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Make money? How? A perspective on this latest, highly dilutive, toxic, convertible debt note amount versus the salaries and bonuses of just two people in the "company":
The total note is maybe $300K ($307K, but it also has up to $30K legal fees deducted, see bottom of 8-K text, and may from the first lines, be only maybe $205K cash purchase price to BHRT depending on if BHRT meets all the clauses). So lets say for a $300K note, with 1 cent shares handed out (about 30 MILLION in dilution minimum, probably a lot more given Magna/Hanover's reputation upon some basic reading about them)- lets say BHRT gets about $270K tops to put in their bank after all the fees and what not, on the high side. $270K total.
Just Tomas and Comella got $500K and $300K bonuses handed to them this last 10-Q, respectively. That's $800K annually right there.
Tomas now got his base salary boosted to $525K a yr and Comella got a boost to $250K per yr + their $500K and $300K in promised bonuses for this yr. See last 10-Q filing, PAGE 25
So just those two, not even considering rent/lease, insurance, legal, accounting firm, a couple of employees, computer/phone, and all the other basic overhead expenses to run this tiny micro-cap: just these two's salary and now "perk" cash bonus are:
$525K + $500K = $1,025,000 for Tomas, yep, $1.025 MILLION per yr
$250K + $300K = $550K for Comella, over a cool half mil per yr
That's $1,025,000 + $550,000 = $1,575,000 or $1.575 MA MILLION consumed in cash, just to pay two people at a company of maybe 4 or 5 people total, and near zero cash at any given time per their own SEC filings, going concern warnings, and all the rest.
$1,575,000 / 12 = $131,250 PER MONTH it takes just to pay these two
PERSPECTIVE: They just did a convertible debt note w/ steeply discounted shares that will be highly dilutive and more than likely put huge downward selling pressure on the common stock for an amount that essentially doesn't even pay Comella's BONUS for the yr ($300K).
Not "trials" getting funded, not research and development, not funding a growing business or whatever- it won't even put a dent in paying the two people who keep getting ever bigger salaries and now ever bigger bonuses.
That note is about TWO MONTHS, maybe 2.5 months salary/bonus for two people - that's all it "buys" for the company. A couple of month's or so cash use, tops at their burn rate IMO. The 10-Q showed: "incurred an operating loss of $1,078,971 and used $507,059 in cash" or the 6 months ended June 30th, and that's before the $800K in bonuses plus salary increases were now tacked on.
They took on a toxic debt note for an amount not even making a dent in the salaries, let alone the bonuses of two people. THAT is "perspective" in my opinion. Add in all the other expenses, just burn rate of the business- and they had to take on a note with these horrendous terms, for a few month's at the most of cash? Really?
Well, not good IMHO. I don't see any phase II or III level "trials" getting "funded" or progressing or whatever because of this "finance deal". What happened to the "big funding" from some "deep pockets" firm and all (the supposed reason for the increase to 2 billion shares??)- that's been talked about endlessly? It never materializes. Just more dilutive ASHER type deals continuing, but only with worse and worse terms IMO. That's all I see. Not "making money", they never make any money. They spend and lose money and take losses and dilute- that's about all I ever see or have seen? All while the 10-K and then every 10-Q after it says the major trials are "ON HOLD FOR LACK OF FUNDING". But the bonuses and salaries aren't "lacking funding"- no.
That's my 2 cent take on it.
Here's from the later lines in that 8-K on this note deal- it's even better:
"The Purchase Agreement contains customary representations, warranties and covenants by, among and for the benefit of the parties. The Company also agreed to pay up to $30,000 of reasonable attorneys' fees and expenses incurred by Magna in connection with the transaction."
So on top of steep share discounts, front end potential discounts and all the rest- BHRT even has to pay this Magna "attorney fees" and "other fees", nice. Real sweet deal.
It's hard to tell, as I stated, how much actual cash BHRT will even bank when this is all said and done, but will owe the face value of the note from the way it reads, and at 12% interest, when people and businesses can get loans for maybe 3 or 4%, and even junk debt is maybe 6% or 8% tops in this zero interest environment. And Magna will have the right to convert those shares to free trading at any time they want from my read on it, 1 cent, or less, shares essentially. 30 million plus, low priced shares on the selling block at some point.
Amazing IMO.
Released at CLOSE OF MARKET on a Friday- the "usual" IMO. Perhaps some of this explains the heavy selling and dip to hitting .02 three times now in 2 days?
The 8-K shows prepared on Oct 7th, 3 days ago, but they waited till Friday close on the 10th to post it on the public PR channels?
This one is gonna take some research/digesting to fully figure out what it all means- but it sure doesn't look good IMHO, 2 cent opinion.
Bioheart, BHRT just took on a "MAGNA" deal today- as seen in this 8-K filing. WOW, IMHO. I've seen BHRT use ASHER and similar for years, but this "Magna" terms, they look unbelievable. Stunning IMHO how steep and brutal the terms are, all for a pittance of about $300K (I'm not even sure it's that much- it looks like Magna gets an "up front" discount and only pays like $200K actual cash to BHRT, for a $300K "note"?)
Wow, this Magna is like 2 notches below pay-day loan terms IMO. These are as steep a terms as I can remember seeing in a toxic finance deal. Holy cow IMO !!
http://www.sec.gov/Archives/edgar/data/1388319/000114544314001228/d31725.htm
"
Item 1.01 Entry into Material Definitive Agreement
Securities Purchase Agreement and Convertible Note
On October 7, 2014 (the “Closing Date”), Bioheart, Inc., a Florida corporation (the “Company”), entered into a securities purchase agreement dated as of the Closing Date (the “Purchase Agreement”) with Magna Equities II, LLC, a New York limited liability company (“Magna”). The Purchase Agreement provides that, upon the terms and subject to the conditions set forth therein, Magna shall purchase from the Company on the Closing Date a senior convertible note with an initial principal amount of $307,500 (the “Convertible Note”) for a purchase price of $205,000 (an approximately 33.33% original issue discount). Pursuant to the Purchase Agreement, on the Closing Date, the Company issued the Convertible Note to Magna.
$40,000 of the outstanding principal amount of the Convertible Note (together with any accrued and unpaid interest with respect to such portion of the principal amount) shall be automatically extinguished (without any cash payment by the Company) if (i) the Company has properly filed a registration statement with the Securities and Exchange Commission (“SEC”) on or prior to the Filing Deadline (defined below) covering the resale by Magna of all of the shares of Common Stock issued or issuable upon conversion of the Convertible Note and (ii) no event of default or an event that with the passage of time or giving of notice would constitute an event of default has occurred on or prior to such date. Moreover, $62,500 of the outstanding principal amount of the Convertible Note (together with any accrued and unpaid interest with respect to such portion of the principal amount) shall be automatically extinguished (without any cash payment by the Company) if (i) the Company has filed a registration statement with the SEC that has been declared effective by the SEC on or prior to the Effectiveness Deadline (defined below) and the prospectus contained therein is available for use by Magna for the resale by Magna of all of the shares of Common Stock issued or issuable upon conversion of the Convertible Note and (ii) no event of default or an event that with the passage of time or giving of notice would constitute an event of default has occurred on or prior to such date.
