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10-Q out first glance read: CASH LOW and a few other items of note.
http://ir.ocata.com/sec-filings/content/0001019687-15-001797/ocata_10q-033115.htm
PAGE 1: 35,667,442 shares O/S as of April 30, 2015
From the balance sheet, PAGE 3:
Cash is 3,532,602
Immediate accounts payable is 1,191,185
So at best, their current cash position is about $3,532,602 - $1,191,185 = $2,341,417 ( a little over $2 mil left, which they burn every month approx)
Thus they will be tapping Lincoln ASAP for more dilution funding IMO.
PAGE 4, statement of operations:
Their R&D + general/Admin expenses for the qtr: 7,065,433
So they are burning about 7,065,433 / 3 = $2.3 MILLION PER MONTH
Their qtr loss was $7,035,071 which means they're tracking to LOSE about $28 MILLION this yr which is up considerably.(considering the legal expense nonsense was paid off and not in this qtr expenses) They're burning money like it's going out of style.
(wow, and that's with no major trials being funded yet)
PAGE 19:
"We have no therapeutic products currently available for sale and do not expect to have any therapeutic products commercially available for sale for a period of years, if at all. These factors indicate that our ability to continue research and development activities is dependent upon the ability of management to obtain additional financing as required."
PAGE 20 (they spent more on R&D but NO TRIALS BEING FUNDED. Just says they're "preparing" for trials)
"R&D expenditures, excluding non-cash stock compensation expense, increased from $2,422,659 for the three months ended March 31, 2014 to $2,822,853 for the same period in 2015, for an increase of $400,194 or 16.5%. The increase in R&D expenditures was primarily due to an increase in employee costs of approximately $202,000, an increase in expenses related to travel and conferences of approximately $163,000, an increase in costs related to our scientific advisory board of approximately $83,000, and an increase in consulting expenses of approximately $38,000. These increases were partially offset by decreases in pre-clinical program expenditures of approximately $79,000 and lab supplies of approximately $40,000. These shifts in expenditures were driven primarily by our shift in focus from pre-clinical programs to our planned expansion of our clinical capabilities as we continue to prepare for the commencement of our Phase 2 clinical trial in AMD and Pivotal clinical trial in SMD."
NOTHING NEW that I can see? Just BURNING CASH TO PAY THEIR OVERHEAD SALARIES and biz as usual- NO key "trials" underway, NO myth of a JV or whatever, nothing else mentions. JUST DILUTION and business "as usual" IMO. Not a "new" thing in the entire 10-Q on my 5 minute, first-pass quick read version
Will double check it again later- but I see NOTHING "new" or of major "news" in it- dilution and spend. That's about it.
Knoepfler, highly respected stem cell writer- DOUBTS about Bioheart:
http://www.ipscell.com/2015/05/bioheart-on-the-edge/
Very interesting piece of writing IMO. Raises one of the very questions I had myself, which is how can this "U.S. Stem Cell Clinic" thingy even be legal on U.S. soil, given the FDA's general stance on stem cells being drugs (and things like the famous 60 minutes investigative journalism piece on stem cell "clinics" etc?) I never understood from the get-go how this "clinic" could operate without FDA scrutiny- and so far BHRT is citing some "FDA law interpretation" of their own it seems and Knoepfler who knows a whole lot more about any of this than me- appears to say just that in his write-up. Fascinating piece of writing IMO.
Entire Knoepfler article, quoted verbatim:
"Bioheart on the edge in 2015?
Stem cell biotech company Bioheart ($BHRT) has had a rough 2015 so far.
Could this year be a decisive, negative tipping point for the company?
It has a number of clinical trials going, but from my view things seem increasingly uncertain.
An oddity amongst stem cell biotechs, Bioheart and its leadership have at times seemed to toy with what some might view as controversial projects. Kristin Comella, CSO of Bioheart, has played a major role in other ventures including in the past with the Ageless Institute, a stem cell clinic. Earlier this year, investors reportedly including Brenda Leonhardt (ex-wife of Bioheart founder, Howard Leonhardt) filed a lawsuit against Bioheart for millions in alleged unpaid debt.
Comella and Bioheart are also involved in what I view as concerning training of physicians in the use of a fat-based stem cell product that might be an unapproved biological drug from the FDA’s perspective. Comella provided some insights on Bioheart and the doctor stem cell training in a recent interview I did with her. She didn’t seem concerned with the FDA.
Bioheart has another puzzling venture, US Stem Cell Clinic, LLC, (“SCC”), which it describes in this way:
“a partially owned investment of Bioheart, Inc., is a physician run regenerative medicine / cell therapy clinic providing cellular treatments for patients afflicted with neurological, autoimmune, orthopedic and degenerative diseases. SCC is operating in compliance with the FDA 1271s which allow for same day medical procedures to be considered the practice of medicine. We isolate stem cells from bone marrow and adipose tissue and also utilize platelet rich plasma.”
Recent FDA draft guidances at the very least call into some doubt the compliance of some of the offerings of US Stem Cell Clinic, LLC. The FDA could back down on the requirement for the fat-based stem cell product SVF to be approved in advance as a biological drug, but then again it might not.
Investors seemed worried. Bioheart stock has taken a beating recently, down almost 60% in the last 3 months and almost 7% just today. Overall it seems that something has got to give soon.
Disclosure: I own no stock in Bioheart or its direct competitors. This piece is not financial advice."
End of Knoepfler article.
Again, fascinating to say the least IMO. I thinks his points are spot-on IMO.
http://www.fda.gov/AboutFDA/Transparency/Basics/ucm194655.htm
http://www.fda.gov/ForConsumers/ConsumerUpdates/ucm286155.htm
SOLID RED YESTERDAY, must be the "positive quarterly results" thingy? PR just doesn't seem to "move the needle" anymore on this one, seems to me. Maybe the recent issuing of 87 MILLION dilution shares in a period of less than 2 month could be having a "slight" effect on the common share performance? Just "maybe"? Kinda possibly?
Just filed 10-Q, PAGE 1:
http://www.sec.gov/Archives/edgar/data/1388319/000114544315000630/bioheart_10q.htm
"PAGE 1:
As of May 05, 2015, there were 734,759,150 outstanding shares of the Registrant’s common stock, par value $0.001 per share.
Last filed 10-K, PAGE 1:
"The number of shares outstanding of the registrant’s Common Stock, $0.001 par value, as of March 16th, 2015 was 647,653,526."
So that's 734,759,150 - 647,653,526 = 87,105,624 MILLION shares of pure dilution from March 16th to May 5th, i.e. less than 2 months. "
Below is just one possible example and explanation of perhaps why the common shares have now been driven to a recent new all, all, all time low of .0045 and now a range in the .005 to .006 CENTS area?
For just ONE example- and there's many IMO in this just issued BHRT 10-Q :
LOOK at just one key line from this most recent BHRT 10-Q, PAGE 24:
PAGE 24:
"Subsequent stock issuances:
22,053,009 shares of its common stock in settlement of $79,000 of outstanding convertible notes payable, and $2,739 accrued interest, "
Do the math on that one line of share dilution issued in settlement of "convertible notes payable" aka "toxic debt" (the SEC calls it "toxic" or "floorless" debt, also "ratchet" and "death spiral"- see the SEC site on "convertible securities, they devote an entire page to it):
Thus, from that line above, 22,053,009 shares were issued to pay $79,000 of principal + $2,739 of interest. That's = $81,739 dollars paid for via issuing over 22 MILLION SHARES of common dilution stock.
That means whatever firm got those dilution shares- they got um for:
$81,739 / 22,053,009 = .0037 CENTS per share. Yep. Less than 4/10ths of ONE CENT - someone, some debt lender hedge firm or similar recently got 22 MILLION plus shares at .0037 CENTS each.
So that firm- they could easily be dumping/selling in here at the .0055 price range and still be making a 50% return on their money. A freaking 50% ROI on $81K loaned out for a period of MONTHS. THAT is what "toxic" financing does and looks like.
They, whoever this lending firm is, could be selling/dumping down to the .0045 range (the new all, all, all time recent low) and still be making a 25% return on their money (their annualized return/interest rate on their money would be way higher than 25% as they don't lend this money for anywhere near 1 yr, it's probably been 6 months tops, so that's a 50% to 100% return on their money, when savings and CD's are paying like 1% at best. Wonder why these hedge dudes get into this biz of loaning money to cash desperate penny or SUB PENNY stock nano caps?).
http://www.bloomberg.com/news/articles/2015-03-12/josh-sason-made-millions-from-penny-stock-financing
AND, BHRT took on FIVE MORE of these toxic, floorless deals so far in 2015 already. FIVE. See page F-34 of the most recent SEC filed 10-K and then PAGE 24 of the just issued 10-Q:
PAGE 24:
"Subsequent financing
On April 13, 2015, the Company entered into a Securities Purchase Agreement with Vis Vires Group, Inc. (“Vis”), for the sale of an 8% convertible note in the principal amount of $33,000 (the “Note”).
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on January 16, 2016. The Note is convertible into common stock, at Vis’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owed multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.
On April 27, 2015, the Company entered into a Securities Purchase Agreement with Daniel James Management, Inc., for the sale of an 9.5% convertible note in the principal amount of $25,000 (the “Note”).
