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I find it amazing and disgusting that the dirt bag "CEO" Frank does not have the decency to say what we all know - This company is bankrupt and has been a total insolvent failure for well over one year.
The stock is worthless
My goodness - the stock does not trade for days at a time and when it does, a measly $220 knocks te bid down to 2.1 cents.
It is time for the stock to be delisted, decalre bankrucy or do whatever destitute companies do at this juncture.
This is a farce. The real price is zero.
Again XCHO did not trade today. No one there to step up to the plate and buy at 2.4 cents. No seller has the guts to hit the bid because they know it will disappear.
You now have to make an appointment to trade this stock. The XCHO perma bulls are trapped in a nightmare of their own making.
Still some bullish posters, but no one had the conviction to even take the 2.4 cent offer. What is the problem?
That was not info. It was useless "data" with no statistical or empiracal significance.
This stock is worthless. It does not trade. No one can sell it. 100,000 shares is worth only $2,000. So whatis "big" volume on the surface, is really enough to have a perty for sleepy heads at starbucks.
There is nothing compelling or actionable about the price action, fundamentals, or man hunt in the Florida swamp lands for Frank.
He is a weasel who has had his day. The stock can not be sold and shareholders are trapped in the worthless shares. What market maker in his right mind would buy the stock from any shareholder?
Why would anyone trade this penny ante cheap stock. You can not possibly make real money with it. Who can possibly go short this stock. Find me a broker who will lend you the share and I will show you a convict. Only MMs can short this dog. Only an idiot would try to short it.
It untouchable with the plague.
Investing any money in this stock is like throwing the money away.
I am happy to say that I helped to expose this company as a fraud. They are insolvent and anyone who "invests" their hard earned money in a fraudulent hiding weasel like Frank is making the mistake of a life time.
That piece of info in some obscure posting means nothing. The company is bust.
89,000 is only worth 1780 bucks - if the bidder will take it.
So lets get real. Looking at the bid and ask of this bankrupt company is an exercise in futility.
There is no company and the stock is as good as wall paper.
This dog of a stock has a negative net worth. They are essentially bankrupt and nothing can save them. The game is over, the stock price is a phony because no volume buyer exists.
Who in their right mind would buy the shares of a one trick pony that has lost its one trick?
This stock is trading at zero. you don't believe me? try and unload some shares in bulk. The mms will walk away from thisa worthless company.
No product
No profits
Declining sales
A CEO in hiding
Mounting losses
No possible way for any fool out their to invest in this dog
This is a farce and a weasel in hiding like Frank belongs in jail.
Any nonsensical gains in share price are just mms playing with the bid and offer trying to hoodwink a sucker to buy.
The bid is 3.51 cents. There is around $300 worth of stock being bid at that price. In other words, there is no bid. The next so called bid is at 2.6 cents.
This stock is worth zero. There is no way to get out. I am amazed that it is not delisted from the pink sheets or whatever sham of a venue it "trades"
"Turn out the lights, the party is over...."
This Ranger's fan agrees with the Flyer's fan. That can only happen on a slam dunk 100% right issue.
As per the same quarterly report, Rik stated that not only were sales non existant and getting worse, but that the company had no cash to go on after a few months.
Those few months are just about up.
The wolf is at the door, Rik has run out of BS capital raising stories, the Katmandu VCS has no Cobroxin or Nyloxin.
Time to close up shop
There is nothing in the report that any explainig can do justice to. The party is over. The company is busted and will soon have no more product to sell.
Analysing insignificant lifeless numbers is an exercise in futility. After one year of praying for Frank to explain himself, why would he do so now. He has spat in the face of every XCHO shareholder. He is in hiding in the swamplands of Florida.
The report gives us nothing to hope for and nothing to evaluate. The stock traded below 4 cents today. There is no market for hte stock and Frank will get away with it because he is a nobody.
His shareholders have lost every penny they invested and there is zero hope of getting out with anything but a huge loss in this worthless hopeless stock.
Surely no one can possibly believe that at this stage of the game XCHO will stay in business and its shares will be nothing but wall paper. Anyone who believes otherwise has a hard lesson to learn. He who does not know when to fish or cut bait is doomed for eternal suffering.
By my calculation, NPHC is about ready to close shop. Rik stated in the last quarterly that he was almost tapped out. He had maye a couple of moths of captial to keep the company floating.
The next time you here from Rik it will be either curtains or a miracle that keeps the wolf at bay for a tad longer. Either wat this boat is sinking.
The numbers are insignificant and represent another loss. The company is out of business.
Once again the sleezy CEO does not explain what the heck is going on with the company.
One thing is for sure. The sales are a dud, and the stock traded all of $375 today. Dinner for 3.
This company is toast and there is nothing worth analysing. The will soon have no product to sell, but will be looking for trailer trash homes to buy in a snake infested area of Florida. No Cobras there.
Judging by Franks inept track record it is a lock that he is wasting his time.
Even if this new "division" head was able to produce property or money for stock holdings, it would take years for anyone to see positive results - let alone any results.
Franks career is the inverse of the Peter Priciple. Frank has been fired from his field of incompetency only to be demoted to another field of which he has no knowledge.
If this so called preperty division head has anything to offer, he is not going to give it away for nothing. Frank has zero to offer except a third rate shell of a public company given to the new guy visa v setting up this "division."
This is low finance at its best. The guy can't even afford to go the proper route and buy an exchange listed shell.
This is a dead end. Wishing and hoping never made anyone any money. Praying that someone will come up with the money and instantly make XCHO money is beyond science fiction.