The Convertible Note matures on August 7, 2015 and, in addition to the approximately 33.33% original issue discount, accrues interest at the rate of 12% per annum. The Convertible Note is convertible at any time, in whole or in part, at Magna’s option into shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), at a fixed conversion price of $0.01035 per share (subject to adjustment). This conversion price represents a discount of approximately 55% from the lowest trading price of the Common Stock during the five trading days prior to the Closing Date. If the Company has not properly filed a registration statement with the SEC on or prior to the date that is 70 calendar days after the Closing Date covering the resale by Magna of all of the shares of Common Stock issued or issuable upon conversion of the Convertible Note, then, from and after such date, the Convertible Note
will be convertible at any time, in whole or in part, at Magna’s option into Common Stock at a conversion price equal to a 55% discount from the lowest trading price of the Common Stock during the five consecutive trading days ending and including the trading day immediately preceding the applicable date of conversion. At no time will Magna be entitled to convert any portion of the Convertible Note to the extent that after such conversion, Magna (together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of Common Stock as of such date. The Convertible Note includes “full ratchet” and standard anti-dilution protection.
The Convertible Note includes customary event of default provisions, and provides for a default interest rate of 18%. Upon the occurrence of an event of default, Magna may require the Company to pay in cash the “Event of Default Redemption Price” which is defined in the Convertible Note to mean the greater of (i) the product of (A) the amount to be redeemed multiplied by (B) 140% (or 100% if an insolvency related event of default) and (ii) the product of (X) the conversion price in effect at that time multiplied by (Y) the product of (1) 140% (or 100% if an insolvency related event of default) multiplied by (2) the greatest closing sale price of the Common Stock on any trading day during the period commencing on the date immediately preceding such event of default and ending on the date the Company makes the entire payment required to be made under this provision."
8-K, looks like more TOXIC CONVERTIBLE DEBT "financing" and the terms on this one are stunningly horrible IMO, even worse than the past ASHER or similar toxic/convertible firm, deals. Maybe ASHER isn't even doing deals with these guys anymore? So now they're tapping this firm "Magna" for about $300K of survival cash at extremely dilutive terms. Plus a 12% interest rate (beyond junk bond status) when interest rates are at historic lows. A share conversion price of $0.01035 . And a 55% discount- on conversion, WOW. Mega dilutive. This one even includes a "default provision", not anything I ever see or remember seeing in a ASHER or similar note in the past- with an 18% interest rate kick-up and then the note face value goes to 140% of outstanding- holy moly, that is wild IMO. Worse than the worst of even pay-day loan money. They must be really struggling to bring in any kind of "financing" IMHO, to accept or need to get terms like these. It's even stranger as it looks like BHRT only receives about $200K in cash, but the face value owed is $300K?? Got read this about 50 times to figure this one out- or find a forum that explains deals similar to this?? Wow again.
Also very interesting IMO, is why now is this "deal" full of a bunch of specific language about "Needing SEC approval of registration statement..blah, blah, blah" and involves upfront discounts and such tied to that? Remember the prior 8-K in which Tomas indicated that they had "questions" from the DTC about "eligibility" of shares or something to that effect? I wonder if that is all related to that?
http://www.sec.gov/Archives/edgar/data/1388319/000114544314000932/d31492.htm
"In addition, the Company has received a request from The Depository Trust Company (“DTC”) to confirm that shares of common stock deposited at DTC were eligible under the Rules and Procedures of DTC for deposit. The Company has responded to this request."
Not only is the their the traditional "death spiral" conversion provisions- the "reset" and all, but this one even carries a steep, up-front discount to Magna? Once again, where's the "big financing" so called "deal? All there is are these continued convertible, toxic note/debt deals trickling in- the reason IMO they needed to boost available shares to 2 BILLION, from 970 million- given the dilution rates, I'd guess they're gonna be bumping up against that 970 million real soon.
Look at some of the details in the 8-K disclosure, how bad these terms are:
"On October 7, 2014 (the "Closing Date"), Bioheart, Inc., a Florida corporation (the "Company"), entered into a securities purchase agreement dated as of the Closing Date (the "Purchase Agreement") with Magna Equities II, LLC, a New York limited liability company ("Magna"). The Purchase Agreement provides that, upon the terms and subject to the conditions set forth therein, Magna shall purchase from the Company on the Closing Date a senior convertible note with an initial principal amount of $307,500 (the "Convertible Note") for a purchase price of $205,000 (an approximately 33.33% original issue discount). Pursuant to the Purchase Agreement, on the Closing Date, the Company issued the Convertible Note to Magna.
$40,000 of the outstanding principal amount of the Convertible Note (together with any accrued and unpaid interest with respect to such portion of the principal amount) shall be automatically extinguished (without any cash payment by the Company) if (i) the Company has properly filed a registration statement with the Securities and Exchange Commission ("SEC") on or prior to the Filing Deadline (defined below) covering the resale by Magna of all of the shares of Common Stock issued or issuable upon conversion of the Convertible Note and (ii) no event of default or an event that with the passage of time or giving of notice would constitute an event of default has occurred on or prior to such date. Moreover, $62,500 of the outstanding principal amount of the Convertible Note (together with any accrued and unpaid interest with respect to such portion of the principal amount) shall be automatically extinguished (without any cash payment by the Company) if (i) the Company has filed a registration statement with the SEC that has been declared effective by the SEC on or prior to the Effectiveness Deadline (defined below) and the prospectus contained therein is available for use by Magna for the resale by Magna of all of the shares of Common Stock issued or issuable upon conversion of the Convertible Note and (ii) no event of default or an event that with the passage of time or giving of notice would constitute an event of default has occurred on or prior to such date.
The Convertible Note matures on August 7, 2015 and, in addition to the approximately 33.33% original issue discount, accrues interest at the rate of 12% per annum. The Convertible Note is convertible at any time, in whole or in part, at Magna's option into shares of the Company's common stock, par value $0.01 per share (the "Common Stock"), at a fixed conversion price of $0.01035 per share (subject to adjustment). This conversion price represents a discount of approximately 55% from the lowest trading price of the Common Stock during the five trading days prior to the Closing Date. If the Company has not properly filed a registration statement with the SEC on or prior to the date that is 70 calendar days after the Closing Date covering the resale by Magna of all of the shares of Common Stock issued or issuable upon conversion of the Convertible Note, then, from and after such date, the Convertible Note will be convertible at any time, in whole or in part, at Magna's option into Common Stock at a conversion price equal to a 55% discount from the lowest trading price of the Common Stock during the five consecutive trading days ending and including the trading day immediately preceding the applicable date of conversion. At no time will Magna be entitled to convert any portion of the Convertible Note to the extent that after such conversion, Magna (together with its affiliates) would beneficially own more than 4.99% of the outstanding shares of Common Stock as of such date. The Convertible Note includes "full ratchet" and standard anti-dilution protection.
The Convertible Note includes customary event of default provisions, and provides for a default interest rate of 18%. Upon the occurrence of an event of default, Magna may require the Company to pay in cash the "Event of Default Redemption Price" which is defined in the Convertible Note to mean the greater of (i) the product of (A) the amount to be redeemed multiplied by (B) 140% (or 100% if an insolvency related event of default) and (ii) the product of (X) the conversion price in effect at that time multiplied by (Y) the product of (1) 140% (or 100% if an insolvency related event of default) multiplied by (2) the greatest closing sale price of the Common Stock on any trading day during the period commencing on the date immediately preceding such event of default and ending on the date the Company makes the entire payment required to be made under this provision.
