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"The company to me appears to be broke." Well, I would argue they not only "appear" to be broke, they pretty much by all definitions are broke and have been for some time. Their cash entry for over a yr of 10-Q/10-K's has been anywhere from zero on one 10-Q to $6K cash on the last to maybe about $170K or so I think on one I read in between that. Their only means of hanging on has been massive share selling/dumping in exchange for brutal financing terms. Meaning the financier gets 1) A STEEP discount to market on the shares they're given in exchange for some cash- like 40% to 60% or so from last couple 10-Qs and 2) Usually gets a "convertible note" attached which grants them rights to more shares and gives them incentive to short the stock, which they have obviously done several times, driving the price as low as a recent .063.
So yes, they are "broke" essentially and their auditor has put a "going concern" warning in each of the last 3 or more 10-Q's citing that BHRT has a high likelyhood at some point of being unable to service their debt interest payments, pay their day to day obligations, etc. Remember, Northstar was formed because BHRT had gone into default on a key loan (I think the Bank America loan) and then Northstar, this "odd-ball" (my opinion) sort of shell corp is formed and "assumes" the loan- which means to me they had to put up collateral, my guess being homes, businesses they own, land, property, etc. A bank doesn't just let someone "assume" a bad loan- you gotta put up something to show for guaranteeing it, at least in any business or real estate I've ever done. Further, Northstar has now been granted a "lien" on nearly everything BHRT owns, will ever own, ever create, etc. It's right there in the 10-K of last yr. So it creates a huge question to me- what do the common shareholders of this company really even "own" anyway? Further, they re-jiggled the prefer share count/grant to Northstar so that they appear to have a lock on always controlling the shareholder vote, forever. Meaning, even if the shares outstanding reached the new limit of 950 million or whatever that number is, ole Northstars preferred shares get like 20 votes to every one common share- and they'd always be running the show. Another thing I find "troubling" to say the least. I've never, in yrs of following public traded companies seen something like this Northstar insider "shell" thing set up. I can't even figure out the legality or means allowed to do it- as it appears to leave the common shareholders with little or nothing. From the read of that 10-K, it appears that BHRT could go belly-up tomorrow, and Northstar could walk away holding all rights to any patent, any trade knowledge, rights to all clinical trial data, etc and just start the whole thing right back up again- with the common shareholders getting wiped clean.
That's my "read" from the documents, you do your own due dilligence and good luck to ya. Buy, sell or hold.
"buys"' are OPTIONS ACQUIRED. No one has "bought" anything with their money. Learn to read the SEC documents. Options when exercised are "booked" as a "purchase" - especially for tax reasons. Big difference between getting options handed to you and implying the guy/gal took their own money and put it on the line and bought shares.
You are implying they "bought" those shares. WRONG. Those are options GIVEN TO THEM. Please learn the difference. Else, you're purposely trying to mislead people in my opinion. If you can prove any insider has used their own money to "buy" shares- provide the proof. People just posted links to the SEC forms yesterday- and ever last one of them was an 1) OPTION GRANT (free shares) or 2) Shares for a "debt-equity-swap", again, being GIVEN COMMON SHARES in exchange for apparently a past loan, or salary or other money owed them. Thanks. Lets stick to facts please.
Pepe, not sure if anyone has sold or not. That's hard to tell and may not show up until next SEC filing. That site you're pointing to just goes off of those SEC form 4 and other updates- they have no other way of knowing.
You do realize- a lot of people mistakenly read that link you posted and "think" the insiders have "bought" shares- as in using their own money. That's not the case. Those are shares "acquired" via option grants- i.e. free shares given to them. They are "booked" as if they were "acquired" or bought. Look at the share counts- they match the recent SEC filings of updates to option grants and shares given in the "debt-equity-swap".
Just a lot of people try and toss out the term that "insider's are buying" when they are not. Buying shares via putting up your own money versus getting options given to you are two, totally different things. You will see companies make PR announcements sometimes where it will say, "CEO XYZ just bought $1 million worth of shares in the company"- usually as a confidence builder. It's done a lot of time when a new CEO takes over and wants to show people he/she believes it's undervalued and that their turn-around plan is going to work and so forth. Share buy-backs by the companies themselves is also another technique. They try and bolster share price by using company cash to buy back their own shares on the open market and reduce the outstanding float/share count. As far as I know BHRT only dilutes and dilutes a LOT. I'm not aware from any documents of any BHRT insider putting up any of their own money to buy any shares. To the contrary - the insiders, especially Northstar are being PAID a lot of interest on past loans, via being given shares and all insiders are recently receiving a lot of options- that vested immediately, versus the traditional 3 to 4 yr vesting schedule. My opinion not much of a vote of confidence- seems like all the insiders want is to get paid, get paid first, get paid interest and more and what happens to the common shareholders doesn't rely matter- just being diluted away. Sharecount will be on page 1 of the next 10-K, it's the first thing I will read and compare to the count as of last 10-Q. Then the cash line on the balance sheet.
Andy, I ain't so sure about that? The volume was the key today, not just the size of the drop. It did over 11 Million shares. 11 million X .035 (figure avg price for the day) is about $385K bucks traded. That's some pretty sizable coin hangin out there. Not sure that's just Joe and Bob penny traders? I think we got some big insiders or institutional (raising cash for BHRT like in past 10-Q's) trades happening. This thing for months and months was lucky to trade about $15K to $30K at best on an average day, many days even less than that- days were it sat, flat lined half the day with zero buy or sells happening. Like maybe 10 guys tops, doing 10 trades of say $1,500 bucks each- what a penny player may dabble in, a lot of the time. But man, to hit $385K bucks or so for 2 days now on the sharp downside- I don't think that's all the retail, average seller. Just my gut feeling and 2 cents. If someone big unloads again tomorrow this can drop again like a rock in free fall. I didn't see any end in site today. Pretty much closed at the low on mega volume. I personally wouldn't be long here overnight and sleeping real good if I had much coin on the line. Plus, you got bag holders, new buyers who got in at .05 or .07 or whatever and many will have been holding out of "hope"- there's usually a "throw in the towel" day where they decide to cut their loss and just dump. They may all put in their sell orders tomorrow too. We'll see. Should be interesting. I'll be watching vol as much as price movement. If level II shows big sell orders sitting out there- then I think it's the big boys unloading into what strength is left. My 2 cents. Good luck. Buy, sell or hold. Gotta make that call yourself.
dog, sounds like a good play. Don't ever get too attached to hit the sell button- if you can book that much profit ,that to me is a win. Any trade at a profit is a good trade :) I think the volume today was amazing- still putting on huge volume while dropping like a boat anchor. I'm troubled by this violent a swing and the size of the volume- just seems to have more to it than a little ole penny stock making a swing up (just smells to me of an organized pump- who and how? Who the heck knows?). If it were to get down to a penny range again (which I think is very possible) and especially if it took one of those plunge days- where it hit what, like .063, I'd grab some for a potential flip. But this one is making me more and more nervous the more I read and that their cash is so low and they got loans up the ying-yang and all. You know how it works when a company like this goes belly up - there is zero warning. They just announce one day they're in default and it's lights out and the shares go to like .00001 in a blink. Been there, done that one and it hurts. I had one back in the day- man, they had PR going, talking bout all this and that, new contracts, woke up in the AM and it's over. Lights out. Got the shareholder class action letter from some law firm months later and tossed it - there's never anything left to get back. I learned big time on that one. Given the volume today- if you're gonna get out and book a profit, I agree do it sooner than later as right now there's at least some liquidity. Remember, it was only a week ago and the spreads were terrible. You could have bought and literally 2 minutes later couldn't get out a less than a 10% loss as the broker-dealers on these pennies can be brutal on the spread. When this exploded this 3 days on the up and now the down- at least it looks like the spreads got a little more realistic. Shoot- on a listed stock, it's a 1/16 penny spread. You can buy, change your mind 30 seconds later and get out on a fraction of a penny. I've watched BHRT and people put up any size larger than a few shares on the sell and they just sit, watch the bid price lower more- they sit, little more, still sitting, pretty soon the spread is like 10%. Ouch. 40% profit is nothing to sneeze at- I'd take it and be happy. It's in free fall in my opinion. I think it sees 2 cents real quick. Might be back at 1.5 cents or so in under a week. If it repeats today- it will hit about 2 cents by end of tomorrow. Again, the volume today told the real tale. Something's up- I don't think that's just all little guys selling. I think someone is unloading a boat load- meaning an insider, or an institutional (Asher or Gray or similar) doing "financing" for them via cash for shares for sale. Someone today said they saw a million shares up for sale several times on level II. That's about $30K or $40K or so at a pop- I don't think that's Joe penny flipper. Someone is unloading into this strength- my gut feeling. Good luck. I'm waiting- will see what 10-K says, what their cash survival looks like and how low we get, then consider another trade or not. Holding pattern here.