When great real estate investors like Sam Zell sell all their USA holdings and do not even attempt to buy USA property, there is a serious problem. When major real estate billionaires like Mort Zuckerman of Boston Properties say that things do not look good for USA property, Houston we have a problem. When their is still a major glut of properties and foreclosures - especially in Florida - that will take years to absorb, you are in the wrong business. When House price still keep falling with no sign of an end while unemployment is holding steady and high, housing is the single worst place to be.
The game is over and the stock is worthless. The best anyone can hope for is:
1 - Sell their stock and see the price drop to zero, but get a tax loss
2 - Hold onto the shares and use them as wall paper or give them to your great great grandchildren as a lottery ticket.
Investment bankers have extremely high standards for lending and Frank is not within a million miles of what it takes to get the money from them. It is called risk. This is not charity.
Frank will not even get money if pigs fly. There is not a snow balls chnce in Hades that this will work. All shareholders have no hope. Their investment is worthless.
They are looking for an idiot to invest in the still sinking Florida real estate market.
You hit the nail on the head. They have no money and no one is dumb enough to invest their money with Frank.
So the subsidiary will try to raise money for the idiot who is running it - By definition, anyone who buys Florida homes to fix them up and flip them is an idiot.
This is a total sham. Why would anyone trust a bankrupt slime ball who failed in retailing Cobroxin, who hid from his investors and weaseled his way into another venture without updating his investors.
Frank is the worst excuse for a human being there is. Anyone who invests more oney with him is throwing good money after bad money.
I believe Nyloxin works.
Unfortunately for share holders nobody cares because the company is insolvent and incompitent. The name of the game is marketing and NPHC has no capability in that field.
The climb does not prove that nyloxin works. Such proof would have to come through some type of scientific testing, preferably under the auspices of the FDA. One mountain climber's testimoney, probably paid for in one form or another by NPHC, is irrelevent.
The climb means nothing for NPHC or their shareholders. The only things that matter are sales and profits.
Let the clarion call ring out that just another guy climbed the mountain. Wait, NPHC has no money or advertising wherewithal to tell anyone.
Game over. Unless their new friends in Venezuela can promote the product to the OPEC nations.
Today was a great day for those who sold XCHO awhile back based upon using common sense and realizing that this was fraud of a company.
Frank abandonned his shareholders and anyone who is left holding this stock can not sell it without collapsing the share price to zero.
Frank can not spin his way out of this one. The guy is probably hiding somewhere in Florida disguised as a real estate salesman trying to sell swamp land for his "public company"
So now the mountain climber has done his deed. Now what? If a tree falls in the forest and no one is around did it make a sound?
Where is the big Ad campaign and media hoopla designed to promote this non event?
I want to know how many climbers used "Icy Hot Spray?"
Now I am waiting for the Hugo Chavez endorsement. This is so dumb that even Moe Larry and Curly wouldn't fall for it.
DEAD MONEY
If in your opinion they should have PR's this long ago, why did you not tell us until now?
Here is the only thing that matters - a quote from yesterday's Nutra Pharma 10Q:
>>>>Cobroxin
We offer Cobroxin, our over-the-counter pain reliever clinically proven to treat moderate to severe (Stage 2) chronic pain that was developed by ReceptoPharm, our drug discovery arm and wholly owned subsidiary. Cobroxin is marketed online and at retailers through our United States distributor, XenaCare. In August 2009, we completed an agreement with XenaCare granting it the exclusive license to market and distribute Cobroxin within the United States. In mid-October 2009, XenaCare began selling Cobroxin online through its product website, Cobroxin.com.
In November 2009, XenaCare began selling Cobroxin to brick-and-mortar retailers, including distribution to CVS in March 2010 and Walgreens in May 2010. On April 1, 2011, we notified our Cobroxin Distributor, XenaCare Holdings that they were in breach of our agreement. As a result of this, the distribution agreement was terminated effective April 10, 2011. XenaCare continues to market their existing inventory of Cobroxin. We have been in negotiations with potential new distributors for our Cobroxin products both domestically and internationally.<<<<<
There are a million companies out there with no business and inept CEO's. Why would anyone invest in Frank?
Who cares???!!!
What about all the other individuals who climbed the mountain? Whatever Jeffrey did is personal to him. NPHC is insolvent and does not have the means to advertise this event. Even if they did have the means to do so, who cares?
There is no evidence he could not have used any other pain relief product.
What is more important is this pathetic state of the company released yesterday:
>>>>>Form 10-Q for NUTRA PHARMA CORP
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16-May-2011
Quarterly Report
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Introduction
Our business during the first 2011 quarter has focused upon marketing our fully developed three homeopathic drugs for the treatment of pain:
? Cobroxin, an over the counter pain reliever designed to treat moderate to severe (Stage 2) chronic pain; and
? Nyloxin (Stage 2 Pain) and Nyloxin Extra Strength (Stage 3 Pain).
We will continue this focus during the remainder of 2011.
During our first quarter of 2011 and thereafter, the following has occurred:
Patent Approved
The US Patent and Trademark Office issued us a patent for the composition of matter and the use of cobratoxin, a component of cobra venom, for the treatment of pain. The patent (US 7,902,152) titled "Use of cobratoxin as an analgesic", describes a composition of matter for an analgesia and its method of use is disclosed. The method of use is for the treatment of chronic pain, especially to the treatment of heretofore intractable pain as associated with advanced cancer. The pain associated with neurological conditions, rheumatoid arthritis, viral infections and lesions is also contemplated. The method includes administering to a host an alpha-neurotoxin that is characterized by its ability to blocking of the action of acetylcholine at nicotinic acetylcholine receptors.