The Company has the right at any time to redeem all, but not less than all, of the total outstanding amount then remaining under the Convertible Note in cash at a price equal to 140% of the total amount of the Convertible Note then outstanding."
Look at the dilution- at a minimum it's about $300K at .01 cents or so, I think it's actually even worse given the 55% discount- I'll have to read/study it more. But lets just say $300K at .01, that would be 33 MILLION shares at a minimum, but again, w/ the 55% discount and "reset"- the part where the language says, " price equal to a 55% discount from the lowest trading price of the Common Stock during the five consecutive trading days..." I believe will make it even more than 33 MILLION shares. Man, for just $300K, a few month's cash to hang on IMO. 33 MILLION shares at 1 cent or lower hitting the market whenever Magna wants? That's gonna be a share price crusher to the common shares, again, IMHO.
Man, you talk about desperation terms- I'll have to look up this Magna, but this is like as steep a desperation finance terms I think I've ever read? It's amazing IMO. And only for about $300K- what, maybe a few months or so of survival cash- not anything even remotely close to funding a phase II or phase III trial or anything- it doesn't even cover the recent bonuses and salary increases to the "two" and other basic overhead- given their burn rate, IMO.
Interesting, I found this I-HUB page someone has built about firms/companies who deal with "Toxic Magna Group"- Bioheart's on the list.
http://investorshub.advfn.com/Clients-of-Magna-Group-and-Hanover-Holdings-25550/
Wow, just hit .02 cents, volume picked way, way up suddenly. That's the "sad state of affairs" IMO. Market cap going back under $11 million, back towards close to their outstanding debt.
The bid is in free fall- and look at the volume now, I don't think this is Joe Q. Retail seller. This is some "bigger boy(s)" unloading again IMO- probably the "finance" convertible share people, or some of the low priced warrants- still near double their money if unloaded in the 2 cent range, when they get shares in the 1 cents range.
I agree also, this could go back to .0141 - .0155 or even lower. Don't see any support to the bid, the low volume days have been amazing- where it's doing sometimes $2K a day total maybe, with 1 and 2 hour stretches w/o a single trade, but now drops like a boat anchor on much higher volume on the big selling day.
Technicals are just all broken down in here right now. Wouldn't want to try and pick the bottom till it settles.
"Most of the market has been selling off the last couple of weeks."??
The broader market has not been "selling off" to a loss of 25% to 30% in just a one month time frame as BHRT has? Thus "comparatively" BHRT has not "held up" up at all relative to the general market(s) IMO?
Further, in a 5 or 6 month period from the April/May BHRT PR run-up (.06 to .08 price range), one would now be down 60% to as much as a 75% loss (needing a 200% plus gain now just to get back to break-even)- while the broader markets have made huge gains? Again, how would that show BHRT "holding up comparatively well"
Not seeing it?
This AM, on higher volume, it's now dumping off, down almost 11% in a single move- and looks like it might test breaking below 2 cents here. The overall market is "flat" right now at best.
BHRT has broken well below it's 200 DMA and the 50 DMA also crossed under the 200 DMA. It's in a strong down trend and technical weakness, contrary to the overall market(s). BHRT has also been trading very sporadically for over a month now IMO, some days (recently) only trading maybe $2K for an entire trading day- with periods longer than 1 hour, sometimes 2 hours w/o a single trade being posted. It then gets a higher volume spike like just now this AM, and it drops almost 11% in a single blip- not very reflective of any broader market patterns that I'm aware of?
"What a sad state of affairs"- great post Pyrrhonian, very interesting and cogent IMO.
The analysis on how the cash or any "revenues" gets spent on bonuses is very thorough I believe.
Stated:
"For instance, what if the CEO and CSO decided to cap their salaries at $125k and $75k respectively, with no bonuses or stock options going forward (they won't starve right?). That's $575k/yr plus another $200k-$800k relegated to clinical trial research. Well, in 3-4 years, that would equate to $3mm-$6mm in funding. They could easily blow out a decent size randomized Ph II on that. That would produce data to enable partnering, and you're off and running. Instead, they feast."
Great analysis on how much that bonus money could have or would have amounted to if spent on trials- very good take on it IMO. But of course the trials don't appear to be advancing (see latest 10-Q stating "waiting on funding") as all the cash/revenue goes straight to salary boosts and then even bonuses. Great observations IMO.
Volume still way off today and the 50 DMA is solidly broken below the 200 DMA. Long periods where no trades even take place- sometimes an hour or more. We'll have to see I guess.
About $1,275 total dollars traded today, wow.
And last trade was posted at about 2:56 PM Eastern, meaning it flat lined out w/o a single trade for more than 1 hour, despite the bid being so low at .0215 Seems like one large or even medium sized seller in here now and this is going under 2 cents a share IMO. It's totally broken down below the 200 DMA and the 50 DMA is now crossing under the 200 DMA.
Don't know how they're gonna raise any big financing on numbers and volume like that? Market cap is now back at just $11 million, pretty close to their outstanding major debts again.
Seems like all the PR and good news just isn't moving the needle at this point?
Not sure anymore IMO if they're now supposed to be some kind of off-shore, 2nd/3rd world "medical tourism" company offering unproven "cell treatments and therapies" for cash in these sort of odd-ball partnership deals? Or are they even still attempting to be a real "heart research" and FDA type trial and medical product research company anymore or what? I mean, the name still says BioHEART, but that sure doesn't seem to be the focus or goal anymore that I can see?
It's very confusing IMHO? I'm not "getting it" or the long term plans anymore? It used to be real clear- "heart" related research trials to get an FDA approved product to the finish line- I just don't see that anymore, per my 2 cents. Not when the R&D budget is running $5K a month but 2 people just got a sum total $800K in just "bonuses" ($800K/12 = $66K a month) and then a few pages later in that same 10-Q filing, it says all major trials are "on hold" for "lack of funding" and they finished the qtr near cash broke again??
I think Pyrrhonian pointed out and made that same point pretty well IMO
There it goes - could see sub 2 CENTS very soon IMO. There's no volume and no bid support.
Last week the 50 DMA broke under the 200 DMA, a major trading signal of weakness. Lower lows and lower highs and vol down to a pittance, except it spikes on large sell-off days.
End of year has typically not been good on this one. It made it's all time low of 6/10ths of one cent in Dec last yr, and broke into the 1.X penny range in the couple of months leading into that- just about right now on the calendar.
Always makes me wonder if end of yr is not when a lot of the convertible debt holders and other holders of the cheap issued shares do some major dumping? I've looked at charts and seems a pretty reliable pattern to me, but who knows?
Will have to see- but the technicals look real weak here IMO.
What am I talking about?? Exactly what I stated in plain English, that's what?
Reply stated: "Each sale is complimented by a purchase... It's a price haggle, that's all. "
If that "theory" were true, then a stock's price would never move up or down.
The stock today closed DOWN, DOWN hard as in negative 7.5% in a single day's session and on higher than avg volume. That means, and it's not debatable, it's a simple fact- it means that the net number of SELLERS was greater than the net number of BUYERS and that in order to "find anyone willing to buy", aka match a sell and buy order, the price had to be continually lowered, in order to "make a market".