The Note bears interest at the rate of 9.5% per annum. All interest and principal must be repaid on April 26, 2016. The Note is convertible into common stock, at Asher’s option, at a 47% discount to the lowest daily closing trading price of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal at 150%, interest and any other amounts."
A company supposedly "getting stronger" takes on TWO MORE DEALS like those, w/ horrible financial terms, TWO more of um in just April of 2015 alone? Why? Why would this "company getting stronger" need $25K and $33K borrowed at some of the worst terms a cash desperate company can get, terms that will equal massive more share dilution- why would they do that if they're "getting stronger" and all these other claims being made? Why? $25K and $33K needing to be borrowed in cash-for-dilution-shares deals just a month ago? Why? Why would Sr Mgt be doing this continually - when the PR and one-liners are trying to paint a picture that things are supposedly "getting better" as are claims being made here? Why? Pittances of $25K borrowed at a time- at 45% and 47% share discounts that will result in massive on-going common share dilution effects? Why? Why do that? Doesn't the "revenue" thingy fix all this supposedly, LOL???
DILUTION, mass dilution and its effects- it's stunning IMO. It explains a lot to me of why the stock price is likely what it is recently and behaving as it is IMO. I believe there's now a near un-ending flow of cheap, low priced dilution shares continually hitting the Ask/sell side to be dumped by these lending firms.
My .0055 or so CENTS worth
LOL quote, "So we will finaly see a JV in the Platelet-Area for sure!"???
Based on what? A bunch of bad conjecture and pure myths scraped together on some micro blog site? Really?
WHERE is it proven that there is any "JV in the platelet-area for sure"??? Where?
Other than some vast imagination constructed myth -strung together via imaginary "links" envisioned to exist (when they don't exist) in some "article" and then "extrapolated" into some vast story on a micro blog site that some imaginary un-announced supposed "partnership" or "JV" exists when none does as of today?
Has the company, OCAT- have they said ONE WORD to confirm anything in this myth being circulated by this little micro blog site and it's story tellers? Where's the company's confirmation of all this conjecture?
Why would the company OCAT not be all over this if even one shred of what comes off that nothing, little, mirco blog site was even remotely true? Considering the source of the myth- and that site's track record at ever being correct, I know where I'll file this latest myth.
LOL quote, ""Only resulted in 241K to the bank".... Only?? Compare that to few years back. This company is growing stronger and stronger as their business plan unfolds perfectly. "
LOL, yes, only $241K in their bank- versus just their growing and increasing general/Admin expense line being $900K for the same period- over 3X their incoming cash, THREE TIMES what they banked. And that's only part of their overall expenses. They're running huge cash deficits to this day and "revenues" isn't changing that for all intents and purposes and the massive use of continual dilution and continual borrowing at horrible terms, that alone proves that point IMO.
LOL, "growing stronger"?? Based on what facts? WHERE in the 10-Q is that proven??
They took a LARGER LOSS year over year. LARGER, not smaller. They're LOSING MORE MONEY NOW than last year, and that's w/o funding any trials and with major cuts to R&D yr over yr etc. WHAT exactly is "getting stronger"? Where?
Their mass increase in the rate and use of share dilution doesn't indicate they are "getting stronger" IMO? How would that be possible? How?
Why would they ink qty-5, FIVE new toxic, floorless, convertible debt deals IN ADDITION to being tapping MAGNA now several time in a row- if they were supposedly "getting stronger"?? Why would those facts be true (see most recent filed 10-K and now just issued 10-Q)- why?
How does a company taking a LARGER yr over yr LOSS = "it's getting stronger"??? How exactly does that "work" in accounting form or in business form or in any generally accepted or know "form" related to business? How exactly?
I'm fascinated by this? "getting stronger"?? HOW? How exactly? Dilution is increasing, not decreasing. Use of toxic debt borrowing is constant, cash is desperation low against just current liabilities, no major events like funding any large trials is occurring, the O/S share count is climbing practically vertical on a chart, the share price just made all, all, all time recent lows and is trading very near those all, all, all time lows today- most likely because of mass, mass never ending common share dilution- over 87 MILLION shares worth as of this just filed SEC 10-Q and on and on and on???
What exactly is this "getting stronger" part- the exact details of how that "works" exactly? What part on the balance sheet? What part on the statement of operations? What part on any part of their SEC filed "financial statements" or any part of the just filed SEC 10-Q shows that they are "getting stronger" - the exact part and page number etc? Where?
I just personally don't see it? Must of missed the "getting stronger" part in all of it? Perhaps? Where is it?
LOL quote, "Straight from the BHRT bosses mouth... "
LOL !!
Well, here's the "non sound bite" ole "full" version the "boss" SIGNED AND FILED WITH THE SEC- the "full story" told in this version is a tad bit different IMO.
The ENTIRE 10-Q, quite a read, cover to cover IMO. A lot more in this "version" than a few selective one-liners. Start with the LARGER LOSS FROM OPERATIONS, the qty-5, FIVE more "toxic" convertible debt deals done in 2015, the $79K total cash left to their name, and the over 87 MILLION dilution shares issued just recently- maybe just those "highlights" for a starter.
http://www.sec.gov/Archives/edgar/data/1388319/000114544315000630/bioheart_10q.htm
Oh, and the "GOING CONCERN WARNING" is always good reading too- the one the "boss" writes and signs off on:
PAGE 11, the "boss" signed SEC filed 10-Q linked above:
"NOTE 2 — GOING CONCERN MATTERS
The accompanying unaudited condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying unaudited condensed financial statements, during three months ended March 31, 2015, the Company incurred an operating loss of $1,048,217 and used $384,251 in cash for operating activities. As of March 31, 2015, the Company had a working capital deficit (current liabilities in excess of current assets) of approximately $11.0 million. These factors among others may indicate that the Company will be unable to continue as a going concern for a reasonable period of time.
The Company’s existence is dependent upon management’s ability to develop profitable operations and to obtain additional funding sources. There can be no assurance that the Company’s financing efforts will result in profitable operations or the resolution of the Company’s liquidity problems. The accompanying statements do not include any adjustments that might result should the Company be unable to continue as a going concern."
Guess that part didn't make it as a "bullet point" into any one-liner ole "PR" as usual, LOL ! Always somehow miss that one getting in those PR's. Same with the dilution share count or cash on hand or new convertible debt deals inked in the past few months or how no trials were started- you know, ole Myocell or Myocell SDF or whatever- now going on SIX YEARS old, etc Funny, those never make in those "cool" PR thingys? Why is that? Why I wonder? Why?
LOL quote, "Here's what matters TODAY. Stock value is about the FUTURE not the past."
TODAY??
LARGER LOSSES yr over yr. Things aren't "getting better" they got WORSE, WAY WORSE IMO. Look at the LOSS FROM OPERATIONS in this 10-Q.
$79K TOTAL CASH left to their name against current liabilities of over $11 MILLION and just immediate, like RIGHT NOW accounts payable of $2 MILLION plus
DILUTION, DILUTION oh, oh MASS DILUTION - like 87 MILLION shares worth in a period of a few freaking MONTHS. Shares being poured out like water, some of those shares at prices like .0035 CENTS ea approx.
Qty-5, FIVE toxic, convertible debt deals so far in 2015 and it's only MAY. See the 10-K and 10-Q "subsenquent financing pages" (Vis Vires, Daniel James Fourth Man, KBM Worlwide, etc) That's averaging ONE A MONTH. THAT is "today" and not the "past"- and it matters probably more than any other "force" affecting the common shares IMO, as is the mass common share dilution it results in- there will likely never be enough retail buyers to overcome the down pressure created and/or buying pressure needed to vacuum up so many 10's and 10's and 100's of MILLIONS of free trading shares that will go to the Ask/sell-side every last time these hedge lenders are used.
MAGNA being tapped continually- and they now holding/dumping 10's and 10's of MILLIONS of free trading shares- as BHRT DOES NOT MAKE EVEN REMOTELY enough cash to sustain itself- it's a share issue/dilution and borrow debt-for-shares machine for all intents and purposes IMO and their own SEC filings prove it each time. Shares issued to pay common bills, shares issued to pay interest, shares issued for continual rotating toxic debt, shares issued for promissory notes, shares issued to "guarantors" and on and on and on. READ any SEC filing including this most recent 10-K and now 10-Q, it's one continual "story" of common shares being issued.
The future? Well, the "future" is a continual flow of toxic lending hedge firms (Asher, KBM Worldwide, Danial James, Fourth Man, Vis Vires group etc) - who will IN THE FUTURE have a continual flow of CHEAP DILUTION SHARES (45% to 47% share discounts) being issued to them now all the way in to 2016, READ THE 10-Q FILING. THAT is the "future" - a constant, a certainty, immutable. Happening in real time now and in to the "future".
Sound bites versus the DETAILS OF THE 10-Q.....
Me, I stick to the entire 10-K or 10-Q and the "whole story" it tells.
Oh, and NO TRIALS started let alone being run or funded. NO "share buy back", LOL. No "positive cash flows", etc A big list of NO's IMO. Not happening.
Remember the "PR" thingy about how "dilution is not acceptable anymore" blah, blah, blah or whatever it was? Do the math on the 2015 DILUTION so far- it's a staggering number.