Product Advertising/Education
On March 09, 2011 we published an interview with Jeffrey Gottfurcht, founder of the Jeffrey Gottfurcht Children's Arthritis Foundation, about his upcoming Mount Everest expedition and the physical challenges he faces as a sufferer of Rheumatoid Arthritis for which he uses Nyloxin. Earlier, On January 18, 2011 we announced that we had sponsored Jeffrey Gottfurcht to be the first climber with Rheumatoid Arthritis to scale Mount Everest. Jeffrey is using Nyloxin to manage pain on his quest.
On February 01, 2011, we announced the publication of a Review Article written by Paul Reid, PhD, ReceptoPharm's Chief Executive Officer. The article, "Cobra Venom: A Review of the Old Alternative to Opiate Analgesics," was published in the January, 2011 issue of the journal, Alternative Therapies in Health and Medicine.
On January 20, 2011 we announced that we provided an educational grant for the Pharmacist Continuing Education course "Over-the-Counter Use of Neuroactive Peptides for the Treatment of Chronic Pain." The course is available through Power Pak and the publication, US Pharmacist.
We posted 23 articles on Nutra Pharma's blog located on the website at http://www.nutrapharma.com/blog/. These blog posts pertain to current events and the regulatory environment surrounding medications for the treatment of pain and inflammation with an eye on educating readers about Nyloxin for Chronic Pain Relief.
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Product Distribution
On April 27, 2011, we announced that we had selected Pentanet CA to serve as the exclusive distributor in Venezuela for our Nyloxin-branded pain relievers.
On April 12, 2011, we announced that our Distributor, Nutritional Alliance, had established a contractual relationship with the group purchasing organization (GPO) Innovatix for the distribution of Nyloxin? throughout the United States and, specifically, in long-term care facilities and the geriatric market.
Retail Sales and Distribution
During the first quarter of 2011, we generated revenues of $120,273 from Cobroxin and Nyloxin sales. During the quarter we continued to focus on expanding brand awareness for our over-the-counter pain relievers Nyloxin and Nyloxin Extra Strength by: (a) coordinating marketing and awareness for those pain relievers through attendance at various conferences; (b) seeking out additional international distribution partners for our Nyloxin branded pain relievers, (c) sponsoring Jeffery Gottfurcht, a Nyloxin user, as the first Rheumatoid arthritis sufferer to scale Mount Everest; and (d) coordinating our ongoing drug registration process in Europe, Canada, Central America, South America, the Middle East, Mexico, and India, including reviewing distributor candidates within those territories. We plan to continue our brand development and operations during the remainder of 2011 by continuing the above efforts, researching potential product line extensions for our branded pain relievers and organizing clinical studies that support our current drug products and advance our current research and development pipeline.
Cobroxin
We offer Cobroxin, our over-the-counter pain reliever clinically proven to treat moderate to severe (Stage 2) chronic pain that was developed by ReceptoPharm, our drug discovery arm and wholly owned subsidiary. Cobroxin is marketed online and at retailers through our United States distributor, XenaCare. In August 2009, we completed an agreement with XenaCare granting it the exclusive license to market and distribute Cobroxin within the United States. In mid-October 2009, XenaCare began selling Cobroxin online through its product website, Cobroxin.com.
In November 2009, XenaCare began selling Cobroxin to brick-and-mortar retailers, including distribution to CVS in March 2010 and Walgreens in May 2010. On April 1, 2011, we notified our Cobroxin Distributor, XenaCare Holdings that they were in breach of our agreement. As a result of this, the distribution agreement was terminated effective April 10, 2011. XenaCare continues to market their existing inventory of Cobroxin. We have been in negotiations with potential new distributors for our Cobroxin products both domestically and internationally.
Cobroxin is available at the following retailers:
? CVS
? Walgreens
? Winn Dixie
? e Vitamins
? Overstock.com
? Kerr Drug
? Meijer
? Quick2You.com
? Johnson Smith & Co
? Benchmark Brands
? Hannaford
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? Kinney Drug
? Value Drug
? Amerimark
? Vitamin World
? Drugstore.com
? Sweetbay
? CDMA
? Amazon.com
? Dr. Leonard's
? Publix
? Cardinal Health
? Imperial
? DermaDoctor
? AmerisourceBergen
? GNC
? Tree of Life
? Dik Drug
? Kinray
? Big Y ("Imperial Distribution")
? Kinney Drug
? Max Wellness
Cobroxin is currently available as a two ounce topical gel for treating joint pain and pain associated with arthritis and repetitive stress, and as a one ounce oral spray for treating lower back pain, migraines, neck aches, shoulder pain, cramps, and neuropathic pain. Both the topical gel and oral spray are packaged and sold as a one-month supply.
Cobroxin offers several benefits as a pain reliever. With increasing concern about consumers using opioid and acetaminophen-based pain relievers, Cobroxin provides an alternative that does not rely on opiates or non-steroidal anti-inflammatory drugs, otherwise known as NSAIDs, for its pain relieving effects. Cobroxin also has a well-defined safety profile. Since the early 1930s, the active pharmaceutical ingredient (API) of Cobroxin, Asian cobra venom, has been studied in more than 46 human clinical studies. The data from these studies provide clinical evidence that cobra venom provides an effective treatment for pain with few side effects and has the following benefits:
? safe and effective;
? all natural;
? long-acting;
? easy to use;
? non-narcotic;
? non-addictive; and
? analgesic and anti-inflammatory
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Potential side effects from the use of Cobroxin are rare, but may include headache, nausea, vomiting, sore throat, allergic rhinitis and coughing.