That's how a "market" works. If no buyers want the shares, then the price is continually dropped until one is found to step in and cause a "market" to "be made". Thus the bid collapsing as it has been for over a month now- causing it now to be sustained well below both the 200 DMA and the 50 DMA. It's in a down trend, and that also is not debatable, per all standard definitions of technical trading.
The stock is showing weakness and not any strength at all- by being sustained below it's own 200 DMA and now the 50 DMA beginning to cross under the 200 DMA.
That's what "I'm talking about".
DOWN 7.5% on much higher volume = someone is "loading"??
Looks like just good ole fashioned selling to me? To be down 7.5% on much higher vol, would tell me that the sellers far outweigh any buyers- so how could there be "loading" taking place?
It would be the opposite, or "unloading" or dumping, no??
4 weeks under 200 DMA and bid has been dropping steadily. Bid dropped again today and hit the .022 area on higher volume sell off. Making lower highs and lower lows.
The technical chart death-cross formation is setting up as the 200 DMA and 50 DMA just started to meet today.
It hasn't been able to trade above the 200 DMA now for near a month and is well below the 50 DMA meaning a sustained down trend is in place.
End of year on this one has been typically weak when looking at longer term chart- would not be surprised IMO to see it break under 2 cents now, or before end of yr. Last yr it made its all time low of 6/10ths of one cent in the DEC time period, not that far off, and was in the 1 cent range leading into that all time low.
PR's haven't budged it and volume has been way, way off this past few weeks, unless a sell off day like today. A few days now, it literally sat, and didn't have a single trade for 2.5 hours or more, after only trading maybe 10K to 20K shares after the open (about $250 bucks worth in the one case).
Wondering what happened to that big funding news? 2 BILLION shares authorized, but no other word on anything else? Looking pretty weak here IMO. Will have to wait and see.
"Phase 3 Myocell enrollment completion "?? How do they reach "completion" when there's presently NO "enrollment" taking place?
Latest 10-Q Filing, PAGE: 27
"We are seeking to secure sufficient funds to reinitiate enrollment in the MARVEL and REGEN trials. If we successfully secure such funds, we intend to re-engage a contract research organization, or CRO, investigators and certain suppliers to advance such trials. We have initiated and enrolled our first patient in the MIRROR trial in 2013. The trial is very similar to the MARVEL trial but focusses on sites outside the US. We will continue enrollment in the MIRROR trial once we have secured sufficient funds."
Thus, to date, ONE patient has been "enrolled" in the stalled-out MIRROR trial. So how can enrollment reach "completion" when there is presently NO "enrollment" taking place? It states "we will CONTINUE enrollment once we have secured sufficient funds."
To "continue" means that it's presently stopped and needs to be restarted. The present "enrollment" count is ONE according to that 10-Q filing and statement.
"issued shares were purchased at a 25% premium"??
What shares were "purchased"? When? There's been no "purchase" of any shares that I'm aware of (other than convertible debt financing with ASHER and similar?)
When were shares "purchased" in which cash/money arrived at the company? (other than possibly some warrants being exercised which would result in cash being paid to BHRT- but those were priced well below market- as in the 1 CENT range).
Shares were "ISSUED" in "debt-to-equity" swaps. They weren't "purchased" by anyone, as in cash changing hands and arriving in the accounts of BHRT? What page of the 10-Q or 10-K is this on?
"30% reduction in debt is phenomenal"- well it wasn't "free"; one has to look at the corresponding common stock/shareholder DILUTION during the same time period, the dilution was massive, as in more than doubling the outstanding share count in about 12 months and still climbing at a steep pace (over 50 million shares diluted/issued in just the last reported qtr, passing 600 million fully diluted shares, and the authorized now increased to 2 BILLION).
It's not like they generated cash/cash-flow and used it to pay down debt or anything. The operational loss last qtr was very close to the same yr over yr period period (see 10Q filing). They've never been cash flow positive or internally generated one dime of cash from operations that I'm aware of from reading their SEC filings? They simply endlessly issue more common shares into the market.
If that's "phenomenal", then the common share holders are being further and further reduced each time in their percent they own; i.e. each share in their portfolio is being devalued continuously.
"Debt cut in half from $14million"??
Latest 10-Q filing, PAGE 4:
TOTAL current liabilities:
Period ended June 30, 2014: $9,759,137
Period ended June 30, 2013: $13,429,404
That's not "cut in half" or what would be 50%?
Half of $13,429,404 is $6,714,702. That is not the case.
The reduction from $13.4 million to $9.7 million is approx. 30% of a reduction, not 50% of "cut in half".
Same 10-Q filing (latest, period ended Q-2, 2014) 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 six months ended June 30, 2014, the Company incurred an operating loss of $1,078,971 and used $507,059 in cash for operating activities. As of June 30, 2014, the Company had a working capital deficit (current liabilities in excess of current assets) of approximately $9.6 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."
Notice, $9.6 MILLION current liabilities in excess of current assets. It's not been cut in half in the past 15 months. Also, the "revenues" have been off-set by extremely large increases in their expense/cost line. See page 5, same 10-Q filing. Expenses grew faster than "revenues".
From the South Africa article link- discussing S. Africa law and regulation of un-proven "stem cell treatments" and "medical tourism" in S. Africa.
Last paragraphs near the bottom: (notice, you DO NOT find "diabetes" or "arthritis" or "and more" and "spinal cord" mentioned in "proven safe" treatments)
http://www.sajbl.org.za/index.php/sajbl/article/view/235/226
"Conclusion
The increasing demand for stem cell therapies should be countered by efforts to raise public awareness about the types of treatments that are scientifically sound and safe. To date, proven stem cell treatments include bone marrow transplants, bone and skin grafts, and treatments for blood and immune disorders, leukaemia and corneal disease. Patients must be informed that multiple diseases cannot be treated with the same type of stem cells.
Weak legal enforcement of the MRSCA permits the emergence of medically unsound and unethical practices that may exploit emotionally vulnerable patients.6 The only trusted sources of evidence confirming that a treatment is safe and effective are (i) independent clinical trials, approved by government regulatory agencies; (ii) evidence of ethical clearance; (iii) publication and peer review assessment in international scientific journals; and (iv) replication of results by other laboratories.
False advertisement and promises of miracle cures should be banned. Stringent rules are needed to ensure that pre-clinical studies and well-controlled clinical trials have been conducted before introducing cells into the patient.6 There must be well-proven records which indicate that the desired therapeutic effect will, under normal circumstances, be achieved.6 The person who administers such therapies must be medically qualified and familiar with stem cell therapies for a prescribed number of years. Furthermore, any work involving stem cells that will be (re)introduced into patients must be conducted in accredited or authorised institutions only, under strictly controlled conditions6 to ensure that this material is not contaminated and that no adverse effects will be produced under normal conditions.
Despite the legal requirements for the registration of biological medicines, the MCC has capacity problems and an ineffective law enforcement arm.32 The most recent example is the inability of the MCC’s law enforcement unit to deal with the so-called ‘snake doctors’ who offer bogus medical cures, including for HIV and AIDS. To compound the existing situation, the legal framework relating to the regulation of human tissues is generally unsatisfactory."
Doesn't sound to me like the S. African regulatory bodies are all "down" and "cool" with ole stem cell "treatments" being done in their backyards? Sounds like they see huge problems, are understaffed and realize they got some big problems going on IMO. That's what that article just explained to me, IMO. From the S. African Journal of Bioethics and LAW.
