go big" in the next 6 months and all? (I thought the past "predictions" said that by 2015 it would already be huge and making enormous gains, you know, cause of the "revenue" thingy and all, but that obviously hasn't happened? Not sure why? 10's of millions or really 100's of millions of cheap dilution shares continually being sold maybe? Just maybe possibly?).
And "the two" of the now THREE total "employee" count (see latest 10-K filing) - they got enormous pay increases AND "cash bonus" awards for the past 2 yrs- like a tripling of their pay packages and then the common shares are making new all, all, all time lows? What sense does that make- and the company finished 2014 with a grand total of $36K TOTAL cash-on-hand in the company bank account according to the recently filed 10-K? How does that make any sense at all? I don't get it?
But hey- I guess that's just me? My .0058 CENTS worth.
Oh, just took out that 10K block at .0056 as I hit click. The Bid is getting even thinner. Looks like it could easily go to the .0051's if a single sell order for even say $500 bucks worth were to get posted. Wow, no Bid support at all still- even at these 1/2 CENT prices? Amazing IMO.
BHRT SEC filing of 2010 showing a DEBT OWED BRENDA LEONHARDT- just as described in the lawsuit IMO. Not sure what's not clear about it- and it's still "on the books" to this day as $1.5 million "subordinated debt, related party" (see balance sheet, latest filed 10-K, March 2015) which would be the original principal amount owed her and apparently never paid back to her- which is why she's suing the company per the text of the lawsuit as filed (the way I read it at least, IMO)
http://www.sec.gov/Archives/edgar/data/1388319/000114544310001874/d27097.htm
That's a 2010 SEC filing by BHRT. It's says in plain English that the Leonhardts were "owed by the company" $3 MILLION dollars for loans they made in regards to the B of A loan guarantee (that B of A loan later went into default apparently)- and then it clearly shows Howard and Brenda Leonhardt being divorced and SPLITTING the owed loan- which would be SHAZAM, $1.5 MILLION of principal owed each and then accruing interest for all the time period it's not paid back to them.
FROM THE SEC FILING ABOVE, PAGE 19: (FORM 10-Q, DATE JUNE 30, 2010)
" In March 2009, the Company’s Chief Science and Technology Officer and his former spouse repaid $3.0 million of principal and a pro rata portion of accrued interest on behalf of the Company. The Company then owed this $3.0 million to the Company’s Chief Science and Technology Officer and his former spouse. This liability was reflected on the Company’s consolidated balance sheet on a separate line titled “Subordinated related party loan.” This amount continued to accrue interest at an annual rate of the prime rate plus 5.0%.
In February 2010 the Company’s Chief Science and Technology Officer and his spouse filed for divorce papers. Pursuant to the divorce, their jointly owned shares and their ownership of the loan to Bioheart for which they hold as a result of their payment of $3 million of principal and related interest to Bank of America on behalf of Bioheart, would be divided equally between them. As a result, the Chief Science and Technology Officer’s common shares were then reduced to 2,513,840 and his percentage shareholding of the Company to 13.8%, with his former spouse assuming ownership of the same number of common shares and percentage shareholding of the Company. Their commonly owned loan and related interest, as of March 29, 2010, of $4,140,201, was been equally split. The Chief Science and Technology Officer on March 29, 2010, elected to convert his portion of the loan and related interest to restricted common stock and warrants. As a result, Howard Leonhardt, the Company’s Chief Science and Technology Officer, as of June 30, 2010, owns approximately 20% of the Company as of June 30, 2010."
Seems pretty clear to me? Again, not sure what's hard to understand about it? The company said it owed the Leonhardts $3 mil, Howard took his part in stock and warrants or whatever, Brenda Leonhardt upon divorce got 50% of the loan owed = $1.5 million and was apparently never paid by BHRT and BHRT still to this day shows a $1.5 million debt on their balance sheet as "subordinated debt, related party" and it's for exactly $1.5 million and has been carried forward on the books for years.
Seems pretty clear to me? Someone is owed that $1.5 million, else- why didn't BHRT discharge it off their books as paid or write it down as a bad debt and book it over to the other side of the ledger, etc? Why? It's there to this day? Why?
LOL quote, "Have been wondering the same thing but am quite certain the source will be connected to Collins. Seems too targeted not to be."
Funny how it's NEVER anything related to the company itself (BHRT) and the deals they willingly sign with a slew of toxic debt lenders: Asher, Daniel James, KBM Worldwide, MAGNA, Vis Vires, Fourth Man, etc (see ANY of their SEC 10-K or 10-Q filings going back years)???? NEVER a possibility of that or of those traders and their trading desks- always this "collins" thing???
Again, WHAT EXACT LAW, what EXACT SEC or similar statute is being broken when a trade for 666 shares (a buy or a sell order) is placed by some trading desk and routed electronically to fill? Is there an EXACT law that says trade amounts of 666 shares are some violation of law? I'm confused regarding all that?
Apple or Google or NO OTHER STOCK of the 1000's of stock traded daily on the U.S. markets NEVER, EVER have trades for share amounts of 666 shares? EVER? I'd find that hard to believe IMO.
Also, why is a judge going to toss a case supposedly - right off the bat w/o really hearing much about it, when the very debt described in the case filing is shown right "on the books" of BHRT, including the most recent filed 10-K, JUST AS DESCRIBED IN THE LEGAL CASE? Why is BHRT "carrying" that debt to this day on their books if it's supposedly not owed and a "judge" is somehow just going to "toss it out"? Why would a judge do that?
THERE IT IS- EXACTLY as the legal case as filed describes the debt owed Brenda Leonhardt: $1.5 million of "subordinated debt, related party". It's right there plain as day IMO.