Nyloxin/Nyloxin Extra Strength
Nyloxin and Nyloxin Extra Strength are similar to Cobroxin in that they both contain the same active ingredient as Cobroxin, Asian cobra venom. The primary difference between Nyloxin, Nyloxin Extra Strength and Cobroxin is the dilution level of the venom. The approximate dilution levels for Nyloxin, Nyloxin Extra Strength and Cobroxin are as follows:
Nyloxin
? Topical Gel: 30 mcg/mL
? Oral Spray: 70 mcg/mL
Nyloxin Extra Strength
? Topical Gel: 60 mcg/mL
? Oral Spray: 140 mcg/mL
Cobroxin
? Topical Gel: 20 mcg/mL
? Oral Spray: 35 mcg/mL
In December 2009, we began marketing Nyloxin and Nyloxin Extra Strength at www.nyloxin.com. Both Nyloxin and Nyloxin Extra Strength are packaged in a roll-on container, squeeze bottle and as an oral spray. Additionally, Nyloxin topical gel is available in an 8 oz pump bottle.
We are currently marketing Nyloxin and Nyloxin Extra Strength as treatments for moderate to severe chronic pain. Nyloxin is available as an oral spray for treating back pain, neck pain, headaches, joint pain, migraines, and neuralgia and as a topical gel for treating joint pain, neck pain, arthritis pain, and pain associated with repetitive stress. Nyloxin Extra Strength is available as an oral spray and gel application for treating the same physical indications, but is aimed at treating the most severe (Stage 3) pain that inhibits one's ability to function fully.
We have begun selling our homeopathic pain relievers in Canada. Upon completion of international drug registrations, which we estimate will be completed during the second and third quarters of 2011, we will distribute Cobroxin and Nyloxin in Mexico, Central and South America, the Middle East and India. We are also pursuing product registrations in Europe which we estimate will be completed by mid-2012. Additionally, we plan to complete two human clinical studies aimed at comparing the ability of Nyloxin Extra Strength to replace prescription pain relievers. We originally believed that these studies would begin during the second quarter of 2010; however, these studies have been delayed because of lack of funding. We expect that these studies will begin by the end of 2011.
Critical Accounting Policies and Estimates
Our condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") applied on a consistent basis. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.
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We regularly evaluate the accounting policies and estimates that we use to prepare our consolidated financial statements. In general, management's estimates are based on historical experience, information from third party professionals, and various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management under different and/or future circumstances.
We believe that our critical accounting policies and estimates include our ability to continue as a going concern, revenue recognition, accounts receivable and allowance for doubtful accounts, inventory obsolescence, accounting for long-lived assets and accounting for stock based compensation.
Ability to Continue as a Going Concern: Our ability to continue as a going concern is contingent upon our ability to secure additional financing, increase ownership equity, and attain profitable operations. In addition, our ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered in established markets and the competitive environment in which we operate.
Revenue Recognition: In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. There was no provision for sales returns at March 31, 2011 as all products sold as of that date have been accepted by our customer and contractually we are not obligated to accept returns.
Accounts Receivable and Allowance for Doubtful Accounts: Our accounts receivable are stated at estimated net realizable value. Accounts receivable are comprised of balances due from customers net of estimated allowances for uncollectible accounts. In determining collectability, historical trends are evaluated and specific customer issues are reviewed to arrive at appropriate allowances. There was no allowance for doubtful accounts at March 31, 2011.
Inventory Obsolescence: Inventories are valued at the lower of cost or market value using the average cost method. We periodically perform an evaluation of inventory for excess and obsolete items. At March 31, 2011, our inventory consisted of finished goods and raw materials that are utilized in the manufacturing of finished goods. These raw materials generally have expiration dates in excess of 10 years. We performed an evaluation of our inventory and determined that at March 31, 2011 there were no obsolete or excess items.
Derivative Warrant Liability: We generally do not use derivative financial instruments to hedge exposures to cash-flow risks or market-risks. However, certain financial instruments, such as warrants, which are indexed to our common stock, are classified as liabilities when either (a) the holder possesses rights to net-cash settlement or (b) physical or net-share settlement is not within our control. In such instances, net-cash settlement is assumed for financial accounting and reporting purposes, even when the terms of the underlying contracts do not provide for net-cash settlement. Such financial instruments are initially recorded, and continuously carried, at fair value.
Determining the fair value of these instruments involves judgment and the use of certain relevant assumptions including, but not limited to, interest rate risk, historical volatility and stock price, estimated life of the derivative, anti-dilution provisions, and conversion/redemption privileges. The use of different assumptions or changes in those assumptions could have a material effect on the estimated fair value amounts.
Long-Lived Assets: The carrying value of long-lived assets is reviewed annually and on a regular basis for the existence of facts and circumstances that may suggest impairment. If indicators of impairment are present, we determine whether the sum of the estimated undiscounted future cash flows attributable to the long-lived asset in question is less than its carrying amount. If less, we measure the amount of the impairment based on the amount that the carrying value of the impaired asset exceeds the discounted cash flows expected to result from the use and eventual disposal of the impaired assets. We do not believe there to be any impairments of long-lived assets as of March 31, 2011.
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Stock Based Compensation: We record stock based compensation in accordance with FASB ASC 718, Stock Compensation. FASB ASC 718 requires that the cost resulting from all share-based transactions be recorded in the financial statements over the respective service periods. It establishes fair value as the measurement objective in accounting for share-based payment arrangements and requires all entities to apply a fair-value-based measurement in accounting for share-based payment transactions with employees. FASB ASC 718 also establishes fair value as the measurement objective for transactions in which an entity acquires goods or services from non-employees in share-based payment transactions.