Doesn't explain anything. The company, BHRT is located on U.S. soil- so if they are providing any product(s), services, etc that goes into this "treatment" and it's being made here, the profits and money of the 49% ownership return here, etc, then the FDA is involved IMO, as the product is a "drug" or "medical" device and under their regulatory authority.
The article sited is discussing S. African law, which means nothing to a company operating off of U.S. soil.
Pfizer for example, can not make an un-approved drug on U.S. soil- and then simply claim that since they don't market it here, everything is cool, aka we're only selling it in the 3rd world or whatever. Not how it works as far as I'm aware?
If you bring your money back here, aka revenues and profits, if you produce anything here that goes into the process/product/procedure or whatever- then it's "regulated" here as far as our regulatory bodies are concerned.
Else, IMO, you'd have to have a fully "off-shore" subsidiary or similar that fully handles the non U.S. regulated items and insure that no money, profits or anything else is ever repatriated back to the U.S. side, otherwise, you're under our laws and regulations IMO.
Further also, it says Comella "trained" and provided her "expertise" to do these medical procedures (and she's not even a physician)- and then returns back to U.S. soil as her home base of operations. Just watch the 60 minutes piece on questionable stem cell "treatments" and how long the arm of U.S. law is when it comes to physicians, medical "treatments", "cures" etc- done in this country and especially U.S. based people/companies attempting to provide those services off-shore, outside the U.S. borders.
"treating patients in the new facility! "?? How can Bioheart be "treating patients" for anything when they have no FDA or Euro or otherwise "approved" so called stem cell based "treatments" for anything? These "patients" are thus guinea pigs for un-approved, un-scientific, experimental, cash payment so called "treatments"? Wow, IMO.
From the PR:
"Last week a total of 12 patients underwent autologous cell therapies for the treatment of spinal cord injury, diabetes, arthritis, autoimmune disease and more."
"stem cells "are not proven as a "treatment" for a single thing indicated in that paragraph- not one. And what is "and more"?? Who writes a PR line like that? List what they were supposedly "treated" for- not "and more"? What does that even mean?
From same PR:
"Kristin Comella, Bioheart's Chief Science Officer, who attended the grand opening, said, "The facilities in South Africa are top notch and mirror FDA facilities that we have in the U.S. Bioheart has provided the necessary training and expertise to the staff at SASCI. "
What FDA facilities in the U.S.? Bioheart has NO, NONE FDA approved stem cell based "product(s)" in the U.S., let alone "treatments" or "facilities" in which medical "treatment" can be used- unless under a strict, FDA approved "trial" protocol? What's that statement supposed to mean?
From same PR:
How can Bioheart provide the "necessary training" to supposedly "treat" things like "diabetes" and "arthritis" and "autoimmune" whatever- they have ZERO expertise or approved anything in those areas? So how do they train others in those supposed "treatments"? Who at Bioheart is qualified and has any M.D. or medical license to train a physician to "treat" anyone for something like "diabetes", let alone do it with an unnproven, experimental "treatment" such as using stem cells?
WOW, IMO. This is fascinating stuff. Wild, IMHO. The FDA must be interested in this, IMO.
Oh, and as usual- NO contact info for the "new facility" - not an address, phone, web site, email, nothing. What a surprise IMO. So "medical tourists" will find this place how, so they can get their "experimental" I guess "treatments" there?
Oh, and who is it again, in the S. African Ministry of Health exactly, that BHRT is supposedly "working with"? I'm gonna email the "Ministry" and ask about their "Bioheart program" and ask for names, titles, etc. Just curious is all. Would like to know what the "program" is that they have for "stem cells" in S. Africa involving the "Ministry of Health" and Bioheart- should be interesting, IMO.
Bid just dropped again to .0231. It took from 1:11 PM Eastern to 3:54 PM Eastern to post a single trade- and it dropped it 2% more to down 6%.
Now they have the spread back at Grand Canyon wide- like they may try and "paint the tape" on closing, maybe one micro trade in these last few minutes to make it look like it didn't trade down, nearly as hard as it did all day.
3 more minutes for the 15 minute delay- lets see where they close it on this huge spread they just opened up with bid at .0232 and ask at .0259, hard to believe that spread is real?
There it is, 4 PM Eastern and they closed it at .0240, down 4%. Squeezed a little micro trade in there at the end- to paint it up 2% from being down 6%. 3:56 PM Eastern was last trade- just a tad to push it up, looks like.
But flatlined out almost half the trading day and low was .0231, bottom dropping out of the bid - interesting. Hanging well below that 200 DMA for heading into 2 plus weeks now.
Over 2.5 hours, almost 3 hours now since last trade (just after 1 PM Eastern)- even with the bid and ask dropped so low, just no buyers stepping up to the plate? Has just totally flat-lined out.
Kinda strange, IMO?
"Only up from here on any news."???
They just put out "news" last week- the big "South Africa PR" and it's going down? Not up?
It's below the 200 DMA and well below the 50 DMA, in a downtrend. It's essentially back to a 2 cent stock, maybe 2.5 cent on a good day. It's taken about a 20% to 25% loss in just about a one month's span? That's not looking real solid IMO.
It's taken a more than 50% to approx. 70% loss from the April PR run-up, high of .08, then .06 or so- a huge loss for anyone who bought those highs, only 5 short month's ago.
There it went- bid and ask just collapsed again, back below the 200 DMA. .0231 bid and .0240 ask (spread is wide).
It had been flat-lining, not as bad as the past couple of weeks, but it was still 20 to 30 plus minutes between trades and the spread was wide open earlier too. Looks like they couldn't hold it up apparently?
The big PR last week- I guess, IMO, can't put any gas back in the tank? It's caught a case of "PR FATIGUE" IMHO. They don't even list a simple address or location or web site for the doctor and "new facility", I mean how much can that PR really amount too then? First thing most would ask, IMO, is where's it located, how big is this "new deal/facility", where's the monetary projections for the 49% BHRT ownership, what's the facility look like, what's this Dr. Bell's expertise in stem cells, etc.? I mean they say they can supposedly "reach and provide therapies or treatments or whatever to 51 MILLION" people- which just happens to be essentially the entire population of S. Africa? Actually it says "more than" 51 MILLION.
Exact quote from PR:
"Dr. Walter Bell and his team will offer these therapies to the more than 51 million people living in South Africa as well as being a premier site for medical tourism."
But not an address or phone or web site? Really? How come? How do you go there as a "medical tourist" if you can't even look it up on Google maps or a simple web site or whatever? How does that work? Extremely vague IMO.
Opened on $28.16 cents traded (1024 shares), supposedly "up" plus 4%. And now it's down 4.92%.
The spread is back to Grand Canyon wide- looks like they need to try and get it back in that 2.75 to 3 cent range which is where they appear to do all the dumping for the big boys, who hold 10's of millions of shares BHRT handed out at about 1 to 1.5 cents each (see most recent 10-K/10-Q filings), then wash, rinse and repeat.
It's been the pattern since the March/April PR run-up, then all down hill essentially from there, with a pop or two along the way, which always has selling into that strength, bringing it right back to the 2 cent range approx.