PAGE 1, MOST RECENT FILED 10-Q:
"As of May 05, 2015, there were 734,759,150 outstanding shares of the Registrant’s common stock, par value $0.001 per share. "
What was that share count only 1 yr ago???
Revenues don't even generate enough cash to PAY THE INTEREST ON THEIR DEBTS- that's the reality of their situation.
Revenues were $489,557 - $241,933 cost of sales = $241,933 cash to their bank account (before any taxes, etc) from "revenues".
So their revenues (top line) for the qtr, only resulted in net cash of $241,933 to their bank account for the entire quarter.
https://www.sec.gov/Archives/edgar/data/1388319/000114544315000630/bioheart_10q.htm
From PAGE 30:
"Interest Expense
Interest expense during the three months ended March 31, 2015 was $429,842 compared to $305,898 three months ended March 31, 2014. Interest expense primarily consists of interest incurred on the principal amount of the Northstar loan, our former Bank of America loan, the Seaside National Bank loan, accrued fees and interest payable to the Guarantors, the amortization of debt discounts and non-cash interest incurred relating to our issued convertible notes payable. The debt discounts amortization and non-cash interest incurred during the three months ended March 31, 2015 and 2014 was $320,373 and $258,361, respectively."
So interest on their debt cost them $492,842 for the 3 months of Q-1, 2015. Interest expenses alone are thus running $492,842 / 3 = $164,280 per month Some of that is stated as "non cash" on convertibles, etc- in other words paid in dilution shares on debt conversions, but still, these are interest expenses. At least $30K a month of it appears to be immediate, 100% pure, real cash needed to be paid- which is thus over 1/3 of the cash they bank from "revenues", probably more than that is paid in cash interest expenses. No matter- as their general/ADMIN costs blow all that out of the water- see below)
So their "revenues" resulted in $241,933 cash to their bank ($80,644 per month), but their interest alone on their debts was $492,842 for the same period or $164,280 per month, essentially DOUBLE what their revenues are generating.
And that's not salaries, bonuses owed, legal, overhead like turning the lights on and lease, etc. They DO NOT generate even enough cash just to pay the interest on their debt- let alone fund their basic overhead, let alone actually run and conduct any "business".
PAGE 30, SAME 10-Q:
"Marketing, General and Administrative
Our marketing, general and administrative costs were $998,133 for the period ended March 31, 2015 compared to $ 833,329 for the period ended March 31, 2014, an increase of $164,804. The increase in costs primarily due to increases in salaries from $112,500 for the three months ended March 31, 2014 to $177,376 for the current period, an increase of $64,876, and our legal and consulting fees increased by $51,895 and $45,880, respectively, due to additional services provided.
Our marketing, general and administrative expenses primarily consist of the costs associated with our general management and product and service marketing programs, including, but not limited to, salaries and related expenses for executive, administrative and marketing personnel, rent, insurance, legal and accounting fees, consulting fees, travel and entertainment expenses, conference costs and other clinical marketing and trade program expenses."
So their costs made up of mostly salaries and legal and "consulting fees" etc- those are over $300K PER MONTH, more than the entire cash generated by their top line "revenues".
Thus, no matter how one slices it they're not even remotely close to being cash flow positive or cash self sustaining- the "revenues" are not even close to enough as their general/ADMIN costs keep rising as shown in the paragraph above. They pay common bills still via issuing dilution shares, they defer things using "promissory notes" with interest, they delay paying etc But when the rubber meets the road- they don't come anywhere close to balancing out in terms of expenses versus cash coming in, not even close. Especially cash based only on revenues- they'd be lights out real quick if they had to live on self generated cash and stop the mass diluting and continual use of toxic debt financing deals (FIVE toxic debt financing deals already in 2015 since it's the 5th month, MAY, so that's one convertible debt deal per month avg so far, un-ending, on-going)
NO "trials" were conducted or "funded" in this quarter
NO "share buyback" took place, LOL (wow, what a surprise, eh?)
NO major debt was paid off during the qtr (their current obligations total - it actually increased slightly now to $11 million plus)
So they lost about a $MILLION in the qtr and nothing like a major trial was started, let alone conducted or funded etc. (remember the re-start Myocell or Myocell SDF trials or whatever it was? How's that working out so far?) Yet massive share dilution continued (87 MILLION plus shares) and more "toxic" floorless convertible debt deals were done; qty-2 more in just April, plus 3 more before that in Jan/Feb making FIVE, qty-5 "toxic" convertible debt deals done so far in 2015.
What was that, that "stuff" that was said about no more dilution or no more continual use of toxic debt being "acceptable", etc LOL? What was it? The 10-Q and the last 10-K show that's just not the case IMO. They're diluting more than ever before and using just as much toxic debt as ever before- I don't see or read a single thing in these SEC filings to show otherwise? Nothing?
10-Q, first glance- LARGER LOSS FROM OPERATIONS, only $79K total cash left on-hand and 10's and 10's of MILLIONS more common dilution shares issued and also more toxic, convertible debt deals done in just early April. Those are the first "highlights" - will read cover to cover later when I get the time.
Here's some key pages IMO at first 5 minute glance:
PAGE 1:
As of May 05, 2015, there were 734,759,150 outstanding shares of the Registrant’s common stock, par value $0.001 per share.
HOLY FREAKING COW. I was guessing "maybe" 700 MILLION shares- but WOW !! They blew through the 700 MILLION mark and it looks like are just keeping on trucking on that share dilution? Wow, that's a lot of dilution IMO !
Last filed 10-K, PAGE 1:
"The number of shares outstanding of the registrant’s Common Stock, $0.001 par value, as of March 16th, 2015 was 647,653,526."
So that's 734,759,150 - 647,653,526 = 87,105,624 MILLION shares of pure dilution from March 16th to May 5th, in less than 2 months. WOW !
PAGE 5 (condensed statement of operations)
Net loss from operations: (807,646)
NET (LOSS) INCOME: $(1,048,217)
That net loss from operations is up about $200K from the same period/qtr over qtr from 2014. Losses are getting larger, not smaller. And that's w/o any debt being paid down this quarter- the debt actually grew a bit if anything.
They LOST BASICALLY a FREAKING $MILLION for the qtr, despite the ole "revenue" thingy. WOW ! LARGER LOSSES than prior quarters. That would put um on track for an annual loss of around $4 MILLION at this rate.
Marketing, general and ADMIN costs continued to rise- getting bigger again.
Marketing, general and administrative: $998,133
(that's about a $150K increase over same period 2014, again, their rising costs are continually far outstripping any revenues after cost of sales is subtracted out it appears)
PAGE 11:
"NOTE 2 — GOING CONCERN MATTERS
The accompanying unaudited condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying unaudited condensed financial statements, during three months ended March 31, 2015, the Company incurred an operating loss of $1,048,217 and used $384,251 in cash for operating activities. As of March 31, 2015, the Company had a working capital deficit (current liabilities in excess of current assets) of approximately $11.0 million. These factors among others may indicate that the Company will be unable to continue as a going concern for a reasonable period of time."
PAGE 23/24"
On April 2, 2015, the Company issued 11,508,100 shares of common stock in settlement of $213,904 of accrued payables to Guarantor of the Company’s loan agreement with Bank of America and Seaside Bank. (See Note 5).
In April 2015, the Company sold 540,736 shares of its common stock for net proceeds of $5,000. In connection with the stock sale, the Company issued 540,736 warrants to purchase the Company’s common stock for five years at $0.009247 per share. In In addition, the Company issued 6,869,151 shares of its common stock in settlement for services, provided, 22,053,009 shares of its common stock in settlement of $79,000 of outstanding convertible notes payable, and $2,739 accrued interest, 1,363,031 shares of its common stock in settlement of $12,635.29 related party interest on Northstar debt (see Note 8), 14,917,086 shares of our common stock in exchange of $79,075 draw down on the Magna equity line and on April 9, 2015, the Company issued 413,289 shares of its common stock in settlement as “true up” shares pursuant to the draw down on the equity line."
So that's about 11.5 MILLION + 500K + 6.8 MILLION + 22 MILLION + 1.3 MILLION + 14.9 MILLION + 400K = approx 57,400,000 DILUTION shares issued in JUST APRIL of 2015 !!! 57 FREAKING MILLION SHARES OF DILUTION issued in a period of about ONE MONTH, holy freaking cow !! The dilution share issuing machine seems well oiled and to be chugging right along, LOL, wow !
PAGE 24 (more toxic debt deals for cash, in addition to tapping the Magna line in the paragraph above for $79K costing um 15 MILLION plus shares)
"Subsequent financing
On April 13, 2015, the Company entered into a Securities Purchase Agreement with Vis Vires Group, Inc. (“Vis”), for the sale of an 8% convertible note in the principal amount of $33,000 (the “Note”).
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on January 16, 2016. The Note is convertible into common stock, at Vis’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owed multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.
On April 27, 2015, the Company entered into a Securities Purchase Agreement with Daniel James Management, Inc., for the sale of an 9.5% convertible note in the principal amount of $25,000 (the “Note”).
The Note bears interest at the rate of 9.5% per annum. All interest and principal must be repaid on April 26, 2016. The Note is convertible into common stock, at Asher’s option, at a 47% discount to the lowest daily closing trading price of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal at 150%, interest and any other amounts."