Well Andy, the way I read that document it jives with previous disclosure, including last 10-Q that they were going to "swap out" debt owed to them for share. But HOLY COW, they just gave the CEO 6 MILLION shares on 9/30/2013 at .014 each. And now they just ran it up to .08 a few months later? Lets say he could sell a big chunk of those into this strength and make .04 or .05 say a share, that'd be about $240K bucks. Not bad. What troubles me- is I can never discern from their documents (my opinion the financials/10-Q are a convoluted mess of loans on loans, loans "split" endlessly, etc) to know what was his original amount owed and how much interest has he been paid, if any and how much did they owe him back? In other words- exactly how much "debt" did he get swapped to get over 6 MILLION shares?
The other part of the document, Table II, bottom entry jives also with last 10-Q in that they granted themselves a boat load of options- but unlike typical options which vest over about 3 to 4 yrs before you can sell them- they gave um these as "instantly" vested. So he got 10 MILLION (HOLY SMOKES) share given to him then 400K shares more on 8/1 and 9/1/2013 and they were "vested" upon grant- which means he could sell away. Look at the volume this past week- wonder if he's unloading some of those 10 MILLION shares? Wow. Those were at .02. So he'd be "in the money" big time on this "strange" run-up in price, to say the least.
That's how I "read" it and what it says to me. By doing these "debt for common shares" so called "swaps" - hate to say it, but to me it says they're setting up to "get out". That's just my opinion. But if you had faith in the company- why not hold debt and get paid back interest and all your original principal? By going to common shares- it tells me they may want to SELL NOW, get what money they can and be ready to "bail out" as needed. That's just my opinion. But by going to common shares (which the Northstar guys did also)- and vesting them instantly, it says you can/will be able to see at will. Dump for cash anytime you want. Again, that's my take on it. I don't like the timing of a big spike/run up like this given they all just got gobs of shares inside of 5 or so months ago? They won't sell direct- like through E-trade or something. They have firms that will handle that "order flow" for um- and I've seen you guys and the other boards mentioning several broker-dealer/MM symbols showing up on the "ask" a lot lately with "large size" orders to sell being put on the tape- those MM/broker names when you look um up are all well known street names for handling "institutional clients", as in "insiders" who need to unload say 5 million or more shares. Oh well, we'll see I guess.
Sorry- my bad, I just re-read the guy's link/post again and the promotions were done in the past. So retraction on it necessarily happening this past week or so. It was not necessarily on this run-up. My bad- didn't notice the date. I guess the guy's point was they have used paid promotion many times in the past on similar run-ups. Guess the link in my first post was bad. I'll try it again. Again, this is from another, pretty reputable stem site I read- and the guy went in print, "on the record" that he has received many of these emails promoting BHRT over the past 3 yrs (that's the time period he states) and puts the disclosure info that the email contained. He stated he sees it as a "pattern" of repeated promotion, run up huge, then bust cycle. Which, if you look at about a 3 yr chart, is pretty much true. .01 to .05 and back several times over. He put this link:
https://www.stockpromoters.com/View-Stock-Promotions-By-Symbol.aspx?symbol=bhrt&ctl00%24ContentPlaceHolderyy%24Footer1%24Image2.x=0&ctl00%24ContentPlaceHolderyy%24Footer1%24Image2.y=0
And then he put this info about the email(s) he claims to have received, at least in the past. I guess his "beef" was that on previous huge pop/sell offs of BHRT he personally saw paid-promotion involved:
Compensation: ADVFN has been paid $5,000 (Five Thousand Dollars) by CCWW LLC for THE distribution of this email AND other advertisements
Promoter: Penny Trader Publisher
Compensation: PennyTrader and affiliates have received five thousand dollars from a third party (G6 Stocks, LLC) for this one-day SRPX email promotion.
Wow, the management of this company sure has a lot of "outside" shall we say "interests" it seems. How much do you guys really know about them? The more I research, the more it troubles me. Just got this off another well respected stem cell investor site.
http://www.bizjournals.com/southflorida/stories/2010/09/20/daily51.html?page=all
That seems like a little bit of a "tangled" web for the CEO? It's confusing and a bit disconcerting to say the least IMO?
Also, this- which ties in with what I posted in the AM about how Comella can be doing so many things all at once- as in being the "chief science" officer over-seeing multiple "trials" including an FDA level, I guess phase II/III which is daunting in itself but is also the CEO of "Stemlogix"- but she sure is into a lot of stuff? How can 4 or 5 people with very little cash ($6K total) as of last 10-Q really do all this? How?
This is what the other investor/poster found from his research- it's his summary:
Fun facts and opinions with 30 minutes of research:
At September 30, 2013, we had cash and cash equivalents totaling $6,684
Working capital deficit as of such date was approximately $13.4 million
One of the two management is clearly not focusing 100% at BHRT. Kristin Comella is currently the CEO of Stemlogix, CSO of Ageless Regenerative Institute, and CSO of Bioheart
Conducting trials in countries where the market isn't favorable (Uganda, Azerbaijan, etc.)
Constant pump and dump trend the past three years around this period. Constantly paying and wasting money on stock promoters https://www.stockpromoters.com/View-...1%24Image2.y=0
Were you all aware they just paid $5K for a email promotion right before this big up move? Wow? It involved an email "blast" campaign and more? People on the other site received these emails and the financial disclosure, I guess is right at the bottom of every email- saying who and how much was paid for the "penny promotion". And then- shazam, the prize like doubles or triples over night and now massive, high volume selling into the strength? Very troubling to me, IMHO.
That's more than I ever knew- and I've been digging pretty deep to try and figure out this stock price violent movements and more. The paid promotions are shall we say "interesting" to say the least. That is traditionally known as a pump-n-dump if I'm not mistaken. Wow.
But dubb, why would they even be back at doing a Phase I called "Angel" when they supposedly have a phase II/III underway that have gone really nowhere? Marvel died on the vine and has been unfunded/dead since what, 2009? Mirror is just sitting idle or going painstakingly slow it seems- one patient "enrolled" as of last update. Even "Angel" was originally stated/promised as going to be taking place on U.S. soil in I think U. Miami (I can find it in PR and 10-Q) but then it ends up in Mexico with little to no explanation and was named "lipi-something" orginaly and then got suddenly re-named to "Adipo-whatever" all of a sudden? You don't find any of that the least bit maybe "troubling" or at least want to ask some questions? To me- they were pushing hard that Myocell and FDA approval and all was their end game. Suddenly it just fades and we get endless PR now about all kinds of medical "tourism" stuff (my wording- best way I can think to describe it) and then all these, IMHO odd-ball "deals" and "partnerships" in who the heck knows what 3rd world country or with some vague "group" that appears to be nothing more than a few guys with a website (sorta like Stemlogix to me) - it's that Global Stem Cell whatever, saying they own 6 sub companies and "Arrange" what appears to be off-shore "treatment" trips and other stuff, with hokey (my opinion) videos on their web site and U-tube. I mean come on- I watched a few of their videos and they were comical to say the least. I mean what happened - it went from what appeared to be a serious, phase III potentially, FDA style company to now spread all over creation and a shmattering of "stuff" that how can they possibly manage with 4 or 5 people or whatever they have? Just the one FDA trial it would seem to me would take every waking moment of every single day just to "try" and manage? What are we missing here?
Appreciate the links, will read them when I get time later today. But dubb, unless I'm mistaken, current case law of the FDA/courts has ruled pretty clearly that Stem Cells and are to be treated/regulated as "drugs"? That's my understanding to date following several key court rulings. Here is a few references- I mean the FDA went to the mat and court on this issue:
http://www.the-scientist.com/?articles.view/articleNo/39108/title/Judges-Side-with-FDA-on-Stem-Cells/
http://www.fda.gov/forconsumers/consumerupdates/ucm286155.htm
Notice too please from the FDA's own site- as of today, there is ONE, ONE FDA "approved" stem cell "treatment" and it isn't anything remotely close to what BHRT is working on. ONE approval to date. So all these so called "treatments" and "procedures" being battered around in PR and blogs and what not are either 1) Must be, being done in off-shore locations or 2) Can only be, being done in "clinical" trial setting with strict FDA protocols filed and oversite.