That seems to be about all it's going to do. They continue to dilute at a furious rate, rely on toxic convertible debt financing, and any "revenue" has already been consumed, IMO, in huge base pay and "bonuses" to just two people in the company. Just the bonuses for this yr alone total almost $1 MILLION ($500K for Tomas and $300K for Commela = $800K). None of this "revenue" has, or will go to "trials" IMO, it's already been promised in the huge base salary and bonus "perks" department. $5K a month being spent on R&D, and they're supposedly going to run FDA quality, phase II/III trial(s) , plural, on that pittance of an R&D budget? No, don't think so IMO.
How much has expenses/spending increased for base salary/bonuses for just the two insiders?
End of yr 2013 10K filing, PAGE 71:
Tomas 2012: Base salary was $247,585 , bonus was $0, total compensation $347,585
By end of 2013 he'd perked that up to the following per the table page 71:
Base salary $391,667, bonus $375,000 and total comp package $936,804
Meaning he'd almost TRIPLED his total comp package in a yr- the yr that produced the lowest stock price in company history, 6/10th of 1 cent, end of 2013.
Comella, 2012:
Base was $105,671 and bonus was N/A and total compensation was $105,671
By end 2013 she'd been perked up to (same table page 71)
Base pay $159,167, bonus of $125K and total comp package $366,083
(a better than TRIPLE in a single year- nice!)
But wait, it gets better. Now comes the 2014, Q-2 10-Q filing- and MORE base salary and another, bigger bonus round for "the two".
Latest 10-Q, PAGE 25:
"On July 28, 2014, the Company’s Board of Directors approved the 2014/2015 salary for Mike Tomas, Chief Executive Officer, at $525,000 per year, beginning July 1, 2014 with an incentive bonus ranging from $150,000 to $500,000. In addition, the Board of Directors will grant Mr. Tomas options to be determined on or before June 30, 2015. The Company’s Board of Directors approved a bonus of $500,000"
So, in two years essentially, he boosted his base pay from $247,585 to now $525K (a real sweet DOUBLE) and he added on another "bonus" payment of $500K. Making two yrs of bonuses of $300K + $500K = $800K in just 2 yrs, almost $1 MILLION dollars.
So just Tomas' annual base pay + bonus now will consume over $1 MILLION in cash from the company ($525K + $500K = $1 million)- for a company that just ended the most recent qtr with a grand total of $92K cash in the bank.
Comella, from same 10-Q, most recent filing is now getting:
"On July 28, 2014, the Company’s Board of Directors approved the 2014/2015 salary for Kristin Comella, Chief Scientific Officer, at $250,000 per year, beginning July 1, 2014 with an incentive bonus ranging from $100,000 to $300,000. In addition, the Board of Directors will grant Ms. Comella options to be determined on or before June 30, 2015. The Company’s Board of Directors approved a bonus of $300,000 "
So that's $250K base + $300K "bonus" for her = $550K of the company's cash to fund her. Not including their stock options and "other" perks either. So, just Tomas and Comella are going to consume over $1.5 MILLION in cash- and what are the supposed "revenues" (after cost of sales) going to be? Not enough to cover even those salaries and bonuses IMO.
So how much cash will be consumed just to "fund" Tomas + Comella, just two people in a cash poor company?
$525K + $500K (Tomas) + $250K + $300K (Comella) = $1,575,000 annually for TWO PEOPLE = $1,575,000/12 = $131,250 PER MONTH CASH. (remember, the company just finished Q-2, with $92K TOTAL CASH ON HAND left, per the 10-Q filing). THAT is "perspective" IMO.
In about a 2 yr period, two insiders have for the most part nearly TRIPLED their own pay packages- while the company can't fund R&D and trials per their own SEC filing comments. Do you know people in this economy getting triple salary increases in a 2 yr period, while their company is in dire financial condition? I sure don't? I know companies doing pretty well- fully profitable, growing at high rates, etc and I don't know anyone in them that tripled their pay packages, not even doubled their pay packages, not in these economic times? And those numbers don't even include stock options to Tomas and Comella, and they've each received large blocks of those too, some vesting immediately.
But the key trials (Marvel, Regen and Mirror) can't advance why again, for "lack of funding" (see same 10-Q filing, page 27, company's own words)
The much touted "revenues"- making zero difference to the long term prospects of this company IMHO. Not a dime of it's going to fund "trials" that I can see from reading the SEC filings, it's all, already been consumed and promised to insiders. That's my read on the simple math of the SEC filings.
One day- a trend does not a maketh, not even close. "Stablized" at what- about a 2.5 cent stock, with a market cap close to their current debt, agreed. The stocks been in a protracted down trend- spending most of its time below not only the 50 DMA, but also the 200 DMA.
Other than that, one day's trading doesn't change anything.
What "trial results"? None of their major, phase II/III trials are advancing at all, per the latest 10-Q filing, for "lack of funding"? So what "trial results" are there that matter? Which ones?
Technical analysis DEATH CROSS setting up - it's getting real close. The 200 DMA and 50 DMA have been merging for the past month.
If the 200 DMA breaks above the 50 DMA (same as 50 DMA dropping below the 200 DMA) it's a major bearish, heavy selling signal typically. It normally means a sharp price downtrend is coming.
BHRT is technically in a down trend right now- as it's been trading well below it's 50 DMA and has also been below the 200 DMA for about 10 trading days now. Any stock trading below the 200 DMA shows extreme weakness per technical analysis. The PR "news" today didn't budge it above the 200 DMA, in fact it sold off 4% and also sat for about 1.5 hours, flat-lined at the end of the trading day. The last trade posted was 2:36 PM Eastern, almost 1.5 hours before market close at 4 PM. Not a single trade in that 1.5 hours and the vol today (despite the PR "news) was low, lower than even the recently low averages.
http://www.stockopedia.com/chart-signals/death-cross-5179/
http://www.nasdaq.com/investing/glossary/d/death-cross
ONE PATIENT "enrolled" and then NOTHING. It's been parked- sitting, going nowhere. It never moved past ONE patient "enrolled". It's comedic IMO.
From the latest 10-Q, PAGE 27:
"We are seeking to secure sufficient funds to reinitiate enrollment in the MARVEL and REGEN trials. If we successfully secure such funds, we intend to re-engage a contract research organization, or CRO, investigators and certain suppliers to advance such trials. We have initiated and enrolled our first patient in the MIRROR trial in 2013. The trial is very similar to the MARVEL trial but focusses on sites outside the US. We will continue enrollment in the MIRROR trial once we have secured sufficient funds.
"
So, in a period now surpassing a YEAR (July 2013 to now Sept 2014), ONE, ONE patient was "enrolled" in MIRROR. The word MIRROR didn't even appear in the 10-Q prior to this last one.
Marvel and Regen- go back to about the 2009/2010 period- and nothing has advanced on them since. Last time I checked- it's Sept. of 2014.
Phase I?? What difference does a phase I make when you've had phase II/III trials that you could not move forward for 4 plus yrs now? So when this phase I you're promoting- when it supposedly needs to become a phase II to advance- what's going to fund it, since they can't fund the phase II trial(s), plural, they already have?
It's 8 plus yrs for that phase I to even have a remote chance at becoming a salable product, and at least several hundred $million to get it through a phase II and then a phase III. How's that supposed to happen?
What's the point of starting back at square one with a bunch of phase I and "review board" blah, blah whatever- when you never made any progress on your key, major, once FDA style trials began years ago? What's the point? It's just to generate PR IMO. What else can it amount to- when they can't fund or advance what they have on their plate now?