PAGE 33:
"At March 31, 2015, we had cash and cash equivalents totaling $70,974. However our working capital deficit as of such date was approximately $11 million. Our independent registered public accounting firm has issued its report dated March 16, 2015 in connection with the audit of our financial statements as of December 31, 2014 that included an explanatory paragraph describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern and Note 2 of our unaudited financial statement for the quarter ended March 31, 2015 addresses the issue of our ability to continue as a going concern."
(Note, the accounts payable alone exceed $2 MILLION again, against just $79K cash left on-hand. See "accounts payable" entry PAGE 4)
That's the quick glance version- the dilution continues to be staggering IMO, the losses are increasing if anything, not decreasing and they are near cash broke again w/ about $79K total against accounts payable of over $2 million and total obligations of now $11 million. So "revenues" don't appear to have made any difference. They tapped MAGNA costing um over 15 MILLION shares for $79K of cash AND still did qty-2 more toxic, floorless, convertible debt deals just recently (Daniel James again and Vis Vires again)- in April.
Nothing really changed here that I can see- they're in the same mode of dilution and continual use of toxic debt and very low cash.
My .0058 cents worth. Will read it in more detail later on.
LOL quote, "If it closes Up Today, that's Very Positive "
Well.....
So I guess all the rest is also "not positive" too then.
It's BLEEDING RED today and looking to close that way- nothing "positive" about it- and NO, nothing's been "proven safe" yet either. They barely have a micro sized phase I under their belt.
This thing is barely out of the starting gate- and the FDA phase II gauntlet and real trials haven't even begun yet. YEARS to know what they have or don't have at this point- all else, is pure speculation IMO. A royal crap shoot.
LOL quote, "Why is OCAT Dr. Robert Lanza influential?"
Or, WHY DOES LANZA SELL and DUMP so much of his company's own stock- seemingly always at some near-term, short-term peak or spike in price, LOL??
If this stock is supposedly "better than gold" and going to $240 or $1000 a share and all the other "predictions" (MYTHS) - then why is Lanza and all the other past insiders such prolific sellers and dumpers of their own shares, the shares they get issued for free?
Now THAT is real "influence" to me- tells me all I need to know IMO.
RED, Looks like Lincoln is just back on the Ask/sell-side IMO.
When a firm for all intents and purposes "lives off of" low grade, 100% pure dilution money, well, why's it a surprise when there is constant sell-side, downward pressure on the common shares?
OCAT "taps" Lincoln continuously (essentially non stop, un-ending)- or they'd be BK or insolvent fairly quickly as they burn a lot of cash and have no other source of incoming funds or cash. So it's "tap" and sell shares or die.
And that's w/o even funding a major, large, phase II trial yet- then the real serious dilution will begin IMO.
So no surprise here to me and no grand conspiracy theories needed- it's just likely Lincoln on the sell side and probably some NASDAQ short algos working it too. The myth that shorting would abate or vanish once the big "uplist" happened and all never made a wit of sense to me personally? The most brutal shorts and hedge firms LIVE and THRIVE on the NASDAQ. It's where HFT (high speed trading) and auto-bot trading and ECN (electronic networks) and all the rest were invented and live and thrive. It's all 100% legal and is an integral part of life on the Nasdaq and even the NYSE. Nothing new here? NASDAQ shorts live and pray daily for cash poor, no product, no sales, living off of Lincoln type firms IMO- they have computer algos to "sniff" these stocks out daily and pounce um at-will. The algos see this thing "pop" a bit- and then the pro traders step in and short for the easy money. Wash, rinse, repeat- until something major changes at this firm to give them some kind of financial strength or long term prospect that looks 100% solid.
Why would it be a surprise that this stock is now a golden short candidate to pro trading desks and hedge firms and similar on the NASD market? OCAT is cash low, they have no sales, and they will have no expected product or sales for years per their own SEC filings and public Sr. Mgt statements- what's the up-side catalyst here right now? IMO, this is the type of stock the pro short trader look for all the time. It's an easy target at this point IMO.
Nothing more complicated than that to me. Lincoln on the sell and probably coming up on pro short radars all over the place.
LOL quote, "Is this the end for BHRT?" Well, it ain't lookin real good here to say the least IMO.....
A 1/2 CENT share price now for all intents and purposes.
Yahoo finance and Google finance have the market cap at a paltry $3.82 million as of today. Yep, SUB $4 mil on the market cap and their current obligations in the latest 10-K "going concern warnings" is like $11 million or so now (just "accounts payable" I believe exceeded $2 MILLION in the last 10-K, more than half their current market cap now, WOW !).
BHRT finished 2014 with a grand total of $36K cash-on-hand despite inking qty-3 new "toxic", floorless convertible debt deals with firms like KBM Worldwide and some new firm Vis Vires and another Fourth Man deal, just taking on more and more toxic convertible debt. (see page F-34 most recent SEC filed 10-K)
They unloaded 65 MILLION plus more shares of pure dilution before the first 3 months of 2015 were even done (see same page F-34 of most recent 10-K)- and if one does the math, a lot of those shares were issued "on the cheap", at some sort of discount to the market price - issued to a toxic lender/hedge firm like Asher or Magna or similar.
The common shares have spent nearly all of 2015 (you know, the "big year" and the yr of the "revenues" thingy and the "new plan" and all that jazz) - the common shares have spent nearly the entire yr 2015 (it's MAY now) as SUB ONE CENT shares and just made a recent new all, all, all time low of .0045 CENTS (yep, SUB 1/2 CENT now is the new low).
So to quote the question, "Is this the end for BHRT?"
Well, IMO it sure ain't lookin real good in here at this point it seems? Pretty tough sledding looks like to me. If any of these toxic debt firms or now MAGNA (see the SEC filings regarding the details of the $3 million MAGNA "credit line" BHRT inked and has already tapped per the latest 10-K filing)- if any of them are converting shares in here at these prices- they'd be getting shares in the .005 range minimum to probably as low as about .0025 (yep, 1/4 of ONE CENT) range IMO (just do the math based on the share discount formulas in the toxic debt deal terms in the SEC filings, discounts of like 45% plus). So if there's now 10's of MILLIONS of .0025 or .003 cent shares hanging out there now (which is now very likely IMO)- then is can't bode well for this share price that's been spiraling down, nor the collapsing market cap IMO.
The lower this share price goes- the more and more dilution the company needs to raise even a pittance of cash each time (the SEC calls it a "death spiral" for example- see their website on convertible, floorless debt deals, the SEC) and the more extremely dilutive any existing toxic, convertible note deals get if those firms choose to "convert" their debt to shares in these price ranges. A single "draw" from Magna for say around $100K which BHRT already did once in early 2015, that "draw" amount would now = more than at least 20 MILLION shares to Magna at these current common share prices, 20 MILLION more shares of pure dilution to get just $100K of cash. When Magna puts those 20 MILLION shares on the sell/Ask side- what's it do to the common share price? Well, all of 2015 so far seems to pretty much "tell the tale" IMO. Not a good "tale" to say the least- given that the common shares are down like 70% or so from late 2014 and are now down something like 80% or more for the past 1 yr period.
My .0058 or so AM opening price cents worth.
.0063 "used to be" (as in past tense) the stock's all, all, all time low. It's now trading in that range for weeks at a time- like it's the "new normal" range it appears to me.
Only $56 bucks left on Bid at .0056 and it's .0051 below, WOW !
BMAK has it "bracketed" with 10K share blocks on both sides (Bid/Ask) this AM too- haven't seen that in a while?
0.0056 / 0.006 (10000 x 10000)
As of right now- it's that single 10K at .0056 on the Bid and then all .0051's or lower below it. Looking like the MMs may try and take it to the low .005's again today from the way the level II is stacked right now?
It really seems IMO like this is about a 1/2 CENT stock now- that appears to be the new base trading range. Remember when .0063 was the all, all, all time low? Wow. Now it made a 2015 new all, all time low of .0045 just recently and is now regularly trading in the .005's and .006's? The volumes are also much higher now too- in these new low price ranges if one pulls up a chart and looks at the volume bars along the bottom- it's doing very high volumes as it makes ever lower lows and lower highs, now doing "normal" trading days in the .005's and .006's sustained, for weeks. Almost all of 2015 it has traded as a SUB ONE CENT stock now- and it's May, almost half way through the year.
And that's after the "big revenue" and supposed "biggest year" ever and all the rest? How can it be making new all, all, all time lows when it's all going so great and about to "go big" in the next 6 months and all? (I thought the past "predictions" said that by 2015 it would already be huge and making enormous gains, you know, cause of the "revenue" thingy and all, but that obviously hasn't happened? Not sure why? 10's of millions or really 100's of millions of cheap dilution shares continually being sold maybe? Just maybe possibly?).
And "the two" of the now THREE total "employee" count (see latest 10-K filing) - they got enormous pay increases AND "cash bonus" awards for the past 2 yrs- like a tripling of their pay packages and then the common shares are making new all, all, all time lows? What sense does that make- and the company finished 2014 with a grand total of $36K TOTAL cash-on-hand in the company bank account according to the recently filed 10-K? How does that make any sense at all? I don't get it?
But hey- I guess that's just me? My .0058 CENTS worth.
Oh, just took out that 10K block at .0056 as I hit click. The Bid is getting even thinner. Looks like it could easily go to the .0051's if a single sell order for even say $500 bucks worth were to get posted. Wow, no Bid support at all still- even at these 1/2 CENT prices? Amazing IMO.