That's my understanding to date.
Heaven, it sure ain't a pretty looking chart to say the least. But I'm not surprised. I mean, "normal", healthy stocks just don't go up like 50% or more a day for a few days based largely on nothing (no big partner like google saying they're taking a 30% stake in company XYZ) or no real news like, "Our new widget-magic product just got the prelim one yr sales numbers and we can't make product or keep it on the shelf fast enough" or of course in the field of bio/pharma the GOLDEN GOOSE would be an FDA APPROVAL, but this company is miles and yrs away from even that possibility IMHO. A final FDA approval is one of the most daunting and coveted things to ever be achieved- and about 1 to 2% of new drugs/invasive major products ever achieves it. That's an easily verifiable stat doing some simple google searching. It's EXPENSIVE as heck, often running min of several hundred $million dollars and sometimes as high as one $Billion dollars to get a product through the FDA final trials, submission, etc. A typical FDA final submit can run 100 THOUSAND pages- I was stunned when I first read that. It's staggering to even think about. I mean, is the tax code even that many pages? You can imagine the staff, expertise it takes to write/compile a tomb like that. That's why big pharma and others have entire staffs (40 to 100 full time) on a single product line would not be unusual in the slightest- Ph.D's, regulatory specialists, engineers from various areas of expertise, bio-med Masters or Ph.D holders, usually several M.D. or university level researchers, etc. It's daunting to say the least and expensive and timely as all get out. It's why major pharma and others worry so much about having a "deep" and full "pipeline" of drug or med candidate products. They know that only say 5 out of 100 will ever see the light of day at the other end of the gauntlet. Of those, they "hope" they hit it big with one blockbuster. It takes one Lipitor for every 100 "duds" they have. Or it takes one new "stent" (recent is a drug coated stent) to be on patent and keep a company alive for the next 10 yrs and fund all the next R&D off their big seller- Abbott, Guidant, etc. Bio-med is one of the toughest fields of tech to play in- it's brutal and for the big-boy-pants players for sure. Little guys can get crushed like a bug from big players with deep pockets- it's the sad, but true reality of the field. MONEY, cold hard cash, and lots of it is key item number one. At this point, my opinion is that's BHRT's biggest problem. You can have the greatest potential idea/widget in the world- but if you can't attract capital, and in bio-med, boat loads of it, you're usually done. BHRT's capital seems to be drying up. Their cash position on the last few SEC reports has been dismal. Not sure how they make it down the gauntlet at this point?
Well, if you sold at the .06 to .08 level cj, then ya done good. Sadly, I'm sure you realize that as you were selling, some new buyer was stepping in and buying at those levels. Some of those buyers are probably very amateur and get paralyzed with fear to hit the sell button and take the loss and are now staring at a glaring, 50% or more loss in a blink of an eye. They're holding and "hoping" it's suddenly gonna bounce up and get them out. Sadly, that's almost never the case. Last time this stock did this, some people sat for a yr to two yr's "hoping" to ever break even again. Too bad it's not monopoly money people are using- the losses are real and they hurt bad when you take um. Good job on "reading the tea" leaves if you got out at those levels. That was good trading for sure. To you trade on any technicals or charts or similar or was it just a "gut" feeling to sell and take profit? Thanks.
Joeg, at this rate of daily decline it's only a few days away to be back about the 2 cent range, where it spent a lot of time in the past yr. Doesn't anyone else find it "troubling" that the stock doubles or basically triples, then crashes back almost as fast? I don't find that a sign of a "healthy" stock or strong company IMO. It speaks of nothing but a mo-mo play or I hate to use the word, a "pump" of some kind. I believe the selling you're seeing now is all the poor people who got caught buying at .06 or .07 or .08 now getting hit in the face with reality and they throw in the towel and decide to cut their losses and run. It's a familiar pattern in what is traditionally known as a pump-n-dump cycle, some other people on I-HUB have actually done pretty extensive, entire pages on the topic, including with video and charts and showing the up pattern then the selling just as we are seeing now. I just read the one guy's I-HUB page called, "The anatomy of a pump n dump"- and he puts out a pretty credible explanation and backs it with trading experience and videos of charts, volume, etc. Notice- the volume is falling off sharply now each day.
Also, you mention the 10-K "might" mention "significant" revenues possibly coming in? Curious- where do you think BHRT might be generating "significant" revenue from at this point? How much are you thinking this revenue might be and from where? I thought the Mirror trial is their big push, although they seem silent about it- only a yr ago it seemed to be their 100% focus, to become an FDA approved product company? But now they barely speak about it or the trial and little of what money they do have seems to go to the R&D line when I read the 10-Q? So where would they have suddenly started getting "revenue" from? They have about $6 Thousand in cash left listed in the last 10-Q? Any thoughts are appreciated. Thanks.
GS, again- your statement about "patents not mattering" runs counter to everything we know about industry and companies- and I'd say ESPECIALLY any med, bio-med, pharma type company. I'd challenge you to point out any major company in that field that does not aggressively patent everything they do as product development and then rigorously defend them. I have no idea what "biologics 12 yr" supposed exclusive "law" you're talking about- post links to it and exact language of supposed "law" please. Also, everything you state goes counter to what BHRT put in it's own 10-K. THEY, THEY make/made the statement that Myocell having no patent/being OFF patent could/might be detrimental:
"Our MyoCell product candidate is no longer protected by patents, WHICH MEANS that competitors will be free to sell products that incorporate the same or similar technologies that are used in MyoCell without infringing our patent rights. As a result, MyoCell, if approved for use, MAY BE VULNERABLE to competition in the form of products that use the same or similar technologies. We have previously licenses certain patents and patent applications relating to our MyoCell product candidate"
See that specific word they used, "vulnerable"- that means "weak" or "open to attack", etc. Look it up in a dictionary. So I guess old BHRT doesn't know about this special "law" you claim to know about? Cause why else would they put that legal disclosure in their 10-K, dated March 31, 2013? Why? And use that specific language that BECAUSE OF NO PATENT, competition may be a serious factor in the future? Explain please?
Hybrid asked about IPO? I found this stock researcher's "take" very interesting- especially the part at the end where he shows all the interconnect "family" business relations. Found that very interesting. Read it for what it's worth- I think the guy is a pretty credible stock/company commentator - and this is back from 2008, the period that Hybrid was asking about.
http://10qdetective.blogspot.com/2008/06/bioheart-too-early-to-inject-hope-into.html
This is from HIS words/write-up at the end of the piece: "Corporate Governance
Florida’s unemployment rate for April 2008 was 4.9 percent, standing at its highest level since February 2004. Irrespective of the economic slowdown, BioHeart takes care of family.
Mr. Spencer, III, a member of the Board, is the father of Mr. Spencer, IV, Vice President of Clinical Affairs and Physician Relations.
Mr. Leonhardt, Executive Chairman and Chief Technology Officer, is the cousin of Scott Bromley, Vice President of Public Relations, and the brother-in-law of Ms. Sulawske-Guck, Vice President of Administration and Human Resources.
The Company, from time to time, enters into consulting agreements and arrangements with certain members of its Board of Directors, too:
BioHeart paid to Ascent Medical Technology Fund, an affiliate of 'independent' Director, Peggy Farley, Chairperson of the Governance & Nominating committee, a fee of $150,000 for the private placement of common stock in May 2007.
Mr. Leonhardt has guaranteed Dr. Murphy, a director, the repayment of his initial $200,000 investment in the Company, too!"
Editor David J. Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy."
Found that pretty interesting reading. Just my opinion- you can take it or leave it. But to me, very interesting. Maybe it tells a little bit about why the IPO went like it did? I don't know? Due diligence on your own. I just like to research, read everything I can find on a company that interests me.
Comella and Stemlogix- do any of you ever "investigate" even in a cursory manner things like "PR" statements and "claims" made via the company or posters? I know I like to. I do it for every company I'm interested in. If company XYZ makes a public announcement that they've got the best "world saving widget" on the planet and are therefor the "world leader" (a term I see used here and via BHRT often)- I mean I'm gonna do some checking. So they've mentioned Stemlogix in the past. They also list about 4 employees for BHRT as of last 10-Q, yet say they are doing multiple trials and lots of "deals" and man, all kinds of stuff. It sorta interests me as to how so few people can accomplish so much work? I mean do they ever sleep or are they super human? So then "Stemlogix" comes up - as somehow "affiliated" I guess with BHRT. I do a simple web search and up comes their web site in position one on google. Great- I start reading. It boasts of them being "leaders" in the field. It states the following, "Corporate Mission
Our mission is to define, standardize and advance the field of veterinary regenerative medicine by offering the highest quality technology, training and research.