Results of Operations - Comparison of Three Months Periods Ended March 31, 2011 and March 31, 2010
Net sales for the three months period ended March 31, 2011 are $120,273 compared to $864,424 for the three months period ended March 31, 2010. The decrease in net sales is primarily attributable to a significant decrease in Cobroxin sales, from $864,424 for the quarter ended March 31, 2010 compared to $106,078 for the quarter ended March 31, 2011. The remaining sales of $14,195 for the quarter ended March 31, 2011 represent the first sales of Nyloxin?. No Nyloxin? sales for the three months period March 31, 2010 or prior to the current quarter ended March 31, 2011 occurred.
Cost of sales for the three-month period ended March 31, 2011 is $31,527 compared to $402,542 for the three-month period ended March 31, 2010. Our cost of sales includes the direct costs associated with Cobroxin and Nyloxin? manufacturing. Our gross profit margin for the three-month period ended March 31, 2011 is $88,746 or 73.8% compared to $461,882 or 53.4% for the three-month period ended March 31, 2010. The increase in our profit margin is due primarily to a decrease in the direct costs of components associated with manufacturing.
Selling, general and administrative expenses ("SG&A") decreased $17,104 or 2.5% from $694,662 for the quarter ended March 31, 2010 to $677,558 for the quarter ended March 31, 2011, generally due to a decrease in advertising, consulting, legal and professional fees. Our SG&A expenses include office expenses such as rent and utilities, product liability insurance and outside legal and accounting services. Also included in SG&A expenses is stock based compensation expense, which increased $106,250 or 100.0% from $106,250 for the three months period ending March 31, 2010 to $212,500 for the three months period ending March 31, 2011. Research and development expenses decreased $46,296 or 84.5% from $54,813 for the quarter ended March 31, 2010 to $8,517 for the comparable 2011 period.
Our research expenses are related to ongoing research activities pertaining to ReceptoPharm's leading drug compound, RPI-78.
Interest expense increased $7,712 or 58.5%, from $13,189 for the quarter ended March 31, 2010 to $20,901 for the comparable 2011 period. This increase was due to an overall increase in short term indebtedness in the quarter ended March 31, 2011 compared to the quarter ended March 31, 2010.
Our net loss increased by $337,448 or 112.2%, from $300,782 for the quarter ended March 31, 2010 to $638,230 for the comparable 2011 period.
Liquidity and Capital Resources
We have incurred significant losses from operations and working capital and stockholders' deficits raise substantial doubt about our ability to continue as a going concern. Further, as stated in Note 1 to our condensed consolidated financial statements for the period ended March 31, 2011, we have an accumulated deficit of $30,272,537 and working capital and stockholders' deficits of $2,409,886 and $2,432,644, respectively.
Our ability to continue as a going concern is contingent upon our ability to secure additional financing, increase ownership equity, and attain profitable operations. In addition, our ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered in established markets and the competitive environment in which we operate.
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Historically, we have relied upon loans from our Chief Executive Officer, Rik Deitsch, to fund our operations. These loans are unsecured, accrue interest at a rate of 4.0% per annum and are due on demand. During 2010, we borrowed $309,700 from Mr. Deitsch and repaid him $407,400. During the three month period ended March 31, 2011, we borrowed an additional $257,000 from Mr. Deitsch and repaid him $281,387. As of March 31, 2011, we owe Mr. Deitsch $1,085,522. Included in this amount is $267,367 of accrued interest.
Subsequent to March 31, 2011 and through May 16, 2011, we received additional advances from our President, Rik Deitsch, in the amount of $102,720 and repaid Mr. Deitsch $34,170. The amount owed to Mr. Deitsch at May 16, 2011 was $1,158,496, which includes $271,791 of accrued interest
During the year ended December 31, 2010, we raised a total of $725,000, $300,000 of which was derived from the sale of outstanding warrants, $225,000 through the issuance of short-term notes and $200,000 from the common stock purchase agreement with Lincoln Park Capital ("LPC").
On October 29, 2010, the Department of the Treasury notified us that it had approved a grant in the amount of $244,479 based on our July 20, 2010 application to the Internal Revenue Service requesting certification for qualified investments in a qualifying therapeutic discovery project under section 48D of the Internal Revenue Code. We received these funds on January 31, 2011.
On November 8, 2010, we entered into an agreement with LPC to purchase up to $10,000,000 of our common stock. On November 9, 2010, we received $200,000 related to this transaction in exchange for 1,666,667 shares of common stock and warrants to purchase 1,666,667 additional shares of common stock at an exercise price of $0.15 per share. In consideration for entering into the agreement with LPC, we issued 400,000 shares of our common stock as a commitment fee to LPC. A copy of the agreement and description of the terms is included in Form 8-K which we filed on November 12, 2010.
During the quarter ended March 31, 2011 we received $520,000 from LPC in exchange for 5,855,960 shares of common stock. Subsequent to March 31, 2011 and through May 16, 2011 we received an additional $230,000 from LPC in exchange for 3,349,137 shares of common stock.
On May 4, 2011 we received a $25,000 short-term loan from a non-related party. This loan is expected to be repaid by the end of the year with interest calculated at 10% straight interest for the first month plus 12% annum calculated monthly after 30 days from funding.