BHRT SEC filing of 2010 showing a DEBT OWED BRENDA LEONHARDT- just as described in the lawsuit IMO. Not sure what's not clear about it- and it's still "on the books" to this day as $1.5 million "subordinated debt, related party" (see balance sheet, latest filed 10-K, March 2015) which would be the original principal amount owed her and apparently never paid back to her- which is why she's suing the company per the text of the lawsuit as filed (the way I read it at least, IMO)
http://www.sec.gov/Archives/edgar/data/1388319/000114544310001874/d27097.htm
That's a 2010 SEC filing by BHRT. It's says in plain English that the Leonhardts were "owed by the company" $3 MILLION dollars for loans they made in regards to the B of A loan guarantee (that B of A loan later went into default apparently)- and then it clearly shows Howard and Brenda Leonhardt being divorced and SPLITTING the owed loan- which would be SHAZAM, $1.5 MILLION of principal owed each and then accruing interest for all the time period it's not paid back to them.
FROM THE SEC FILING ABOVE, PAGE 19: (FORM 10-Q, DATE JUNE 30, 2010)
" In March 2009, the Company’s Chief Science and Technology Officer and his former spouse repaid $3.0 million of principal and a pro rata portion of accrued interest on behalf of the Company. The Company then owed this $3.0 million to the Company’s Chief Science and Technology Officer and his former spouse. This liability was reflected on the Company’s consolidated balance sheet on a separate line titled “Subordinated related party loan.” This amount continued to accrue interest at an annual rate of the prime rate plus 5.0%.
In February 2010 the Company’s Chief Science and Technology Officer and his spouse filed for divorce papers. Pursuant to the divorce, their jointly owned shares and their ownership of the loan to Bioheart for which they hold as a result of their payment of $3 million of principal and related interest to Bank of America on behalf of Bioheart, would be divided equally between them. As a result, the Chief Science and Technology Officer’s common shares were then reduced to 2,513,840 and his percentage shareholding of the Company to 13.8%, with his former spouse assuming ownership of the same number of common shares and percentage shareholding of the Company. Their commonly owned loan and related interest, as of March 29, 2010, of $4,140,201, was been equally split. The Chief Science and Technology Officer on March 29, 2010, elected to convert his portion of the loan and related interest to restricted common stock and warrants. As a result, Howard Leonhardt, the Company’s Chief Science and Technology Officer, as of June 30, 2010, owns approximately 20% of the Company as of June 30, 2010."
Seems pretty clear to me? Again, not sure what's hard to understand about it? The company said it owed the Leonhardts $3 mil, Howard took his part in stock and warrants or whatever, Brenda Leonhardt upon divorce got 50% of the loan owed = $1.5 million and was apparently never paid by BHRT and BHRT still to this day shows a $1.5 million debt on their balance sheet as "subordinated debt, related party" and it's for exactly $1.5 million and has been carried forward on the books for years.
Seems pretty clear to me? Someone is owed that $1.5 million, else- why didn't BHRT discharge it off their books as paid or write it down as a bad debt and book it over to the other side of the ledger, etc? Why? It's there to this day? Why?
LOL quote, "Have been wondering the same thing but am quite certain the source will be connected to Collins. Seems too targeted not to be."
Funny how it's NEVER anything related to the company itself (BHRT) and the deals they willingly sign with a slew of toxic debt lenders: Asher, Daniel James, KBM Worldwide, MAGNA, Vis Vires, Fourth Man, etc (see ANY of their SEC 10-K or 10-Q filings going back years)???? NEVER a possibility of that or of those traders and their trading desks- always this "collins" thing???
Again, WHAT EXACT LAW, what EXACT SEC or similar statute is being broken when a trade for 666 shares (a buy or a sell order) is placed by some trading desk and routed electronically to fill? Is there an EXACT law that says trade amounts of 666 shares are some violation of law? I'm confused regarding all that?
Apple or Google or NO OTHER STOCK of the 1000's of stock traded daily on the U.S. markets NEVER, EVER have trades for share amounts of 666 shares? EVER? I'd find that hard to believe IMO.
Also, why is a judge going to toss a case supposedly - right off the bat w/o really hearing much about it, when the very debt described in the case filing is shown right "on the books" of BHRT, including the most recent filed 10-K, JUST AS DESCRIBED IN THE LEGAL CASE? Why is BHRT "carrying" that debt to this day on their books if it's supposedly not owed and a "judge" is somehow just going to "toss it out"? Why would a judge do that?
THERE IT IS- EXACTLY as the legal case as filed describes the debt owed Brenda Leonhardt: $1.5 million of "subordinated debt, related party". It's right there plain as day IMO.
Here's the legal filing for the suit- and that's exactly how the debt and it's base, principal original amount is described (plus interest now of course- making the suit amount much higher). Why would this get "tossed" by some judge lickity split- when the debt is shown even on BHRT's own most recent SEC filings? Why? Makes no sense to me? They appear to owe it- so why do they not pay it then? They're paying lots of other people back- including Northstar LLC insider as one example. So why not this other debt? What made it "subordinate" to other debts owed? That's what a judge is going to look at very carefully IMO, from what one can read at face value from the suit as filed. Doesn't look like some slam-dunk "toss it out" IMO?
http://www.businesswire.com/news/home/20150107006044/en/Investors-Sue-Bioheart-Millions-Unpaid-Debt#.VUbuQo6rSt8
http://lawsuitpressrelease.com/wp-content/uploads/2014/12/Leonhardt-v.-Bioheart.pdf
LOL quote, " But no one disputes the fact that they're a nano cap
stock that currently has an active business plan that is making $$$"
BHRT does not "make money" or "$$$" and never has. BHRT takes LOSSES. BHRT has always (and continues too) spend FAR MORE than they ever take in as "revenues" or any other form of incoming cash and they do not self generate enough cash to come remotely close to self funding their own operations as a sustainable business. Continual losses and thus need to continually find more cash/money to make up for their LOSSES. The company has never, ever, ever had so much as ONE CENT of positive cash flow or ever "made money".
In FACT (since this is about FACTS)- despite their big talk now of "revenues" - they actually took a LARGER LOSS FROM OPERATIONS in 2014 than in 2013 and that's despite HACKING OUT OVER $500K from their R&D spending. Add that $500K R&D cut back-in, and their financial picture would be even more of a train wreck and that much more desperate.
From the most recent filed BHRT 10-K:
Notice the INCREASED LOSS FROM OPERATIONS in 2014 versus 2013 and they still ended yr 2014 with a pittance of $36K TOTAL CASH left to their name. They MAKE NO MONEY. They incur LOSSES, nothing else- and they make up those losses and survive via what's for all intents and purposes a continual, on-going, non stop use of toxic convertible debt financing deals- and that's what their own most recent SEC 10-K filing says and their other recent 10-Q and prior 10-K filings say.
Same 10-K, covering period of yr 2014 and updates to March 2015, PAGE 55:
"Research and Development
Research and development expenses were $66,420 in 2014, a decrease of $560,563 from research and development expenses of $626,983 in 2013. The decrease was primarily attributable to a decrease in the amount of available funds."
Same 10-K, PAGE 56:
"At December 31, 2014, we had cash and cash equivalents totaling $36,674; our working capital deficit as of such date was $10,957,443. Our independent registered public accounting firm has issued its report dated March 16th, 2015 in connection with the audit of our financial statements as of December 31, 2014 that included an explanatory paragraph describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern."
Same 10-K, PAGE F-34, showing they DO NOT "make money" but need to continually issue DILUTION SHARES (65 MILLION shares worth in less than the first 3 months of 2015) and they still continually ink "toxic" convertible debt deals- including qty-3 NEW ONES in just Jan and Feb of 2015 in order to keep survival cash coming in- pittance of cash like $25K at a time to keep them a "going concern" and out of insolvency.
PAGE F-34, most recent 10-K:
"Subsequent stock issuances
In January 2015, the Company issued 4,783,568 shares of its common stock in settlement for services, provided 14,299,567 shares of its common stock in settlement of $49,500 of outstanding convertible notes payable, and $2,981 accrued interest and 2,096,450 shares of its common stock for net proceeds of $16,118 from equity drawdown under the Magna Purchase Agreement.
In February 2015, the Company sold an aggregate of 1,443,656 shares of its common stock for net proceeds of $16,270. In connection with the stock sale, the Company issued an aggregate of 1,443,656 warrants to purchase the Company’s common stock for five years at $0.01127 per share. In addition, the Company issued 20,219,367 shares of its common stock in settlement of $132,500 of outstanding convertible notes payable and $2,520 accrued interest and 16,556,976 shares of its common stock for net proceeds of $135,645 from equity drawdown under the Magna Purchase Agreement.
In March 2015, the Company issued 6,185,432 shares of its common stock in settlement of $25,000 of outstanding convertible notes payable and $1,226 accrued interest. In addition, the Company issued 635,357 shares of its common stock as true up shares relating to the February 2015 equity drawdown under the Magna Purchase Agreement."
AND
"Subsequent financing
On January 7, 2015, the Company entered into a Securities Purchase Agreement with KBM Worldwide, Inc. (“KBM”), for the sale of an 8% convertible note in the principal amount of $38,000 (the “Note”).