Premier In-Clinic Stem Cell Therapy Solutions for Veterinary Medicine
After many years of research, Stemlogix has now made it possible to provide affordable same-day stem cell therapy to dogs, cats & horses suffering from a variety of degenerative diseases and injuries. With the Stemlogix in-clinic stem cell isolation process, veterinarians can extract fat tissue, isolate millions of regenerative stem cells and deliver them back to the patient all in about 90 minutes…in just one office visit!"
You say, WOW. OK. Now it also says, "Kristin Comella
Ms. Comella is currently serving as co-founder and CEO of Stemlogix, LLC and has extensive experience in stem cell field. Ms. Comella has over 12 years’ experience in corporate entities with expertise in regenerative medicine, training and education, research, product development, and senior management. Ms. Comella has been a member of the Bioheart Inc. senior management team since 2004 and is currently serving as the Chief Scientific Officer. Bioheart is a publically traded company focusing on the discovery, development and commercialization of autologous cell therapies for the treatment of chronic and acute heart damage and peripheral vascular disease. Ms. Comella was appointed as Bioheart’s Vice President of R&D and Corporate Development in December 2008. Since joining Bioheart in September 2004, she has played a major role in managing the product development, manufacturing and quality systems. In addition, Ms. Comella is currently and actively serving on multiple boards in the stem cell arena. She is co-founder and Chief Scientific Officer of the Ageless Regenerative Institute. The Ageless and Stemlogix Programs involve education, training, technology and support in delivering regenerative medicine to clinicians and veterinarians. Ms. Comella has over ten years of cell culturing experience including building and managing the stem cell laboratory at Tulane University's Center for Gene Therapy. She also developed stem cell therapies for osteoarthritis at Osiris Therapeutics. Ms. Comella holds an M.S. in Chemical Engineering from The Ohio State University and a B.S. in Chemical Engineering from the University of South Florida."
So you're like WOW, so - in addition to being the "Chief science" officer listed at BHRT, she's also doing all this at Stemlogix, is the CEO? WOW, that's like amazing for one person- again, does she sleep? And then you search the Stemlogix site some more- you know, it's being "world class" and doing "research" and all and you figure- wow, where is this great "facility"? Well, on the web site are listed two addresses that when you plug um into google- they are RESIDENTIAL HOMES, and I believe one is even for sale or just sold on Zillow or whatever real estate sites pop up? As in what I "guess" is Ms Commellas or some Stemlogix owner's home for sale is the "world leader headquarters"? Getting the picture how some things turn out to be a bit "troubling" to say the least? How a "web site" and a "PR" can sound like a lot, make you seem like a "big company" and all- but are you really? I find it "troubling" in my opinion. 1640 Sweetgum Terrace Weston, FL 33327 is listed on the Stemlogix "contact" page- but it sure looks like a residential house to me? Also listed is 1310 Leeward Way, Weston, FL 33327, again it comes up as a house, that one for sale/sold I think on Zillow?? So how do you, per that mission statement above "conduct research" and have "labs" for animals and all kinds of amazing "business operations", especially involving "extensive animal research" in a residential house? Just asking? If anyone knows- help out here? This is the age of the internet- a "web site" can sure show some fancy pictures of animals and talk about "world class research" or whatever- but does all that really take place in someone's home with a few people as the entire "company"? Really? I personally would find that pretty amazing- but maybe that's just me? Due diligence - do it for yourself. That's what my simple google searches showed when my curiosity was peaked. One person doing "trials" all over, doing "research" and also running this "animal stem cell biz" as CEO and a whole bunch of other stuff listed in past PR's, wow, I'm am truly impressed if that can all be handled by one person and some of it out of a house? Must be doing better than a lot of smart people and big companies I know and am familiar with? Oh well. Good luck.
Hi doglover- I don't "hope" about reports one way or another. They are what they are. I just read um to get the facts and try and discern the health/condition of the company the best I can. In the end- those SEC reports, the "set of financials" are the single most important thing you have to go on when deciding to buy, sell or hold. You think Warren Buffet doesn't read/know EVERY last detail of the financials of any company he invests in? It's all he cares about- he's a guy that can read a set of financials and understand a business better than anyone alive. He looks also at brand, marketing, the management (one of his keys- does he think the mgt is skilled) but in the end he looks as the "books" and wants to know if the company is going to make money and usually pay a dividend. I not sure he ever buys anything that does not pay a dividend- meaning returns cash/profits back to the shareholders, as over the long run, that's one of the single greatest ways to grow wealth ever invented. A consistently growing dividend has made Buffet a very wealthy man. Do I "hope" anything about the coming 10-K? I could care less one way or another- it's gonna say what it's gonna say. What I need to decide is to I 1) Trust it (audited, credible) and 2) What picture does it paint for the company to even survive, let alone thrive 3) Does it show something new from the past 10-Q for example, at which point the financials were pretty dire IMHO and that of the auditor's statement. I'll also look at the share count- as the common holders are pretty much being diluted away. I'd also like to see what's said about Northstar- a very odd entity in my opinion. They have more or less as far as I can read/discern, been handed pretty much everything BHRT has or will have and own it all- I can site the page number of last 10-Q, they've been given a "lien" on pretty much everything- property, intellectual property current and future, rights to everything. Which to me is pretty troubling- cause it leaves me asking, "What the heck do you actually own as a common shareholder?" It appears like it's being set-up that if the whole thing goes bust, Northstar owns it all anyway, can pick it all up, walk away and just start over under a new ticker or something and the common holders would be wiped. I'm not saying I totally understand it- but that's my read so far. I'm still trying to decipher it. Never seen anything like it in following public traded companies- sort of an odd-ball "shell" company is set up for the insiders, everything is signed over to them since they "assumed" a key loan that was in default, now they're getting interest paid to them- it's really an odd-ball deal to me. Here, here's the verbiage about the "lien" from the last 10-Q. Note the line about PERPETUITY- that means FOREVER. Not "maybe" forever- but forever. From the last 10-Q: Page 16-
On October 1, 2012, the Company and Northstar entered into a limited waiver and forbearance agreement whereby the Company agreed to issue 5,000,000 shares of Series A Convertible Preferred Stock and 10,000,000 of common stock in exchange for $210,000 as payment towards outstanding debt, default interest, penalties, professional fees outstanding and due Northstar. In addition, the Company executed a security agreement granting Northstar a LIEN ON ALL patents, patent applications, trademarks, service marks, copyrights and intellectual property rights of any nature, as well as the results of all clinical trials, know-how for preparing Myoblasts, old and new clinical data, existing approved trials, all right and title to Myoblasts, clinical trial protocols and other property rights.
In addition, the Company granted Northstar a PERPETUAL license on products as described for resale, relicensing and commercialization outside the United States. In connection with the granted license, Northstar shall pay the Company a royalty of up to 8% on revenues generated.
Effective October 1, 2012, the effective interest rate will be 12.85% per annum. The parties agreed, as of February 28, 2013, to reduce the interest rate to 7% per annum (see Note 14 below).
SO WHAT THE HECK DO THE COMMON SHAREHOLDERS OWN? I don't get it? They even own all "right" to even future trials ,results of any clinical trials- never seen anything like it in my life? Not sure how a company can even do such a thing? Further, they've made sure that they've given Northstar enough preferred shares that carry like 20 votes each- that Northstar would/will always have a dominant shareholder vote. That SEC doc was filed not too long ago- it lists Northstar getting an increase in preferred shares and the vote equivalent of each share. You do the math and they'd always be able to out vote the common share holder even when the 950 MILLION new share limit (whatever the exact number is) when/if they reach it.
Very troubling to me. The report- I just read it and try and understand it and try and figure out what the "plan" is for this company and what the heck they are trying to do and if it's worth a risk or not. I also will be looking for all the past PR's and "blogs" stuff- to see if any of it even gets a passing mention in the 10-K. Many times in the past, I've read BHRT put out a PR, I then look for that "new trial" or "new partnership" they announced- but I've never found most of um mentioned later when the big SEC documents are filed. I also find that troubling. All only my opinions from the way I read it/understand it or maybe don't understand it, the documents. Anyone else has to, must do their own due diligence and decide to buy, hold, sell or whatever. Good luck to ya.