We expect to utilize the proceeds from these funds to manufacture Cobroxin? and Nyloxin?, and conduct additional research and clinical trials for ReceptoPharm's leading drug candidate, RPI-78, and reduce our debt level. We estimate that we will require approximately $1,600,000 to fund our existing operations and ReceptoPharm's operations over the next twelve months. These costs include: (i) compensation for ten (10) full-time employees; (ii) compensation for various consultants who we deem critical to our business; (iii) general office expenses including rent and utilities; (iv) product liability insurance; and (v) outside legal and accounting services. These costs reflected in (i) - (v) do not include research and development costs or other costs associated with clinical studies.
We began generating revenues from the sale of Cobroxin? in the fourth quarter of 2009 and from the sale of Nyloxin? during the first quarter of 2011. Our ability to meet our future operating expenses is highly dependent on the amount of such future revenues. To the extent that future revenues from the sales of Cobroxin? and Nyloxin? are insufficient to cover our operating expenses we may need to raise additional equity capital, which could result in substantial dilution to existing shareholders. There can be no assurance that we will be able to raise sufficient equity capital to fund our working capital requirements on terms acceptable to us, or at all. We may also seek additional loans from our officers and directors; however, there can be no assurance that we will be successful in securing such additional loans.
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Uncertainties and Trends
Our operations and possible revenues are dependent now and in the future upon the following factors:
? whether Cobroxin, Nyloxin, and Nyloxin Extra Strength will be accepted by retail establishments where they are sold;
? because Cobroxin is a novel approach to the over-the-counter pain market, whether it will be accepted by consumers over conventional over-the-counter pain products;
? whether our international drug applications will be approved and in how many countries;
? whether we will be successful in marketing Cobroxin, Nyloxin and Nyloxin Extra Strength in our target markets and create nationwide and international visibility for our products;
? whether our drug delivery system, i.e. oral spray and gel, will be accepted by consumers who may prefer a pain pill delivery system;
? whether competitors' pain products will be found to be more attractive to consumers;
? whether we successfully develop and commercialize products from our research and development activities;
? whether we compete effectively in the intensely competitive biotechnology area;
? whether we successfully execute our planned partnering and out-licensing products or technologies;
? whether the recent economic downturn and related credit and financial market crisis will adversely affect our ability to obtain financing, conduct our operations and realize opportunities to successfully bring our technologies to market;
? whether we are subject to litigation and related costs in connection with use of products;
? whether we will successfully locate another distributor and whether there will be interruptions in our operations;
? whether we comply with FDA and other extensive legal/regulatory requirements affecting the healthcare industry.<<<<
I was referring to the infamous Raj Rajaratman who just got convicted on 14 or so counts of trading on insider information.
It looks like he is going to jail for a long long time unless he flees the country.
He was a large hedge fund manager - Galleon - who got caught with his hand in the cookie jar. It has been front page news for several days and has been all over the business channels.
As far as XCHO is concerned this so called real estate venture - a poor ruse to use a public shell as a vehicle to invest in real estate - is a joke that will not pay off. Most folks use ASE or NYSE shells - not some pink sheet corpse that no investor will take seriously.
XCHO is DOA. Or should I say DIO (dead in Orlando).
Frank's weasel report that he is investing in Florida real estate is the ultimate insult to investors.
The Orlando market stinks. To wit, Disney just had a bad quarter and is having a hard time. The Orlando market is not turning around so fast. Even it it were to turn around in the next year or three, where is Frank getting the money? What kind of properties is he "investing" in?
In my investment banking capacity, I had several Orlando companies come to me seeking untraditional sources of financing because they just could not get the money.
One company was a world famous Orlando resort and another was a huge Florida real estate investor that specialized in Mitigation Banks (read state sponsored ecology funds who redevelop environmentally spoiled lands and then sell credits to developers) in Florida and specificly Orlando. All were desperate and all were a waste of time. And I am talking about huge companies.
So here we have a liar of a CEO, who did not - a still does not - have the decency to inform his investors about the status of Cobroxin, who now is going itnot the wrong business at the wrong time with no capital and no hope of a return on investment for years if ever.
One of America's greatest real estate investors, Sam Zell, sold out of the USA and is heavily investing in Brazil. The Brazilians are rebuilding their own country. If they had any interest in Florida it would be the over glutted Miami area.
This is a joke. There is no hope of XCHO ever seeing a profit in real estate for several years. Capital gains? Fuggetaboutit! Rental income? Not in a crummy market. Another shaggy dog tale.
What an embarrassment! XCHO has been dead and decaying for quite some time. And now this?! Frank belongs in jail right next to Raj and Rik.
I think that you had better stock up on it by contacting XCHO or NPHC0 directly or by grabbing as much as you can at your local retailer. This product is dead in terms of mass marketting.
The next choice is Icy Hot Spray. I have no idea about the merits of this product verses Cobroxin, but one thing is for sure: whom ever markets "Icy Hot Spray" gets maximum milage out their Ad campaign by using Shaquille O'Neil in a highly effective Ad campaign. They know how to target a market, they spend the bucks to do so and they have a great pitch man to perform their TV Ad campaign.
So the moral of the story is always the same. Do it right or don't do it at all.
Its like mass marketed spaghetti sauce. The stuff stinks out loud. Get me some Red pack crushed Italian tomatoes, fresh garlic, extra virgin olive oil, herbs, etc., and anyone will make a tastier product with hardly any effort. But properly mass advertise the product and it will sell.
No judge will EVER grant injunctive relief in this situation. This is not a case for a TRO, Prelimanry injunction or an injunction.
What XCHO would have to do is sue for specific performance.
In either situation, the process would involve a trial and mounting legal fees. A TRO is a pre trial order to avoid "the tree from being cut down" before a final adjudication can be achieved. In this case there is too much evidence of bad faith and non performance on Frank's side for any judge to act before trial. There is no "tree falling down."