Here's the legal filing for the suit- and that's exactly how the debt and it's base, principal original amount is described (plus interest now of course- making the suit amount much higher). Why would this get "tossed" by some judge lickity split- when the debt is shown even on BHRT's own most recent SEC filings? Why? Makes no sense to me? They appear to owe it- so why do they not pay it then? They're paying lots of other people back- including Northstar LLC insider as one example. So why not this other debt? What made it "subordinate" to other debts owed? That's what a judge is going to look at very carefully IMO, from what one can read at face value from the suit as filed. Doesn't look like some slam-dunk "toss it out" IMO?
http://www.businesswire.com/news/home/20150107006044/en/Investors-Sue-Bioheart-Millions-Unpaid-Debt#.VUbuQo6rSt8
http://lawsuitpressrelease.com/wp-content/uploads/2014/12/Leonhardt-v.-Bioheart.pdf
LOL quote, " But no one disputes the fact that they're a nano cap
stock that currently has an active business plan that is making $$$"
BHRT does not "make money" or "$$$" and never has. BHRT takes LOSSES. BHRT has always (and continues too) spend FAR MORE than they ever take in as "revenues" or any other form of incoming cash and they do not self generate enough cash to come remotely close to self funding their own operations as a sustainable business. Continual losses and thus need to continually find more cash/money to make up for their LOSSES. The company has never, ever, ever had so much as ONE CENT of positive cash flow or ever "made money".
In FACT (since this is about FACTS)- despite their big talk now of "revenues" - they actually took a LARGER LOSS FROM OPERATIONS in 2014 than in 2013 and that's despite HACKING OUT OVER $500K from their R&D spending. Add that $500K R&D cut back-in, and their financial picture would be even more of a train wreck and that much more desperate.
From the most recent filed BHRT 10-K:
Notice the INCREASED LOSS FROM OPERATIONS in 2014 versus 2013 and they still ended yr 2014 with a pittance of $36K TOTAL CASH left to their name. They MAKE NO MONEY. They incur LOSSES, nothing else- and they make up those losses and survive via what's for all intents and purposes a continual, on-going, non stop use of toxic convertible debt financing deals- and that's what their own most recent SEC 10-K filing says and their other recent 10-Q and prior 10-K filings say.
Same 10-K, covering period of yr 2014 and updates to March 2015, PAGE 55:
"Research and Development
Research and development expenses were $66,420 in 2014, a decrease of $560,563 from research and development expenses of $626,983 in 2013. The decrease was primarily attributable to a decrease in the amount of available funds."
Same 10-K, PAGE 56:
"At December 31, 2014, we had cash and cash equivalents totaling $36,674; our working capital deficit as of such date was $10,957,443. Our independent registered public accounting firm has issued its report dated March 16th, 2015 in connection with the audit of our financial statements as of December 31, 2014 that included an explanatory paragraph describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern."
Same 10-K, PAGE F-34, showing they DO NOT "make money" but need to continually issue DILUTION SHARES (65 MILLION shares worth in less than the first 3 months of 2015) and they still continually ink "toxic" convertible debt deals- including qty-3 NEW ONES in just Jan and Feb of 2015 in order to keep survival cash coming in- pittance of cash like $25K at a time to keep them a "going concern" and out of insolvency.
PAGE F-34, most recent 10-K:
"Subsequent stock issuances
In January 2015, the Company issued 4,783,568 shares of its common stock in settlement for services, provided 14,299,567 shares of its common stock in settlement of $49,500 of outstanding convertible notes payable, and $2,981 accrued interest and 2,096,450 shares of its common stock for net proceeds of $16,118 from equity drawdown under the Magna Purchase Agreement.
In February 2015, the Company sold an aggregate of 1,443,656 shares of its common stock for net proceeds of $16,270. In connection with the stock sale, the Company issued an aggregate of 1,443,656 warrants to purchase the Company’s common stock for five years at $0.01127 per share. In addition, the Company issued 20,219,367 shares of its common stock in settlement of $132,500 of outstanding convertible notes payable and $2,520 accrued interest and 16,556,976 shares of its common stock for net proceeds of $135,645 from equity drawdown under the Magna Purchase Agreement.
In March 2015, the Company issued 6,185,432 shares of its common stock in settlement of $25,000 of outstanding convertible notes payable and $1,226 accrued interest. In addition, the Company issued 635,357 shares of its common stock as true up shares relating to the February 2015 equity drawdown under the Magna Purchase Agreement."
AND
"Subsequent financing
On January 7, 2015, the Company entered into a Securities Purchase Agreement with KBM Worldwide, Inc. (“KBM”), for the sale of an 8% convertible note in the principal amount of $38,000 (the “Note”).
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on October 9, 2015. The Note is convertible into common stock, at KBM’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.
On January 28, 2015, the Company entered into a Securities Purchase Agreement with Fourth Man, LLC., for the sale of an 9.5% convertible note in the principal amount of $25,000 (the “Note”).
The Note bears interest at the rate of 9.5% per annum. All interest and principal must be repaid on January 27, 2016. The Note is convertible into common stock, at Asher’s option, at a 47% discount to the lowest daily closing trading price of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal at 150%, interest and any other amounts.
On February 19, 2015, the Company entered into a Securities Purchase Agreement with Vis Vires Group, Inc. (“VIS”), for the sale of an 8% convertible note in the principal amount of $38,000 (the “Note”).
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on November 23, 2015. The Note is convertible into common stock, at VIS’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.
"
Why would a company supposedly "making money" be borrowing pittances of like $25K and $38K at a time using the most dilutive, desperation, share price crushing type of floorless, convertible debt, "toxic" financing deals one can use- having to give 45% to 47% share discounts out to a high interest rate lender? Why?
They don't "make money" - simply not true. They make LOSSES, continual LOSSES to this day and their own SEC filings say just that.