WHY is Marvel, REGEN and now MIRROR- all stalled and going nowhere? Who cares about a 5 person phase I done down in Mexico? What's that going to amount too? What?
"and trials moving along."??? Really? Which ones?
Latest 10-Q, Q2 2014, PAGE 27:
"We are seeking to secure sufficient funds to reinitiate enrollment in the MARVEL and REGEN trials. If we successfully secure such funds, we intend to re-engage a contract research organization, or CRO, investigators and certain suppliers to advance such trials. We have initiated and enrolled our first patient in the MIRROR trial in 2013. The trial is very similar to the MARVEL trial but focusses on sites outside the US. We will continue enrollment in the MIRROR trial once we have secured sufficient funds.
"
Remember the MIRROR trial hype PR- the big ole "new" ole phase III? Remember? ONE patient "enrolled"- that's it. Never moved past that. Waiting for "funding", despite the PR hype about it saying it was "FULLY FUNDED" by Bioheart. I guess "fully funded" has different meanings too, like so many things involving this company? If it's now not enrolling, because it's waiting on "funding", then how was it "FULLY FUNDED" clear back in July of 2013? How does that work? How?
http://bioheartinc.com/assets/press/2MirrorTrialInitiatedFinal.pdf
Bioheart, IMO, also never answered these questions from that MIRROR PR-
"Bioheart intends to continue enrollment in the MIRROR trial while hold items are addressed with the FDA."
WHAT is "on hold" by the FDA and why? Were these "hold items" ever resolved?
THOSE are the qty-3 "key" trials they have (phase II/III) and they are not going anywhere, the first two have been stalled, dead in the water for 4 plus yrs now. Which trial(s) plural, are supposedly "moving along"- at least any that matter?
A 2.4 cent stock price and cash broke after a barrage of near endless PR and the "big revenue" increases.
That, IMO, is a giant LOL. A market cap that still barely exceeds their present debts. LOL. LOL. Yeah, funny as heck IMHO.
And? So? It's still 100% true. What serious level revenue have they produced to even come close to stemming their losses?
Do you read the 10-Q or 10-K filings? Their expenses increased greater than any "revenue", thus their loss from operations was essentially unchanged and they're still tapping toxic debt financing for survival, finishing the last qtr with a grand total of about $92K cash on hand. Total. $92K cash. I know people with cars that cost that much- and they're not "wealthy" by any stretch, it's a new Mercedes. A company is going to run multiple phase II/III trials with $92K cash remaining in the bank? That's a giant LOL.
Lets review some facts from some recent SEC filings:
1) Cash and cash equivalents end of this Q2 was $91,221.00
(essentially broke) Page 4, 10-Q filing
2) Net loss from operations: latest 10-Q page 5:
Q2 2014 after supposed "big revenues" was (1,078,971)
Q2 2013 net loss from operations same 6 month period (1,123,232)
What is that, $46K difference? What difference did the "revenue" make?
3) SG&A or G&A expenses increased massively- negating any "revenue"
Marketing, general and administrative 6 months ended Q2 2014
$1,898,577
Marketing, general and administrative 6 months ended Q2 2013
$1,147,553
That's an increase of $1,898577-$1,147,553 = $751,024
That negates any so called "revenues" and doesn't even include the new pay increases and new bonuses for Comella and Tomas.
4) Some recent toxic debt deals- look at the paltry sums- why would they need such trickles of cash, unless desperate?
Most recent 10-Q, PAGE 14 and 15:
"Asher Notes (During this year)
During the six months ended June 30, 2014, the Company entered into a Securities Purchase Agreements with Asher Enterprises, Inc. (“Asher”) or affiliates, for the sale of 8% convertible notes in aggregate principal amount of $183,000 (the “Asher Notes”).
The Asher Notes bear interest at the rate of 8% per annum. As of the quarter ended June 30, 2014 all interest and principal must be repaid nine months from the issuance date, with the last note being due February 16, 2015. The Notes are convertible into common stock, at Asher’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. The Company has identified the embedded derivatives related to the Asher Notes."
"Daniel James Management
During the six months ended June 30, 2014, the Company entered into a Securities Purchase Agreements with Daniel James Management (“Daniel”) for the sale of 8% to 9.5% convertible note in aggregate principal amount of $60,000 (the “Daniel Notes”).
The Daniel Notes bear interest at the rate of 8% to 9.5% per annum. As of the quarter ended June 30, 2014, all interest and principal must be repaid one year from the issuance dated, with the last note being due May 29, 2015. The Daniel Notes are convertible into common stock, at holder’s option, at a 47% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. The Company has identified the embedded derivatives related to the Daniel Note."
"Fourth Man, LLC
During the six months ended June 30, 2014, the Company entered into a Securities Purchase Agreements with Fourth Man, LLC. (“Fourth Man”), for the sale of an 8% to 9.5% convertible note in the aggregate principal amount of $50,000 (the “Note”).
The Notes bears interest at the rate of 8% to 9.5% per annum. As of the quarter ended June 30, 2014, all interest and principal must be repaid one year from the issuance dated, with the last note being due June 26, 2015. The Notes are convertible into common stock, at Fourth Man’s option, at a 47% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. The Company has identified the embedded derivatives related to the Fourth Man Notes."
How bout the base pay increases and bonuses alone- for just two people, that will consume all so called "revenues increases" brought in to date?
Most recent 10-Q, PAGE 25:
"NOTE 13 — SUBSEQUENT EVENTS
Officer compensation
On July 28, 2014, the Company’s Board of Directors approved the 2014/2015 salary for Mike Tomas, Chief Executive Officer, at $525,000 per year, beginning July 1, 2014 with an incentive bonus ranging from $150,000 to $500,000. In addition, the Board of Directors will grant Mr. Tomas options to be determined on or before June 30, 2015. The Company’s Board of Directors approved a bonus of $500,000 and options to acquire 10,000,000 shares of the Company’s common stock for ten years with four year vesting and a cashless exercise provision at an exercise price equal to the five day average closing price of the Company’s common stock as of August 1, 2014. The cash bonus may be paid in the form a six month promissory note.
On July 28, 2014, the Company’s Board of Directors approved the 2014/2015 salary for Kristin Comella, Chief Scientific Officer, at $250,000 per year, beginning July 1, 2014 with an incentive bonus ranging from $100,000 to $300,000. In addition, the Board of Directors will grant Ms. Comella options to be determined on or before June 30, 2015. The Company’s Board of Directors approved a bonus of $300,000 and options to acquire 5,000,000 shares of the Company’s common stock for ten years with four year vesting and a cashless exercise provision at an exercise price equal to the five day average closing price of the Company’s common stock as of August 1, 2014. The cash bonus may be paid in the form a six month promissory note."
Notice, the company is so cash poor- they can't even pay those bonuses out of present cash on hand or cash flows- so they're going to issue "promissory notes" for them. More debt owed to insiders, w/ interest of course.
How bout some recent deals- using shares to pay common bills as the company is cash poor- despite supposed "revenues"?
Most recent 10-Q, PAGE 25, for just a sampling- one can find a page like this in every 10-Q and 10-K going back years:
"Subsequent issuances
In July 2014, the Company issued an aggregate of 1,006,451 shares of its common stock for services provided.