I don't know- why did they do an IPO? My opinion- they never should have gone public. Going "public" is reserved for the stratosphere of companies- it's a tremendous undertaking and only for top tier businesses to even attempt normally. BHRT's IPO is literally one of the worse to have ever been done in IPO history- they netted about $1.5 MILLION on about $5 million sold. It was pitched as going to raise something like $70 MILLION. Their mgt was in many people's opinion "bush league" and the company was not up to IPO standards and was thus panned on the road show and subsequent offering. You can read a great deal of commentary about it from a simple web search. A simple web search will also reveal that most companies should never "go public" - it's just too daunting. Most that do it and fail - do it "thinking" it's a road to easy riches for insiders. Take it "public" - raise a bunch of cash, cash out your options after the lock-up period and sale off into the sunset. Problem is- it almost never works out like that. Facebook- yes. But they were well connected/funded by some of the top-tier venture houses before ever even remotely coming close to an IPO, they had the "who's who" of venture people behind um from San Hill Rd as it's known in the "Valley". Why did they go public? You tell me and us? I don't know? I just know it was an IPO failure for the history books.
http://venturebeat.com/2008/02/20/bioheart-a-new-record-for-ipo-futility/
http://www.fiercebiotech.com/story/spotlight-bioheart-stumbles-out-of-the-ipo-gate/2008-02-20
http://dealbook.nytimes.com/2007/10/15/bioheart-cuts-ipo-price/?_php=true&_type=blogs&_r=0
That one's a good one- wanted $46 mil, then $20 something mil, then ended up "net" about $1.5 mil. Not a good IPO, probably one of the worst ever. There's a site that lists the biggest IPO busts- I can find it, and BHRT is right there in the running.
Here it made the BOTTOM of the IPO list for 2008
http://www.marketfolly.com/2009/01/how-some-2008-ipos-fared.html
Here's another list- even though 2008 was a "tough" yr for IPOS, still, most raised at least $100 MILLION or more. BHRT, raised about $5 MILLION with only about $1.5 MILLION net- and that was AFTER Howard L. picked up some of the shares himself- it would have been even worse. Again, this list puts BHRT as the worst performer.
http://www.tradersnarrative.com/severe-ipo-drought-is-actually-extremely-bullish-1635.html
I could list more info. But your question was why did they go "public" in 08 when one of their key patents was expiring? I don't know- you tell me? Maybe that's part of why their IPO was pretty much a total bust. Your premise and that of the other poster that somehow PATENTS DO NOT MATTER or that patents in one field (google or amazon for instance) are "different" than biologic/pharma patents, is in my opinion ludicrous. A PATENT is a PATENT- and ALL bio-tech and pharma companies pursue them VIGOROUSLY FOR A REASON and then defend them to the ends of the earth for the same reason- patents = MONEY. Why do you think drug companies panic when a big seller is about to come "off patent" and go generic, if as according to your "theory" those pesky patents don't mean much anyway? You make no sense with your "theories". Many companies that went "public" - are actually even taken back "private" as they realize public is a mistake. It's actually very in vogue and popular to do now days. DELL was just taken private. Best Buy is considering it. Seagate at one point was taken private and then re-tooled and went public again later- the biggest maker of disc drives in the world. I can name dozens more. Why did BHRT go "public"? I HAVE NO IDEA.
PATENTS DON'T MATTER MUCH? Huh? Companies like Apple, Merck, Google, Amazon- pick um spend $10's of MILLION on patents and defend them to the ends of the earth cause they "don't matter"? REALLY?
From the last BHRT 10-K filed on March , 2013. Page 16 quoting:
Patents and Proprietary Rights
We hold limited patent rights in our product candidates. Our MyoCath product candidate is protected by a patent, expiring in September 2017, in which we have an irrevocable co-exclusive license. Our MYOCELL PRODUCT CANDIDATE IS NO LONGER PROTECTED BY PATENTS, which means that competitors will be free to sell products that incorporate the same or similar technologies that are used in MyoCell without infringing our patent rights. AS A RESULT, MYOCELL, IF APPROVED FOR USE, MAY BE VULNERABLE TO COMPETITION IN THE FORM OF PRODUCTS THAT USE THE SAME OR SIMILAR TECHNOLOGIES. We have previously licenses certain patents and patent applications relating to our MyoCell product candidate.
End quote.
Myocell is supposedly THE BIG ONE- the ole "FDA TRIAL" and all. And guess what- THEY DO NOT EVEN HOLD PATENT ON IT ANYMORE. Yep. Read the statement above- if, even "if" and that's a BIG "if" - it states right there, that they may never commercially monetize it or make money off it as it could be RIPPED OFF FREELY (paraphrasing) the "vulnerable to competition" disclosure. Yeah- ALL those companies out in the world don't pursue pesky patents- cause you know, they don't really matter? Watch SHARK TANK- one of the FIRST QUESTIONS those centi-millionaire and BILLIONAIRE investors ask a person when they get a little interest in their product they're pitching is, "DO YOU HAVE PATENT PROTECTION ON IT". Several have said "no" and it was DEAL OVER. Ole "Mr. Wonderful" told um, "WHY would I sink a dime in this- when the day we get any sales of any amount, it will be knocked off in about 5 minutes by a major player with deep pockets?".
Sorry- PATENTS MATTER and MATTER HUGE. HUGE. It's the backbone of American and developed World technology development and sales.
Most RECENT 10-Q BALANCE SHEET: Assets versus liabilities, Sept 30, 2013 page 4, "Condensed Balance Sheet":
TOTAL ASSETS line entry: $70,733 (and yes, that's in dollars, NOT $1000's as is typical
TOTAL CURRENT (note CURRENT) LIABILITIES line entry: $13,440,362
TOTAL STOCKHOLDER'S DEFICIT line entry: ($13,650,667)
Notice the parenthesis, that means it's a NEGATIVE NUMBER as in DEBT OWED. They have NO net "assets" and compare it to the market cap.
CASH BALANCE, CASH AND CASH EQUIVALENTS ine entry same balance sheet: $6,684. Yep, SIX THOUSAND CASH against over $13 MILLION in current liabilities. I keep more than $6K cash on hand, meaning liquid just to run my household. For a public traded company to have that little cash is essentially broke. About as broke as it gets.
Further, you cited a bunch of office furniture, lab gear or whatever- in a fire sale, that stuff is usually worth next to NOTHING. Those "asset values" are carried "on the books" based on their purchase price and depreciation schedule. Good luck having a parking lot sale and trying to sell that stuff off for 50 cents on the dollar. They have essentially NO ASSETS or very little- they "might" scrape what, a $100K together if some close-out buyer guy/company came in and bought it all. I've seen a BK company before and the "liquidation" phase- those buyers usually pay pennies on the dollar for used office furniture, lab gear, etc. By contrast- Apple for example is so valuable because they own intellectual property- a patent catalog worth a King's fortune. They also own large "campuses" of real estate in some of the wealthiest area of CA. Chevron owns oil field leases, oil reserves etc. A pharma company like Merck owns a drug portfolio, again patents and intellectual property plus factories and buildings, etc. Also, all those companies have enormous amounts of cold, hard cash on their books- meaning they have a "current ratio" of being able to easily pay their bills, and they also "throw off" large amounts of current cash on a daily, monthly basis from operations. That is how "assets" versus "debt" works and what BK means- CAN YOU PAY YOUR OBLIGATIONS TODAY with cash on hand. You see it happen all the time to sports or Hollywood figures or rock stars. They are technically BK as they can't meet their current bill load as they've over-built their lavish lifestyles. They then have to 1) Liquidate resources to pay creditors and 2) Get projects or go on a road tour to boost cash income and 3) Down scale their spending to come in line with their current income- which often drops off sharply as they age, but they never change their lifestyle. They are often "asset rich" but "cash poor". Unfortunately- BHRT is both, they are cash poor and asset poor- other than being public and being able to dump shares, they'd already be gone. But even the share dumping game can only play out for so long. The share count outstanding gets huge, the price collapses as it has (4.5 pennies to as low as 1 penny) and the people willing to give you cash-for-shares demand more and more onerous, horrible terms as their risk of getting paid back gets worse and worse the more your shares become worthless or near worthless. That's it in a nut shell IMHO. Their financial condition is horrible and about as desperate as a company can face- their auditors have said as much. I don't know how you can dispute that.