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on October 9, 2015. The Note is convertible into common stock, at KBM’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.
On January 28, 2015, the Company entered into a Securities Purchase Agreement with Fourth Man, LLC., for the sale of an 9.5% convertible note in the principal amount of $25,000 (the “Note”).
The Note bears interest at the rate of 9.5% per annum. All interest and principal must be repaid on January 27, 2016. The Note is convertible into common stock, at Asher’s option, at a 47% discount to the lowest daily closing trading price of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal at 150%, interest and any other amounts.
On February 19, 2015, the Company entered into a Securities Purchase Agreement with Vis Vires Group, Inc. (“VIS”), for the sale of an 8% convertible note in the principal amount of $38,000 (the “Note”).
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on November 23, 2015. The Note is convertible into common stock, at VIS’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.
"
Why would a company supposedly "making money" be borrowing pittances of like $25K and $38K at a time using the most dilutive, desperation, share price crushing type of floorless, convertible debt, "toxic" financing deals one can use- having to give 45% to 47% share discounts out to a high interest rate lender? Why?
They don't "make money" - simply not true. They make LOSSES, continual LOSSES to this day and their own SEC filings say just that.
Quote Carlcarlos, "Asher, KBM, and Magma according to the CEO of $MMMW tried calling over 83 times since the beginning of the year to tried to sell their toxic poison."
(Just a note- it's MAGNA with an "N", not Magma. Just a name typo)
That is fascinating info to say the least. What's really interesting about it- is it jives 100% with what the Bloomberg financial journalist found and wrote about in a recent 2015 piece and that Bloomberg produced a video "short" piece about regarding "toxic" finance houses. That journalist stated the EXACT same thing as Carlcarlos appears to have validated here via the MMMW CEO provided info on this particular stock. EIGHTY THREE PHONE CALLS (or more, aka "cold sales calling" from toxic debt deal makers). THAT is stunning- but it 100% is in-line with what the Bloomberg piece wrote about and their investigative journalism team found.
http://www.bloomberg.com/news/articles/2015-03-12/josh-sason-made-millions-from-penny-stock-financing
Notice in the Bloomberg piece- it matches exactly what this MMMW CEO has stated. The "toxic" debt houses cold call- and they DO NOT EVEN CARE what business the company is in, they DO NOT EVEN CARE to look at the company financial statements, they don't even ask what product the company sells or care, etc. ALL THE TOXIC LENDER CARES ABOUT IS IF THE STOCK TRADES ENOUGH SHARES A MONTH- aka reasonable "liquidity" so that they, the toxic lender, can DUMP THEIR DISCOUNTED SHARES once in hand- no matter how low the share price goes. In fact- the lower the price is driven down in the eventual "death spiral", it is usually even better for the toxic lender and these "floorless" aka "convertible debt" deals.
Notice also in the Bloomberg piece- the "boiler room" (effectively what these hedge fund toxic lenders are IMO) they even have "salesman" who are really nothing more than 20 something yr olds- who take on pseudo names and pseudo personas to act and sound like "big money" guys, when all they are is cold callers, dialing CEO's of cash desperate companies who they've screened using software programs and all they care about is that the shares trade with reasonable liquidity and volume and they'll do a toxic debt deal with the company no questions asked essentially.
Fascinating. The Bloomberg piece even quotes a CEO who's stock had gotten crushed via use of toxic, convertible debt deals- and that CEO said no matter how low the share price went his phone was still ringing off the hook via these same hedge firms continually calling and offering to lend him even more money in their discounted "shares-for-cash" deals.
Amazing. EIGHT THREE plus phone calls trying to hook this CEO onto the "toxic debt" drug and easy cash money train. The "easy cash" route- but the one that is notorious for crushing the common shares eventually to dust, nearly every time and every place these deals gets done.
http://www.sec.gov/answers/convertibles.htm
The SEC's own warning about "floorless" aka "toxic" convertible debt. Their own words call it "toxic" and "death spiral" etc
LOL quote, "Why is the DeltaCell TM upgrading OCAT? "
"Upgrade"?? Where? It's a re-print of an existing article and contains no "upgrade"??
OCAT essentially has no analyst coverage for the most part- let alone any "upgrades" etc? Where?
A "trade mark", wow. How does that add value to a company or a stock? Anyone can file for a trademark on a name like "DeltaCell"- it's about a 10 minute form/piece of paper to fill out and mail in. What's it going to do to help the company pass large phase II and phase III clinical trials successfully? Has this "trade mark" gotten them any large funding? They can file "trade marks" for names till the cows come home- what difference does it make if they can't even fund their own key clinical trials and advance them as promised?
"trade marks", LOL. Wow.
Lanza says "CAUTION" in highly respected journal "NATURE". Peer review commentary in same article says sample size TOO SMALL to yet be meaningful- doesn't sound like any "slam-dunk" ole "done deal" yet to me??????
http://www.nature.com/news/stem-cells-pass-safety-test-in-vision-loss-trial-1.17451
The VERBATIM article, again, from the highly respected science journal, "NATURE"-
"A company that has spent more than 20 years trying to develop treatments based on embryonic stem cells is taking encouragement from small, preliminary tests of the cells in people with progressive vision loss. If the technique continues to impress in larger trials designed to assess its effectiveness, it could become the first therapy derived from embryonic stem cells to reach the market.
A study of four patients, published in Stem Cell Reports on 30 April1, shows that injection of retinal cells derived from stem cells is safe for people with macular degeneration. The report follows similar results from a trial in 18 patients that was published last October2.
Both studies were meant to assess safety only, and neither included a control group. In the latest study, conducted by researchers in Korea and the United States, three participants were able to read 9–19 more letters further on an eye chart a year after treatment — but two of the three also gained some ground in their untreated eyes."
MORE...
"“This bodes well,” says Robert Lanza, chief scientific officer at Ocata Therapeutics in Marlborough, Massachusetts, and an author of the study. “But I think we need to interpret this improvement cautiously until more controlled studies are done.”
The sample size is too small to warrant much excitement, cautions ophthalmologist Tien Yin Wong of the Singapore National Eye Centre. “At this stage it’s hard to say if the visual improvement will be sustained,” he says. “But it’s very promising.”
"
Ah, the ole UNTREATED EYE gained ground too "problem"?? THAT is where the big ole phase II's, the much more complicated, much broader patient cross-section, the ole control arm, the trials with a placebo arm can trip something like these micro tiny phase I's up every single time. The untreated eye showed improvement TOO?? Well SHAZAM, whata ya know? And a peer commentator- the SAMPLE SIZE IS TOO SMALL to "warrant much excitement"- SHAZAM again. Phase I micro trials are famous for this "problem"- it's common sense. What can one really know about a cross section of human beings when 18 or so people are involved and the company itself ran and controlled the entire "trial"- it's always the problem in the phase I stage. It's why most of the "promising" trials- if and when they fail, they fail big in the phase II portion. It's magnitudes harder than the tiny phase I's to pass the criteria.
https://www.michaeljfox.org/foundation/publication-detail.html?id=76&category=3
A CLASSIC phase II failure- of what was a "very promising" phase I "stem cell" so called "treatment" for Parkinsons. It bombed totally in phase II, when phase I just looked like such a "sure thing"- and everyone was disappointed. Classic example. FIVE YEARS they had in phase I and it was all super "promising" and "no safety issues" etc (SOUND FAMILIAR ?) Then a 71 person phase II, and it bombed. Out. Cancelled. Done. Over. And they had a big hitter, "Bayer Schering Pharma AG" partnered with um, it was no sluff, bush-league small timers doing this Phase II.
The "placebo problem" explained in great detail- why so many new candidates can't beat the ole placebo arm. It's one of the most perplexing problems in all of medicine and science:
https://nwpf.org/stay-informed/news/2015/02/for-patients-with-parkinsons-disease,-expensive-placebo-works-better/
Quote from article:
"The upshot is fewer new medicines available to ailing patients and more financial woes for the beleaguered pharmaceutical industry. Last November, a new type of gene therapy for Parkinson's disease, championed by the Michael J. Fox Foundation, was abruptly withdrawn from Phase II trials after unexpectedly tanking against placebo. A stem-cell startup called Osiris Therapeutics got a drubbing on Wall Street in March, when it suspended trials of its pill for Crohn's disease, an intestinal ailment, citing an "unusually high" response to placebo. Two days later, Eli Lilly broke off testing of a much-touted new drug for schizophrenia when volunteers showed double the expected level of placebo response."
All indications to me are that this OCAT stuff is YEARS and YEARS away from even a remote chance at an FDA or similar approval IMO- and $100 of millions worth of trial costs. I believe Lanza made that point clear when he was quoted near end of 2014 in a local MA newspaper- and said the phase II was supposed to start "hopefully by end of 2014" (it's now MID 2015 and no phase II is started yet) and he said year 2020 for a "chance at an FDA approval" or similar (paraphrasing).
http://www.telegram.com/article/20141014/NEWS/310149525&Template=printart
""We treated the last UK patients last month, and they also have not seen any safety issues related to the transplanted tissues themselves, either," Dr. Lanza said.
Advanced Cell now hopes to launch a 100-patient, phase 2 study in Stargardt's patients by the end of the year, according to Dr. Lanza.
A second, smaller phase 2 study in patients with age-related macular degeneration would follow, he said. Any treatment might not be ready for FDA approval until 2020, Dr. Lanza said."