In July 2014, the Company issued 155,677 shares of its common stock in settlement of accounts payable of $6,227.
In July 2014, the Company issued an aggregate of 6,985,495 shares of its common stock in settlement of related party notes payable, accrued interest and other obligations in aggregate of $279,419.
In July 2014, the Company issued an aggregate of 2,640,625 shares of its common stock in settlement of notes payable of $32,500.
"
Why do they need to dilute and pay people for things like "services rendered" when they have supposed "big revenue" as you claim? Well, cause they have no cash, that's why.
How bout the dilution from just Q1 to Q2- over 50 MILLION shares in a single quarter. Why, with everything supposedly "different" now as you claim?
Page 1, most recent 10-Q:
As of August 1, 2014, there were 517,272,472 outstanding shares of the Registrant’s common stock, par value $0.001 per share.
Page 9, most recent 10-Q:
" Fully diluted shares outstanding were 588,670,163 and 290,900,920 for the three months ended June 30, 2014 and 2013, respectively and 553,719,873 and 264,534,723 for the six months ended June 30, 2014 and 2013, respectively."
What about the simple fact- that despite all that dilution, all that toxic financing, giving of pay increases and bonuses- they've not advanced a single, major trial one iota? Why? Why is that?
Most recent 10-Q, PAGE 27:
"We are seeking to secure sufficient funds to reinitiate enrollment in the MARVEL and REGEN trials. If we successfully secure such funds, we intend to re-engage a contract research organization, or CRO, investigators and certain suppliers to advance such trials. We have initiated and enrolled our first patient in the MIRROR trial in 2013. The trial is very similar to the MARVEL trial but focusses on sites outside the US. We will continue enrollment in the MIRROR trial once we have secured sufficient funds."
Key trials- DEAD IN THE WATER for lack of "funding"? What "revenues" are you talking about again?
Agree, down 4% on the "big PR news" about a "Doctor" in place that has no address. Definite LOL. Big LOL. Cracks me up.
51 MILLION- as if every man, woman, and child (infant) in S. Africa is a candidate for some supposed stem cell "treatment", funniest thing I've read in a PR in a long time.
Super LOL. Totally agree !
" but yet very little selling despite the news. "??
Well, it's down 4% despite the "big news"- which says there was quite a bit of net selling.
Looks like some more "PR FATIGUE" IMO. That PR went over like a dud as far as the market thinks- look at the volume and the 4% price drop? What does that indicate?
Still no address or simple contact info on this "new facility" I guess? Oh, well? Seems like pretty simple and extremely common info that would be given if a "facility" just had a "grand opening" and was supposedly now ready to reach and treat the entire population of a country, according to the wording of the PR (51 MILLION)? What's the big mystery? The big PR says Comella "went there"- question is, where is "there"? It doesn't have a simple address so we can look it up and view it on Google maps if we want? I've been in S. Africa and it's a reasonably modern area- they actually use addresses and similar, very much like the U.S. or UK.
Oh, and a "cryopreservation" or whatever being installed- is hardly a news, "PR" worthy event IMO. Fancy name for a cold storage vat. I mean they're used in all kinds of medical facilities, they're used in a variety of other industries all the time and even common doctor's offices (skin docs, etc). I can probably pick a used one up on Ebay or at least a 2nd hand industrial equipment company- probably a few thousand bucks, tops.
And who is it they're "working with" in the S. African govt and "ministry of health"- who is that again? I missed their name, title, office, etc in that PR? Where was it listed again? Seems like every PR they issue for every country- claims they're gonna be "working with the minister of health" and some "govt official" to do blah, blah, blah. They just can never tell you who that is or what exactly they're "working on" exactly? Like that line is just cut n pasted verbatim from one PR to the next. I can get the other PR's- and show that exact line is in um, verbatim- just insert the other country name in place of "South Africa".
Just "PR" IMO, doesn't mean much to me.
What "financing"? Dilutive, toxic, convertible debt deals? They do um all the time- you'll be able to read about um in the next SEC 10-Q filing. Other than that, "financing"??
Number one item to read, IMO, on any new SEC 10-Q/10-K released by BHRT is the new, diluted share count. It was over 50 million shares just last qtr alone. It pretty much tells the main story IMO.
Oh- and please give the following:
1) The name(s) of exactly who in the S. African Govt Ministry of Health with which Bioheart is working with- their titles, office they're associated with, an email would be great too if you have it, since you're Bioheart of course.
2) Please explain why the PR announcement lists no contact information for this Dr. Walter Bell, but only is one sided and contains only Bioheart information? Where is the web site, the phone number, the address, etc for Dr. Walter Bell and the "new" facility? It must exist, correct? I may have a friend or someone in that part of the world and I want them to be able to contact Dr. Walter Bell and the "new" facility- please post that information ASAP.
Thank you, Bioheart
Please post the following for us:
1) The square footage and address of this facility
2) The annual revenues in U.S. dollars of this facility, presently
3) The total number of staff employed at this facility
4) The projected number of patients to be treated their annually- and which of Bioheart's FDA approved "treatments" will be used there, since Bioheart has no "approved" products to date.
Thank you.
51 MILLION is the entire population of South Africa. So, one is to "believe" that via opening a tiny, single operated, what's essentially a "doctor's office" - that they are going to be able to reach, let alone "treat" every single person living in the country? Really?
Look up the address of this new, "vast" facility- use Google maps. It's basically a "house" for the most part, on some side street. 51 million, eh? Sure. Right.
That's like saying, that because a "doctor's office" is now "open" in say Chicago, that they will now be "treating" the entire population of not only the massive city of Chicago, but will reach every resident of Illinois too. It's ridiculous IMO. Total penny PR IMO.
51 MILLION? Sure. Right. 1/6 the population of the entire U.S. via some "doctor's office clinic". Right on.
Looks like a little short covering to me- maybe Asher or similar, IMO. That's about it, more than likely.
Or, could still be a big boy unloading a block- when they got their shares, many as low as 1 cent or even 9/10ths of one cent, a sale in this price range is still nearly a double for them. Not bad money if you can make it.
Read the latest 10-Q's and last 10-K (yr end 2013), do the math on how many 10's of millions of common shares went out in the 1 cent to 1.5 cent range. Those can still be sold here for big, big profits and easy money IMO.
Short covering or a "big boy" unloading a block or two, IMO.
Blah, blah, blah- the stock price is STILL DOWN "only" 99.59% from its IPO date and ONLY down about 95% since Tomas took over as CEO.
Heck of a great investment IMO. Being "up" a supposed 150% from near zero- well....
Not sure how much that's worth? And how old are the major trials now, the ones that are going nowhere- the phase II/III? I need to check- it's been so many years?
Just sat for over one hour w/o a single trade.
Now it traded a bit, maybe $1K and they dropped both the bid and ask - to .0236 bid and .0237 on ask. The spread was like 9% just prior- with the ask at .0249.
Even dropping the bid or holding it low at like .0237 (below the 200 DMA) they can't seem to get any buyers lately?
Just nothing moving this right now. They appear to even be giving up on the high spread mode a lot of these days lately- which is real interesting IMO? Like no one is biting on the 7% or 9% spreads- it just goes into flat-line mode, so they finally drop it and tighten the spread?
I just wouldn't be surprised if this dumps off to sub 2 cents in here IMO, unless something major changes soon.