I didn't " interpret " anything. The document was filed for the very reason they did a "debt for equity swap". Table 1, box 1 of SEC document you cited, "Common Stock Conversion of debt to equity", 9/30/2013 he received 8,771,929 shares of stock. 8 MILLION shares as repayment or replacement for debt the company owed/owes him at .014 per share. It is usually preferred to be a debt (bond) holder as you are in "first position" and secured in the event of default. Bond holders ALWAYS get paid back first if a company is in financial trouble or goes to BK- you can read of enormous BK cases where the bond/debt holders at least got say, 20 cents on the dollar where as a common stock holder gets zip, nothing. My guess, only a guess- is that the debt in this case is unsecured as BHRT essentially has little to no assets (no factory, machines, buildings, factored sales, receivables, etc intellectual property would be worth who knows what if anything- most patents they have are expired)- so my guess and just my opinion is these guys, and several of them just did it, took shares and are/did hoped to sell into any strength like the recent run up and cash out for what they could get. We'll see later when they update the share holding numbers and debt owed, etc. Just my 2 cents- but that's the way I see it. If he was "long" and strong the company- then why be trying to unload shares and get out? Yes, sometimes people for personal reasons need the money, etc- but they just set it up for most of the insiders to be able to cash out a lot of shares and options recently- including some large block grants that vested immediately. That to me is not much "faith" in your company. That, IMHO is a way to cash out ASAP and get some money. But hey, that's just my "read" on it- you can see it any way you want.
Hi Andy, I would partially agree that of course thee most recent 10-K or 10-Q is the most "relevant" as they tend to paint a "time-line" of sorts and the more recent the info, of course the better. So, yes I believe you are partially correct ans we should carefully read this new 10-K, cover to cover and look for key info, new things like share count, cash balance, any "financing" done as in new cash-for-shares with "convertible" options (not good normally). Regarding the "blog"- my problem has been, in the past there is often a LOT of "stuff" put out in the "blog" and "PR" and similar- but then when I search for it in the SEC documents- to me, the one's that really matter as they are legally binding, audited, etc- many times I find NO MENTION of much of what has been put out in even recent "PR" or say the "blog". We'll see- will look through the 10-K when it comes out and lets see what's in there. If you find what you think what is pertinent or "exciting" info in the 10-K, by all means post and share it please- give us the page number so we can all read it. Similarly- I know the first things I will check are the cash balance position, the debt situation, the new outstanding share count and a few other key indicators I think are critical- including if the auditor still has a "going concern" warning and what they list as the present debt obligations in that "going concern" statement. Good luck.
Great. You link to a SEC filing doc- which is as it should be for factual info. Do you know what it means? He did a debt for equity swap for one, meaning he's unloading debt for being given common shares. Normally, a person prefers to be a debt (bond) holder as they are in "first position" to be paid back if a company defaults. To me- swapping out debt for shares says you probably have little faith in the company ever having cash to pay you back so your'll willing to take shares in the "hope" of being able to unload them on the market and get at least "some" cash back. Other than that it shows he's been given a lot of options (share grants) and some warrants. If you look in box 5-D it shows he actually "disposed" (that would mean SOLD I believe) a sizable chunk of shares unless I'm reading it wrong. He hasn't "bought" as in used his own money - any shares that I can see from that document? What's your point?
A while back- give me a little while please and I'll give you the exact 10-Q and date, BHRT blew through their then, allotment of about 200 MILLION shares. They have been dumping shares to all sorts of people for 1) Cash 2) To pay Northstar back continually in the form of interest owed, sometimes a principal payment and so forth. So via the stroke of a pen- the BOD re-authorized to increase the outstanding shares available to almost ONE BILLION (I think about 950 MILLION or something like that). Since that time, they have already gone from 200 MILLION shares to as of last 10-Q about 350 MILLION shares already used and my guess by this next 10-K due any time now- it will be well North of 400 MILLION shares already dished out. Again, I've got things going on, but will come back and give the exact 10-Q pages, verbiage, etc. Just so you know, page one of each 10-Q, near the bottom lists the present shares outstanding. But down deeper in the document- you'll find where they explain the share allocation being upped, etc. You should also know- that they at the same time gave Northstar a big increase in preferred shares with special voting rights- so as to insure that Northstar (insiders) maintain 100% voting control rights over the common shareholder. Again, will be happy to list that document later. It effectively states how many preferred shares Northstar were given/increased and how each preferred carries like 20 votes or something to each common share-when you do the math you will see that it insures that anything ever put to a shareholder vote (which they NEVER do to my knowledge) would ALWAYS be out-voted by the insiders of the company. Not very good in my opinion.
"I never stated he was a new investor, although he did recently add BHRT shares, which was made public back in December."? Where? By "add shares" you're "trying" to imply he bought those shares? Prove it please. There was an OPTION GRANT and they also swapped some equity for debt (ie GIVEN SHARES to be able to sell in lieu of cash payments- as BHRT has no cash to pay them back). Show otherwise please. Site document and verbiage and dates, etc.
" Per the last SEC filing he purchased more shares"? NO. WRONG. You need to learn how to read a SEC statement. They were GIVEN OPTIONS my friend- they didn't "buy" or "purchase" anything. An option grant is booked as "shared acquired". You claim the insiders have been (as in recently) buying and "investing". NOT TRUE. All indications from all recent 10-Q/10-K going back at least 1 to 2 yrs is that they've been GETTING PAID BACK on their original investment, WITH INTEREST. They are getting "paid back" via LARGE blocks of shares being handed to them, near continually. Also, they recently, with the stroke of a pen "re-priced" past option grants so as to put them "in the money" or "near in the money". I don't have time at the moment- but I'll be happy to give 10-Q and exact page numbers and word for word. Also, they recently granted LARGE BLOCKS of options to the few key employees (2) and the board and Northstar guys- and they made um to VEST IMMEDIATELY. That's a technique used to HAND PEOPLE MONEY typically and get them pay back for loans and similar. Normal option grants vest over time- usually at least 3 yrs or more and vest in percentages each yr before you can sell a single share. That's so as to be an incentive to keep key people long term and make them perform by growing the value of the company. To vest them instantly is a sign to allow them to GET OUT ASAP and dump shares rapidly. It appears you don't know much about how options work and are granted, etc. Further, they also recently, via the stroke of a pen (no common share holder vote or similar) they granted Northstar more preferred shares, EXACTLY ENOUGH to insure that they and they alone control all voting rights above and beyond the common shareholders- again, will be happy to site the SEC doc w/ page number and even cut n paste the text for you. Further, Northstar has been granted a license and rights to nearly everything BHRT would own, does own and might own in the future- including intellectual property. Again, can site exact line, page number for you. So, even if this company amounts to anything- it's really quite interesting to speculate what the common shareholder would ever really own or benefit from? You do realize why Northstar was formed out of essentially thin air as some sort of odd-ball "shell" company of insiders, don't you? BHRT was in default on a key loan, one of the MANY they have. That's known as bankruptcy. So, they form Northstar and somehow "assumed" that loan and now have been getting shares and options to pay back Northstar, as stated with a decent interest rate. The financials are often so convoluted (IMHO) that you can not clearly discern who is still owed what, who's been paid back how much, etc. It's an extremely confusing 10-K/10-Q whenever they put it out- loans upon loans, debt upon debt, loans "split" a half dozen times or more, loans "assumed" or "transferred" all kinds of screw-ball financing stuff. That is why the auditor is there and boils it down to what they owe which is a lot, how little cash they have, which is very little and that the chance for default, in the opinion of the auditor's is high. That's the way I read the 10-Q'a and similar. If you can site line by line, page numbers, etc and prove otherwise, I'd welcome the feedback.
"nice try again"?? What, is that a personal attack? I don't think you or anyone else knows how much Murphy personally has invested in this company- can you site a reference. 2) You and the other poster implicated that "recent" as in "new" large money had been "invested" by a certain "individual". Murphy is not some "mystery man" he sits on the Board of Directors- thus any material thing he does in terms of buying or selling stock MUST be disclosed in SEC documents. He can't make "private" infusions of cash or otherwise "invest" that I am aware of. 3) We have no way, as far as I can tell from public documents to know what he still has "invested" or not invested in the company. They have given him a LOT of options to cover him as "re-payment" for past loans. We don't know if he still holds any loans as far as I can tell from public, SEC documents. Again, if you know otherwise, please site a 10-Q or similar and help us all out here- it would be appreciated. Sorry, but on a public traded company the SEC documents are all that matter as far as I'm concerned. You can't make vague statements like "he" and "made a big investment" and "he" says "praises" w/o siting references. Sorry, WIKI would demand more documentation/validation than you are providing and I'm not a huge fan of WIKI for that very reason, yet they are an enormously successful site and referenced by 100's of millions of people daily. However, you'll note- that even on WIKI, when someone can't site detailed references, the self moderating community asks them to 1) Pull down the info or 2) Fill it in with credible, traceable references. Thanks again.