That was dated Oct 14, 2014 and the END OF YEAR phase II DID NOT HAPPEN.
In his latest "talk", Lanza now said they "We're hoping in the coming months to certainly initiate our Phase II clinical trial." Oh, so now it's "hoping" and "in the coming MONTHS"??? How many MONTHS plural? 2, 4, 6, 8 months? End of 2015? Who knows what that vague a statement even means IMO? It's MAY 2015 now, but it was supposedly going to "start end of year" in 2014? Now it's we "hope in the coming months"??
Just keeps dragging out- just like the old ACTC, OTC penny days IMO. What's changed? Missed targets and a lot of "maybes" and "hopes" and vagaries is all I see? Oh, and tons of more money needed- which they do not appear to have at this point- including a botched/failed secondary that couldn't raise $62 million in a raging bio-tech bull market probably never before seen in the history of U.S. or world markets.
From their latest filed 10-K, PAGE 16:
"Other than our arrangement with Lincoln Park, we have no sources of debt or equity capital committed for funding. Recent attempts to raise capital in the public equity markets have proven unsuccessful, and we can provide no assurance that we will be successful in any future funding effort. "
If this is the supposed cat's meow, "slam-dunk" and medical miracle thingy and all- then why do they never attract any large funding? Never any high quality, non dilutive, high quality big time funding? Why is that?
Quote, "Sure but less and less amounts in toxic loans have been taken out."
What? What proof of there is that?
They, BHRT just did qty-3 new toxic, convertible, floorless debt deals in just early 2015 and have a whole slew of them coming due from 2014 and past and also inked a Magna 24 "credit line" which via it's various provisions, share discount, etc IMO makes it fall into the "toxic" and highly dilutive category.
What proof is there that BHRT is using less and less toxic debt? It appears to me that it's all they live and survive off of for all intents and purposes?
Most recent filed SEC 10-K, PAGE F-34:
"Subsequent financing
On January 7, 2015, the Company entered into a Securities Purchase Agreement with KBM Worldwide, Inc. (“KBM”), for the sale of an 8% convertible note in the principal amount of $38,000 (the “Note”).
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on October 9, 2015. The Note is convertible into common stock, at KBM’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.
On January 28, 2015, the Company entered into a Securities Purchase Agreement with Fourth Man, LLC., for the sale of an 9.5% convertible note in the principal amount of $25,000 (the “Note”).
The Note bears interest at the rate of 9.5% per annum. All interest and principal must be repaid on January 27, 2016. The Note is convertible into common stock, at Asher’s option, at a 47% discount to the lowest daily closing trading price of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal at 150%, interest and any other amounts.
On February 19, 2015, the Company entered into a Securities Purchase Agreement with Vis Vires Group, Inc. (“VIS”), for the sale of an 8% convertible note in the principal amount of $38,000 (the “Note”).
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on November 23, 2015. The Note is convertible into common stock, at VIS’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment."
So that's THREE new one's in 2 monts in 2015 right there plus the Magna credit line being tapped as those deals were being inked (see same page of the same 10-K)
And then there all these deals coming due in the same 10-K filing:
PAGE F-17:
"2014 Notes
During the year ended December 31, 2014, the Company entered into a Securities Purchase Agreements with Asher Enterprises, Inc. (“Asher”) or affiliates, for the sale of 8% convertible notes in aggregate principal amount of $334,000 (the “Asher Notes”)."
"The remaining principle balance as of December 31, 2014 was $151,000." (DUE NO LATER THAN AUG 2015)
"During the year ended December 31, 2014, the Company entered into Securities Purchase Agreements with Fourth Man, LLC. (“Fourth Man”), for the sale of an 8% to 9.5% convertible notes in the aggregate principal amount of $100,000 (the “Note”)."
"The remaining principle balance as of December 31, 2014 was $75,000."
(DUE NO LATER THAN AUG 2015)
"2014 Notes
During the year ended December 31, 2014, the Company entered into Securities Purchase Agreements with Daniel James Management (“Daniel”) for the sale of 8% to 9.5% convertible notes in aggregate principal amount of $135,000 (the “Daniel Notes”)."
"The remaining principle balance as of December 31, 2014 was $75,000."
(DUE NO LATER THAN Nov 30 2015)
"Magna Capital Group
2014 Notes
During the year ended December 31, 2014, the Company entered into a Securities Purchase Agreement with Magna Capital Group (“Magna”) for the sale of a convertible note in aggregate principal amount of $307,500 (the “Magna Note”) and an original interest discount (“OID”) of $102,500. $40,000 of the outstanding principal amount of the Convertible Note (together with any accrued and unpaid interest with respect to such portion of the principal amount) will be automatically extinguished upon the filing of the registration statement, following the closing of the Securities Purchase Agreement. In addition, $62,500 of the outstanding principal amount of the Convertible Note (together with any accrued and unpaid interest with respect to such portion of the principal amount) will be automatically extinguished if (i) the registration statement is declared effective by the SEC on or prior to the earlier of (A) the 120th calendar day after October 7, 2014 and (B) the fifth business day after the date we are notified by the Securities and Exchange Commission, or the Commission, that the registration statement will not be reviewed or will not be subject to further review, and this prospectus is available for use by Magna for the resale by Magna of all of the shares of our common stock issued or issuable upon conversion of the Convertible Note and (ii) no event of default under the Convertible Note or an event that with the passage of time or giving of notice would constitute an event of default under the Convertible Note has occurred on or prior to such date. On November 21, 2014, the Company filed its registration statement and on December 22, 2014, was declared effective. As such, the principle amount of the note was reduced by an aggregate of $102,500.
The Convertible Note matures on August 7, 2015 and, in addition to the approximately 33.33% original issue discount, accrues interest at the rate of 12% per year. The Convertible Note is convertible at any time, in whole or in part, at Magna’s option into shares of Company common stock at a fixed conversion price of $0.01035 per share, subject to adjustment pursuant to the “full ratchet” and standard anti-dilution provisions contained in the Convertible Note"
What indication is there that "less and less" of these toxic convertible are being used? The 10-Q is due out any time here- it will show if they inked any more deals in addition to the qty-3 already done at the start of 2015 alone.
IMO, I don't see any indication of "less and less" toxic debt being used? Again, IMO, the Magna line alone is about as "toxic" as it gets from all available info I could find on Magna and their reputation of how they "do what they do"
They, BHRT, got toxic notes thus "coming due" (aka will highly likely be converted- I don't think BHRT EVER pays these back, they always get converted to free trading, common share dilution at their STEEP discounts as far as I'm aware from all past SEC filings)- they have them coming due fromm essentially about right now to several in Aug 2015, Nov 2015 and all the way to Jan of 2016. And again, until the 10-Q gets released, there may be even more for all one knows- given they already did qty-3 in Jan/Feb of 2015 alone. They have a near never ending stream of "convertible notes" stacked in a cue all coming due one after another after another. It says so right there in those most recent 10-K statements. Pretty clear to me- the way I read it?
Again, IMO, the Magna line alone is about as "toxic" as it gets from all available info I could find on Magna and their reputation of how they "do what they do" That "credit line" is in place for 24 months, is for $3 million in dilution and BHRT stated they PLAN TO TAP and USE IT ALL in their filing statements (see SEC docs Magna share registration statements).
http://www.bloomberg.com/news/articles/2015-03-12/josh-sason-made-millions-from-penny-stock-financing
65 MILLION shares of common stock dilution already issued out in just less then the first 3 MONTHS of 2015 and a good chunk of it was to MAGNA and related to "tapping" the MAGNA dilution credit line. Due the math on what those shares got issued at- they're DISCOUNTED CHEAP due to the "true up" pricing and all the other intricacies written into that Magna deal. Again, what proof of "less and less" anything is there? Where? I don't see it?
PAGE F-34 most recent filed 10-K:
"NOTE 15 — SUBSEQUENT EVENTS
Subsequent stock issuances
In January 2015, the Company issued 4,783,568 shares of its common stock in settlement for services, provided 14,299,567 shares of its common stock in settlement of $49,500 of outstanding convertible notes payable, and $2,981 accrued interest and 2,096,450 shares of its common stock for net proceeds of $16,118 from equity drawdown under the Magna Purchase Agreement.
In February 2015, the Company sold an aggregate of 1,443,656 shares of its common stock for net proceeds of $16,270. In connection with the stock sale, the Company issued an aggregate of 1,443,656 warrants to purchase the Company’s common stock for five years at $0.01127 per share. In addition, the Company issued 20,219,367 shares of its common stock in settlement of $132,500 of outstanding convertible notes payable and $2,520 accrued interest and 16,556,976 shares of its common stock for net proceeds of $135,645 from equity drawdown under the Magna Purchase Agreement.
In March 2015, the Company issued 6,185,432 shares of its common stock in settlement of $25,000 of outstanding convertible notes payable and $1,226 accrued interest. In addition, the Company issued 635,357 shares of its common stock as true up shares relating to the February 2015 equity drawdown under the Magna Purchase Agreement."
I don't see any "less and less" of anything related to BHRT's use of toxic debt and dilution? None? All looks like more of the same IMO. AND, despite all that- they ended 2014 with a grand total of a pittance of $36K CASH left to their name. Total. $36K cash.