If anything, Rik can turn the tables and ask for specific performance to make Frank honor XCHO's side of the deal! Frank has violated the contract - and no judge will care about technically whether Frank barely met minimum sales standards.
Any lawyer can Sheppardise this case and find legions of legal precedent that says Frank has no leg to stand on.
Since Frank has no money and has obviously given up on the contract - as per his behavior of not fullfilling his side of the bargain - no jury in the world would back him up even if it went through trial.
More important, Frank does not have the money or inclination to sue and be part of a long messy legal action. If Frank does not have the stomach, skills or money to market the product, where would he come up with the same to sue? No serious lawyer would ever take his case.
As for a non interuption of supply clause, that is aother non starter. Frank can't even sell his own supply! Why would someone who has no money, sales that are drying up, and no success even attempt such a manuever? It is the same problem that Frank has failed at. Where is he going to get the money and inclination to try again? No one would believe him if he tried. And I can't believe that he is stupid enough to bang his head against the wall to even think about trying. Again, no lawyer would ever take this case.
In sum, Frank violated the contract by:
1 - Not delivering the Ad campaign as promised
2 - Not delivering the sales as both parties intended.
3 - Not acting in good faith as per 1 & 2 above by delaying the campaign for over 3 months and not spending what was required to do the job.
4 - Walking away from the deal by hiding and by admitting failure in his public statement to change businesses by going into real estate.
5 - No one can force someone to do business with another person. NPHC has already put in place a strategy (ineptly handled) to cannibalize Cobroxin with Nyloxin.
This dog won't hunt. Frank is beaten and he does not have a legal basis to sue. Frank has moved on and investors should do the same.
They can substitute Black Mamba Venom
"Mambaxin"
Some facts about XCHO's so called trading today:
1 - XCHO did NOT trade today unless one calls 4,400 worth of stock changing hands "trading." Some people would call it a good handtailored men's suit. Others would call it a good bottle of wine. In the stock market all reaonable people would call it ZERO.
2 - XCHO did not perform today. It simply was screwed around with by MM's trying to get some sucker to buy on a quiet day. So they raised the offer and messed around with some petty cash hoping to real someone in. That's what market makers do. they try to create the illusion of movement.
3 - XCHO has not outperformed NPHC. Not that outperforming NPHC on some kind of one day basis is some kind of badge of distinction. No, the manipulators who are trying desperately to get out of NPHC before the inevitable bankruptcy are pulling all stops to hype that stock. On the other hand XCHO has no pulse. Who gets to zero first is an ignoble gaol in this death race.
4 - The obscure article cited had nothing to do with today's spread of the bid and offer. There is no relation between that meaningless article and the no volume day that XCHO had.
$4,400!!!!!! That used to be a commission for a big trade. It does not even qualify for chump change. It is totally illigical to come to any other conclusion. This was not buying. It was just some MMs messing around on a dull day.
Tomorrow may be more of the same until some real sellor comes along and the floor falls out from under the "stock" This is an insolvent business that will never come back.
Anything is posssible. After all we got Bin Laden after 10 years.
But other than a miracle, not in this or the next lifetime. The company has no products to speak of except nonsense pie in the sky stuff that the market has not accepted. It has no money and obviously aq liar and bood for a CEO who has mislead investors and botched everything he has done except to raise alms for the poor from dumb investors.
Why would anyone trust this guy? Why throw good money after bad? How many times does one have to get snake bitten (lol) before they call it a day?
The share price gone down 90%. I would say that I got that one right.
What am I missing here. All the XCHO boards are ghost towns and the company is deader than Bin Laden.
AAPL has shown that it can stay overbought for weeks on end. Its not even close.
Any split over 3 for 1 is a fools errand. Just read O'Neal's stats on the matter. The best splits are always small.
4 cent bid. And that bid is an illusion. I do not see how anyone can think that this is good.
This stock is worth ZERO. It is not even an asset. It is just a shell company with no business and lots of debt.
That has got to be the dumbest lamest deal I have ever heard of. Maybe Dave Shultz should do their marketing. He can beat up a few people in from of a Chvezmart store as Kate Smith does God Bless america.
This company is toast. Mountain climbers, old people, dogs & cats, doctors who will not endorse a product that does not have any FDA approval. what is the next story that Rik will make up?
Maybe he can pull off a hat trick and get the concessions for Libya, North Korea and Iran?
I want the movie rights to the NPHC/XCHO story. Not enough voilence for Scorcese. Maybe the Coen Brothers can pull the movie off.
The point of my posts is to educate unsuspecting people about the true condition of this company. I intend to do so until they close their doors.
NPHC is bankrupt in all but the judge's official imprimator. Same with XCHO.
Potential investors have to know the fraud that is being perptrated on them by NPHC.
The Mount Everest thing, the Hugo Chavez thing and all the rest are right out of "The Producers" the nonsense is so over the top that it is high comedy.
Unfortunately, XCHO does not have a business and no matter how much you wish that they can distribute Cobroxin without NPHC's permission they will lose for several reasons:
1 - The small amount of Cobroxin they have left may not be able to be sold at all because nobody wants it - to wit the dwindling quarterly sales - and NPHC can get injunctive relief from the courts to stop them.
2 - XCHO does not have enough money to keep their doors open.
3 - Without a contract with NPHC, XCHO will have nothing but a futile court battle with NPHC. This is because, both companies have no money to pay for lawyers and damages. As far as injunctive relief is concerned, NPHC could easily tie XCHO up in knots for months by starting with a TRO, thus freezing Cobroxin sales until the courts decide. As far as the contract is concerned, any idiot can make a case that Frank violated his end of the deal by not acting in good faith - to wit the delays in rolling out the product and the Ad campaign plus the pathetic lack of good fasith in enacting the Ad campaign.