Can you please site some references to who "he" is and perhaps give us some exact quotations "he" has made since you're saying "he" has such high praises for this PUBLIC traded company? This kind of information would potentially be helpful to others deciding to perhaps invest or perhaps not invest in this particular stock. You are being pretty vague with "he" and "he has said" but not giving any material details, links, quotations that we can read as reference and validate as factual. Also, where do you get this information that no one else seems to have or know as a common or potential common shareholder? That would also help all of us out. Thanks in advance. Want to know more.
Who is this wealthy individual and how much do they have invested since you seem to know? Why don't you share it with everyone? We'd be very interested to know? I've read the 10-Q's going back quite a ways and have seen no mention of any new, large investor or cash infusion into the company (I could be wrong, if you can give me the 10-Q date and page number- would be appreciated) so unless we're all missing something here, when did this big individual investor "make their investment"? This would be a "material fact" (and a pretty important one at that) that if not disclosed to the common shareholders would be a problem for a public traded company- as far as I know. Again, could be wrong- but I believe on a public stock, once gone public, there are no more "private" or "secret" buy-ins w/o some sort of SEC or similar public filing/disclosure being made. Do you know how much they invested? Might help people here know more. How do you get this kind of information that the public does not seem to know about? I'd be curious to know? Again, on a public traded stock- it's supposed to be 100% "above board" and always disclosed so that every investor is on an equal footing. Thanks.
That is 100% untrue and you can not produce a 10-Q or similar to prove it. The ONLY thing BHRT has done is 1) They did swap some equity for some debt owed on old insider loans. I.E. they GAVE THEM A BOAT LOAD OF STOCK SHARES 2) The company has never, recently had much cash on it's book- it's entered on the cash entry of each 10-Q on the balance sheet entry and has been only as high as less than $200K and as low on last 10-Q as $6K, yes SIX THOUSAND DOLLARS, less than what's in most people's home checking accounts. 3) BHRT still has huge debt obligations outstanding- read the "going concern" portion of any 10-Q/10-K they have put out or go to Yahoo or similar and look at the debt ratios, return on equity numbers or similar - they are horrible. The "going concern" statement of their auditors shows them to be in dire trouble of being able to service their debt via adequate cash flows and cash on hand. Those auditors a licensed and under legal, fiduciary obligation and do not make such statements casually or for no reason. An auditor could face a law suit or even lose their CPA and other licenses for not being truthful about the condition of a company- and also, the company has a chance to rebut the auditor opinion, but you'll note the CEO (not a financial officer) of the company has signed off on every 10-Q/10-K with that "going concern" financial warning in it. So unless you can provide proof of your statement and site a 10-Q page number or similar- what you're saying is simply not true. When a company provides a balance sheet and other SEC statements known as "their financials"- there is no "secret" source or pile of cash hidden away somewhere. So I don't know what you're talking about and would love to hear your detailed explanation as to how they used "cash" to "pay off a large amount of loans"?
"crazy scared these SHORTS are"??? There is NO SUCH THING as "shorting" a 5 penny stock unless you are a professional, institutional trader- as in the finance firms who are providing cash for shares to BHRT. PERIOD. If there is any "shorting" taking place- it can only be taking place via firms who are broker/dealers on the pink/OTC markets as licensed, professional traders. A retail investor can NEVER, EVER, EVER get "short inventory" on a penny stock, usually not on anything under $5 and certainly not on a stock under $1. You give us the names of any brokerage you know, that we can call up and get short inventory on BHRT- I'd like you to prove it. Give the name. TD, E-Trade, whoever it is, tell us. Any "shorting" is being done by firms like Asher or Grey or numerous others with whom BHRT has WILLINGLY entered into deals to swap SHARES FOR CASH- and those deals carry a "convertible" option in what is known as "death spiral" financing. Read the BHRT 10-Q's and look for shares for cash and the word "convertible" it's plastered all over um. The firm providing the cash 1) Gets a STEEP discount to market on their shares- read the 10-Q's, it's been 40% to 60% or so on recent deals. They then get an option/note attached to the deal which gives them insentive to short the stock and cover later for an ever larger profit.
Death spiral financing is a process where convertible financing used to fund primarily small cap companies can be used against it in the marketplace to cause the company’s stock to fall dramatically and can lead to the company’s ultimate downfall.
Many small companies rely on selling convertible debt to large private investors (see Private investment in public equity) to fund their operations and growth. This convertible debt, often convertible preferred stock or convertible debentures, can be converted to the common stock of the issuing company often at steep discounts to the market value of the common stock. Under the typical “death spiral” scenario the holder of the convertible debt initially shorts the issuer’s common stock which often causes the stock price to decline at which time the debt holder converts some of the convertible debt to common shares with which he then covers his short position. The debt holder continues to sell short and cover with converted stock which along with selling by other shareholders alarmed by the falling price continually weakens the share price making the shares unattractive to new investors and can severely limit the company’s ability to obtain new financing if the need arises.
An important characteristic of this kind of convertible debt is that it often carries conditions like a quarterly or semi-annual reset of the conversion price to keep the conversion price more or less close to the actual stock price. But a lower conversion price also increases the number of shares that a bond holder gets in exchange for one bond, increasing the dilution of existing shareholders. A lower price reset can also force investors that have set up a long CB/short stock position to sell more stock ("adjust the delta"), creating a vicious circle, hence the nickname death spiral.
The companies that are willing to agree to financing on these terms are often desperate and could not obtain funding through any other means. The terms, though viewed by some as onerous, give the lender a potential way to recover their debt regardless of what happens to the shares of the company. The lender would have a potentially greater gain if the shares were to increase in value but if they do decrease in value, there is some protection. If this were not the case they would probably not be willing to lend the money given the poor risk profiles of the companies interested in this type of financing.
LETS JUST STICK TO FACTS, OK??
How can the float be "locked up"? I don't even know what that term would mean, number one. But 2) The float on this stock, due to the massive number of shares outstanding is at about 285 MILLION shares (float). It only traded a small fraction of that this past week (a 20 million day and a few 5 million days or so, maybe 50 million total or about 20% of the float at best)- never even came close to one turn over of "the float". So do you have any facts to back up your claim? Please explain it to us in detail. Thanks.
"They have the required regulatory personnel to work with FDA. You do"?? Really? PROVE IT? As of their last 10-Q they listed FOUR employees that I could see. A typical FDA submission is an enormous undertaking- most companies doing it have an entire department (as stated, 40 more employees dedicated to just FDA issues would not be unusual). They would have numerous people with long backgrounds in just FDA regulatory affairs- Ph.Ds an M.D. or two and lots of degreed engineers or bio-med majors or similar who have done a lot of regulatory affairs work- it's a complex world unto itself. Nothing else in industry is similar or can train/prepare you to do FDA regulated work- you must know it/learn it from inside a firm that's already doing it or from Sr people who have yrs of expertise at it. It also takes boat loads of money, time and writing long papers, data being compiled in VERY specific formats and then answering questions/rebuts often taking months for a single round of questions and answers to be resolved. From Forbes magazine, 2012: "Part I: The Rising Cost of Clinical Trials- In 1975, the pharmaceuticals industry spent the equivalent of $100 million in today’s dollars for research and development of the average drug approved by the U.S. Food and Drug Administration, according to the Tufts Center for the Study of Drug Development. By 1987, that figure had tripled, to $300 million. By 2005, this figure had more than quadrupled, to $1.3 billion.
The true amount that companies spend per drug approved is almost certainly even larger today. My Forbes colleague Matthew Herper recently totaled R&D spending from the 12 leading pharmaceutical companies from 1997 to 2011, and found that they had spent $802 billion to gain approval for just 139 drugs: a staggering $5.8 billion per drug. The biggest driver of this phenomenal increase has been the regulatory process governing Phase III clinical trials of new pharmaceuticals on human volunteers. One reason: Phase III clinical trials have become far larger and more complex than they were in the past. From 1999 to 2005, as the Tufts group has shown, the average length of a clinical trial increased by 70 percent; the average number of routine procedures per trial increased by 65 percent; and the average clinical trial staff work burden increased by 67 percent. On top of that, increasingly stringent enrollment criteria and trial protocols resulted in 21 percent fewer volunteers being admitted into trials and 30 percent more enrollees dropping out before completion of the tests."
Do you know how many drug candidates in a pharma/med company pipeline EVER see the light of day to FDA approval? It's like ONE PERCENT. Yep- ONE PERCENT. Of a 100 products in a pipeline, "maybe" ONE will ever actually get FDA approval- you then need an entire sales team and distribution and marketing plan and STAFF to hope it ever gets out to the field and is sold and MAKES MONEY. Let alone the costs to set up the controls, manufacturing, maintenance of an FDA produce- enormous record keeping, batch control tracking, recall processes and quarantine for bad product in place,etc ENORMOUS undertakings- taking 100's of people typically and LOTS of cash. Simple as that. Not exaggerating- just stating well documented FACTS. I've been inside an FDA regulated environment- it's brutal, stringent, paper and people and time consuming and strict- as in the FDA can put you out of business "strict" for simple process controls violations when you're dealing with products that enter a patient's blood stream or internals of their body. FDA sees things based on their "invasive-ness"- as in topical is level 1 (think skin cream), piercing the skin level 2 (a needle device) and oral ingested or entering the blood stream as in putting CELLS IN THE FREAKING HEART AREA as the most stringent. It's a long and brutal road to approval and you keep claiming they are "close" to the "end"- but I see no indication that is even remotely true. They don't have to people, let alone money to even draft or write or compile an FDA submission, let alone deal with the 100 other things that will need to come together once you even attempt to submit- the FDA upon submission is not even guaranteed to even respond to your submission, let alone read it all and respond to you and move it forward- they can reject it for any number of a 100 different reasons. IMO you're attempting to way over simplify what needs to take place to ever hope to reach an FDA approval. Good luck- you're entitled to your opinion. I don't see it as even a remote possibility- that's my 2 cents.
Unless I'm missing it- NOT A WORD about the big "Mirror" trial. Thought they were a company pursuing an FDA approved major product? What happened? Why be back at a 5 person trial being done in mexico when you had a phase II and a phase III that appear to have gone nowhere? The Marvel trial has been dead and unfunded since what, 2009? Now Mirror appears to be stalling out and barely got a passing mention in the last 10-q (ONE person "enrolled" is all we know so far) and it needs 100 plus not only enrolled but to be treated, tracked, data collected, etc.
Now they're scattering off on all these "medical tourism" stuff in 2nd and 3rd world nations all over who knows where? What's the plan? What's the strategy? How can 4 or 5 people be managing all these various projects and supposedly also conducting an FDA trial like Mirror with little to no cash on the books (R&D spending last 10-Q was a fraction of salaries, interest, overhead)- an FDA actual phase III is typically something that would take a full time staff of 40 to 100 people to conduct and see to the end- needing a filing in the 10's of THOUSANDS of pages of documentation to the FDA, numerous reviews, face to face meetings, re-submits, etc? The Mirror/FDA pursuit seems to have just vanished? I can go back and site so many "blogs" and so many "PR's" talking about all sorts of "new programs", none of which later were ever mentioned again or ever amounted to anything. The list is extensive and all documented in old PR's but then never mentioned again in future 10-Q/10-K or similar documents.
I just don't "get it"- it's all just more vagary to me. A lot of talk but very little substance IMHO. I don't see a single thing that leads to monetization of any serious level anytime soon and their only method of hanging on so far is continuing to dump shares in enormous quantities- to pay a few people their salaries and pay insiders back at Northstar. The common shareholder is being diluted out to nothing as I see it. And further, if you read the 10-Q's and 10-K, Northstar has essentially been granted rights to nearly everything of any value BHRT would have today or in the future - so what is left for the common holder? Northstar just had the terms ammended to insure they have a preferred share vote that will always allow them to out-vote the common holders. It's right there in the SEC filing. They increased the prefer shares at such a ratio to guarantee a lock on the vote for Northstar- that's the way I read it. Do your own due diligence. Good luck- but I don't see it or get it?
First off- the outstanding share count is EASILY found on page-1 of any 10-Q or 10-K. They have been massively dumping share/diluting in order to keep a trickle of survival cash coming in. At any given moment they have near zero cash left on their books. Last 10-Q from Nov 2013 had $6K, yes that's THOUSAND dollars in cash. BROKE essentially. There is no "secret" source of cash- it's the first entry on any balance sheet. The share counts have been the following:
10-Q April 2013 page one
As of April 30, 2013, there were 200,623,903 outstanding shares of the registrant’s
10-Q Aug 2013 page one
As of August 6, 2013, there were 236,657,436 outstanding shares
10-Q Nov 14 2013 page one
As of November ____, 2013, there were 347,175,310 outstanding shares
So based on that massive share dumping/dilution rate- the outstanding share count when this 10-K gets released will be WELL OVER 400 MILLION in my opinion. I'd guess 430 MILLION or more outstanding shares as of today.
This means that in a period of about 7 months, they massively diluted by about 147 MILLION shares from 200 to 347 million. That's over a 50% dilution to the common shareholder. My guess is by this upcoming 10-K they will have 100% diluted (doubled) the shares outstanding from just April last yr. Pretty sad story. You guys who "try" and imply there is some source of "financing" are just plain wrong. Other than dumping shares to finance houses at steep discounts- I find no other proof in any latest 10-Q of any source of cash coming into the company, none.
2) You point that management or Northstar have been "buying" shares is 100% and you can provide no proof that it is true. It's the exact opposite- BHRT has been issuing, as in GIVING FOR FREE, shares to Northstar and mgt as repayment of debt, as options that they recently repriced to be "in the money" instantly and also just gave themselves a bunch more options that vest immediately- a very unusual practice. Most options vest over about 3 to 5 yrs in increments and are in incentive to perform and stay with the company long term. These options could have been dumped on the recent run-up as they vested the day they handed them to them which was months ago.
People really need to learn to read the SEC filing documents such as the 10-Q and similar. They are all that matters in the end and you can't twists what's in black and white in a legal filing. BHRT is dumping shares by the boat load to pay themselves, pay the interest on their debt, pay the rent, etc and if you read the 10-Q, you'll see that most of the money they raise each qtr via share dumping goes to the SG&A line (sales, general and admin) costs and very little is actually going to R&D or so called "trials". I can site every page number and exact verbiage if anyone wants to challenge those facts.
They are also using the worse, most desperate kind of financing a firm can use- it's typically called "death spiral" in the industry. They give common shares to "finance houses" on the Street - who then give them cash for those shares. Those shares are STEEPLY discounted. The last 10-Q will show the terms are horrible, as in 40% to 60% discount to market. The firm who provides cash then also is given an option/warrant to acquire more shares, which is an incentive for them to short the stock which is exactly what had been happening- driving it to a low of .0063 at one point. They then get more shares that way, cover with those shares and make money on the discount shares and the newly acquired shares. Just google "death spiral financing" - it's well known in penny circles and well explained. I can site the exact lines in each 10-Q showing what firms they did these deals with (for instance ASHER, a notorious lender/cash for shares source of last resort) being just one.
No one is "buying" shares as you try and imply. You're just plain wrong. Shares are being dumped and their cash position as a company has them teetering on BK at any given moment/day. Northstar was actually formed/created out of thin air as BHRT had defaulted (went BK essentially) on a key loan. Northstar "assumed" that loan (must have put up their homes, collateral or similar) and they now get shares/options each qtr for interest and sometimes principal payments. It's all in the 10-Q's and 10-K. Not the short version Yahoo or similar puts out- you have to go to Edgar or similar and read the documents cover to cover- usually 40 to 60 pages or so.
Broward county clerk of the court web site:
https://www.clerk-17th-flcourts.org/Clerkwebsite/BCCOC2/OdysseyPA/CaseSummary.aspx?CaseID=7155410&hidSearchType=party_case&DisplayCitation=no&CaseNumber=CACE13024037&SearchType
Broward County Case Number: CACE13024037
Sharon McQuillan, et al Plaintiff vs. Kristin Comella Defendant
Judge ID / Name: 13 Haury, William W., Jr.
Plaintiff attorney: Payne, Todd Stewart
Retained, Florida BarID: 834520
Enough "proof" for you? It's as real as it gets. Go to the Todd Stewart Payne web site of their law firm and read through some of the cases they've won- a $100 million being the largest and many in the $10's of million or more. They're not some small time amateur, yellow book law firm. Civil and intellectual property and business dispute law is their forte.
http://www.zpllp.com/
Zebersky Payne, LLP,
110 Tower
110 Southeast 6th St.
Ste. 2150
Ft. Lauderdale, FL 33301
HOPE THAT HELPS. CLEAR ENOUGH NOW? Good luck.