4 - In the end, if NPHC does not sell Cobroxin to XCHO, XCHO's goose is cooked.
5 - Last, but not least, Frank knows all of this. Frank is beaten and wants to move on with his life. It is obvious that he knows that he can not get to first base with Cobroxin. It is human nature to move on after such a failure. His ludicrous attempt at face saving with the real estate announcement says it all. That plus his hiding from investors.
The game is over and Frank knows it. He has known it for almost one year. The product never caught on. Whether it works or not is not the issue. Sales are the issue and Frank has hidden for one year while he let investors twist in the wind.
Why would anyone put their money with a failure who has no money, no talent, has failed for one year, and has hidden like a weasel who can not be trusted?
Hugo Chavez - This is beyond Surreal!!!!
Now we know where Rik has been hiding - Tibet, Nepal, Venezuela.
Desperate measures for desperate times. I can see the new logo now:
Viva Nyloxin Por La Revolution!!!
Are you pulling my leg? The latest quarterly said they has maybe 3 months of cash left. Now they are down to say two months.
How can $10 million sustain them for an entire year? Truth be told, in order to do it right, that amount is good for one or two months. We are talking advertisinf, R&D, overhead, etc.
As for having pulled off the tin cup trick for 10 years, this time it is different. They are in a deeper hole than ever and their products have proven to be a failure in the market place.
This is the end game. No body believes in Pinnochio anymore.
The single most important thing is that this company is desperate for money. money does not grow on trees and nPHC is totally broke.
Keeping the stock up oveer 6 cents will just ptolong the period that this vegetable of a business stays on life support.
There are no future prospects. Only future hype.
The grim reaper of death is on NPHC's doorstep and nothing can prevent that inevitabilty from hapenning.
NO money
No prospects
No Competent managemnt
Lots of pumpers
The company is being supported right know by mms, pumpers, rumors, hype on non important stories like the mountain climber, more hype about Schein's grand openning that already occured months ago to no avail, and even more hype about the elderly.
Sometimes there is a difference - at least short term - between a stock's price and the reality of the company's status. But in the end as Warren Buffet has said, when the tide goes out we will see who is swimming without a bathing suit.
The company will run out of money in 2 or so months according to their latest quarterly report. That statement is fright from Rik's mouth:
Some quotes from the report:
>>>We have a history of losses.
We have a history of operating losses in our business and have incurred significant net losses since our inception. Our net losses for the years ended December 31, 2010 and 2009 were $3,388,189 and $2,292,444, respectively. Accumulated deficit at December 31, 2010 totals $12,758,413. There can be no assurance that we will be able to generate revenues in sufficient amounts to generate profits.
If our cash position continues to deteriorate, we will not have sufficient cash to fund our working capital.
Our continued operating losses have contributed to the deterioration of our cash position. Further, we have used a significant amount of our cash for consulting services, web hosting, infomercials, new product inventory and marketing materials including the publication of a book about our products. If we are unable to generate revenues or secure financing on a timely basis, we will not have sufficient cash to fund our working capital and capital expenditure requirements and we may be forced to cease operations. In such event, the shares of our common stock may cease to have any value
Going Concern -- As shown in the accompanying financial statements, the Company’s operating and capital requirements in connection with operations have been and will continue to be significant. The recurring losses from operations and increased contractual agreements raise doubt about the Company’s ability to continue as a going concern
While we have been able to manage our working capital needs with the current credit facilities, additional financing is required in order to meet our current and projected cash flow requirements from operations. We cannot predict whether this new financing will be in the form of equity or debt. We may not be able to obtain the necessary additional capital on a timely basis, on acceptable terms, or at all. Additional investments are being sought, but we cannot guarantee that we will be able to obtain such investments. Financing transactions may include the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms. However, the trading price of our common stock and the downturn in the U.S. stock and debt markets could make it more difficult to obtain financing through the issuance of equity or debt securities
<<<<
Even if Rik could somehow get the money spoken of here, it will only prolong the final death by a few months. There is a trend in motion here that has been going on for years. Nothing has worked and now while NPHC lies on its death bed, some vested interests are desperate to prop up the stock price so they can sell into strength.
Premunitas Premonitas
They have admitted in their quarterly that they now have only around a couple of months worth of cash before they have to close the doors.
So the market makers and bagholders are pulling out all stops to get NPHC's stock price up so they can unload the shares on other people. Hence, Fiday's low volume ($80K) move up in share price on a quiet pre holiday session with stories about a mountain climber, senior citizens, XCHO being terminated, a Nyloxin rollout, etc.
The problem is that Schein has had Nyloxin for months, so haven't they already rolled it out? That seems like an oxymoron to me.
Also, the market for Nyloxin from Schein and the senior citizens is tiny and a hard sell
The company is broke and has shown no ability to sell their non governmental approved products for years.
Bialystock and Bloom anyone?
Whoever buys this stock will be holding shares in a company that will be admittedly bust very soon. So how can the shares of a bankrupt business with no prospects (nothing in FDA trials) and no products that the public wants, be worth more than zero?
XCHO's stock is worthless and XCHO is being used as a scapegoat by NPHC. XCHO can't collect any money from NPHC even if they were to win a lawsuit because NPHC has no money.
If NPHC can't even pay off XCHO, how can they pay any other bills?
1000 to 1 longshot: If Rik has independent wealth and fraud can be proven, perhaps Frank can pierce the corporate veil and collect from Frank personally.