LOL quote, "This is one of those safe at any price stocks for a long time"
Oh yeah, right on. Cause it's ONLY lost 98% plus of the common share value to date. Heck, solid as a rock, LOL !! And some SEC violations and accounting problems and massive insider self enriching along the way just for the gravy on top.
Oh yeah, what the heck could possibly go wrong now- now that they've completed ONE tiny, tiny little trial in 15 years and $350 MILLION in sunk capital gone down the black hole, while diluting out to a literal 3 BILLION plus shares and to a share price of a literal 5 CENTS a share.
Oh yeah, it's "in the bag" for sure. Absolutely. I mean just a piddly ole phase II and then a phase III or maybe two if the FDA requires it and $100's of MILLIONS more in cash needed that they presently DO NOT HAVE, but heck yeah- just a "done deal" now. Right on. What could possible go wrong- since most clinical trials if they fail, fail in the phase II portion, oh yeah !!
LOL BS quote, "Premarket OCAT $7.80: Shares bought by Vanguard and Fidelity may be helping uptrend. Shorts finding it hard to find covering shares."
Vanguard and Fidelity don't buy some pittance of shares in the pre-market? What myth is this now? When an order gets electronically routed, as they ALL do nowadays, does it have a stamp or something on it that says "Fidelity" or "Vanguard", LOL???
The open short interest on this stock, as a percentage of float is noise level. It's nothing and has nothing to do with the share price weakness. LACK OF BUYERS and lack of a long term financing plan is probably what drives 90% of this right now IMO. They failed and botched their secondary. They live off a Lincoln credit card line which is pittance money compared to what it will take to fund and run a large phase II, let alone pay their overhead bloat and keep the lights on (what, like 6 or 7 "C" level managers for a 35 person total headcount company? It's got a serious case of TOP BLOAT IMHO, like a major serious case).
Lack of cash and the fact the phase II is sitting, going nowhere and it's now mid 2015 (remember the ole we hope to have it started by end of 2014?). That's all that's going on IMO- and why this still trades BELOW where it was as an OTC penny stinker, below where it was even 3 yrs ago.
From their just recently filed 10-K:
PAGE 16:
"Other than our arrangement with Lincoln Park, we have no sources of debt or equity capital committed for funding. Recent attempts to raise capital in the public equity markets have proven unsuccessful, and we can provide no assurance that we will be successful in any future funding effort."
PAGE F-7:
"The accompanying consolidated financial statements have been prepared in conformity with GAAP which contemplate continuation of the Company as a going concern. However, as of December 31, 2014, the Company has an accumulated deficit of $349.1 million, recurring losses from operations, and negative working capital which raise substantial doubt about the ability of the Company to continue as a going concern. The ability to continue as a going concern is dependent upon many factors, including the Company’s ability to raise additional capital in a timely manner. On a long-term basis, we have no expectation of generating any meaningful revenues from our product candidates for a substantial period of time and must rely on raising funds in capital transactions to finance our research and development programs. Our future cash requirements will depend on many factors, including the pace and scope of our research and development programs, the costs involved in filing, prosecuting and enforcing patents, and other costs associated with commercializing our potential products. Accordingly, management’s plans to continue as a going concern contemplate raising additional capital including the execution of an agreement for a $30 million equity line in late June 2014, of which approximately $18.6 million remains available as of December 31, 2014. There can be no assurances that management can raise the necessary additional capital on favorable terms or at all. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern"
RED, DOWN 25% on open ?? Holy cow !
The MM's just plastered it to .0051 again. Yesterday was .0049 for the AM low. Looks like 1/2 CENT is the range these MM's are aiming for here now, or what they'll pay for any sell order. Wow.
0.0065 / 0.0068 (23000 x 91000)
Then the MM brings the Bid back up to .0065 after hitting .0051 first thing- but it's only 23K shares on the Bid and all .005's below that. That means like $150 bucks left on the Bid and then it's .005's , or look out below.
Wow, this thing is just in free-fall it appears. Where are the buyers and buying pressure now that's it's in the 1/2 CENT range? Not a single rush of big buying for weeks and weeks, just the slow bleed down?
The lower this base price range goes- then the harder and harder and mega more dilutive it gets each time BHRT goes back to tap Magna or some other toxic, convertible debt lender which they from their SEC filings (even the most recent 10-K for example) appear to do on a regular, continual, on-going basis.
Looking pretty weak and pretty rough in here- might be another brutal Friday like some of the past ones IMO.
Well, that $150 bucks worth on the Bid is gone in the .006's now. It's all .005's now it looks like. What a drubbing this one is getting- these OTC MM's or just lack of buyers is really hitting it hard?
0.0056 / 0.0068 (320000 x 91000)
The 1/2 CENT range may be the new "normal" for a while it's looking like, more and more likely IMO.
Good post by another I-HUB member on toxic debt- a specific example of one company and how it's death spiral played out. Very well written and researched IMO.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=107118774
Look at the names- all the "usual suspects" were involved and even some other firms who's names I'd never seen. Might be good at some point to begin to compile and keep a running list on this board of all known "toxic" lenders that I-HUBers find in the SEC filings of the stocks they follow. Would be interesting to see how many names can be compiled.
Most have of course heard of:
Asher
Hanover holdings (I believe the "old" Asher name or associated firm)
Magna of course of new fame (see the Bloomberg article and video journalism piece on them)
http://www.bloomberg.com/news/articles/2015-03-12/josh-sason-made-millions-from-penny-stock-financing
Then I've heard of
KBM Worldwide
Daniel James
Fourth Man
Vis Vires Group
And now that post above by the other I-HUB member noted these names:
IBC Funds
Iron Ridge
Redwood Management
Tarpon Bay Partners
There's gotta be a whole lot more out there- try and list their names here when you see them. They will then come up in Google and other search results if people search "I-HUB toxic lenders" or similar terms and should bring them to this board- where they can get educated on "toxic", floorless convertible debt and the names to watch out for.
Might break even with it's old OTC share price, "maybe" except it sells off in to any strength, LOL.
They're living on the 100% dilution Lincoln dilution credit card "line" style financing- and no, it's not anywhere near enough to fund a large, phase II, FDA quality trial.
Lanza in his recent talk was very vague as to when the phase II would even start (as opposed to the 2014 interview where he said "he hoped end of 2014") now he just gave it the ole "we'd hope maybe sometime soon" (paraphrasing).
The "big news" again today barely bumps it and it sells off right into strength like clock work.
The most recent 10-K, PAGE 13:
"Our ability to become profitable depends upon our ability to generate revenue. We do not anticipate generating revenues from product sales for the foreseeable future, if ever. Our ability to generate future revenues from product sales depends heavily on our success in:"
and PAGE 16:
"Other than our arrangement with Lincoln Park, we have no sources of debt or equity capital committed for funding. Recent attempts to raise capital in the public equity markets have proven unsuccessful, and we can provide no assurance that we will be successful in any future funding effort. "
PAGE 43:
"
We cannot assure you that public or private financing or grants will be available on acceptable terms, if at all. Several factors will affect our ability to raise additional funding, including, but not limited to, the volatility of our common stock and the broader public equity market. If we are unable to raise additional funds, we will be forced to either scale back our business efforts or curtail our business activities entirely. As of December 31, 2014, the Company has an accumulated deficit of $349.1 million, recurring losses from operations, and negative working capital which raise substantial doubt about the ability of the Company to continue as a going concern. Furthermore, an emphasis of matter paragraph related to an uncertainty as to the Company’s ability to continue as a going concern has been included in the auditor’s opinion."
This little news "blip" today- what's it really change in the big picture at this point? They are YEARS away from commercialization in their own words. YEARS. And they need mountains of cash still to even attempt to get there- cash they presently do not have. The big "article" didn't move the needle, the "uplist" didn't move the needle (it's trading below where it did over 3 YEARS ago and is flat at best to its recent OTC levels), all the PR in the world so far has budge it in any meaningful way. I don't see this latest blurb making any big change here- just not seeing it. It sold off already into strength- not a good sign IMO.
Is this a 1/2 CENT stock now?
Seems like the new basing area is around .005 now IMO.
There's about $248 bucks worth left on the Bid at .0062 presently, and it's all .005's below that again, very similar to yesterday.
http://www.otcmarkets.com/stock/BHRT/quote
0.0062 / 0.0069 (40000 x 136000)
Look at today and yesterday- if one wants to sell so much as a few $hundred bucks worth- then the MM's take the Bid down to the .005 area, or as in this AM, even sub .005 to fill a sell order of a lousy few $100 bucks.
If one bought in the AM, say $500 worth, then changed their mind and wanted out, they'd have to take a 12% or 15% loss on the spread it looks like to get their sell order to fill- that's what today and yesterday's chart is showing.
It's building a base now in the .005 area, to .007 range tops now. Like this is not a one day down fluke- this looks like the new normal for the stock price now perhaps.
That blog thingy, maybe it will need to be re-written to the "VALUE OF 1/2 CENT" perhaps, no? If one can't get a $1000 sell order filled for more than about .005 or at most .006, then that appears to be the new base pricing IMO.
The stock has only traded a grand total of about $1,500 bucks so far today almost 3 hours into the trading day- and the MM's took it down twice hard- once to .0049 and then again to about .0051 on a single $600 or so sell order.
Where's all the volume and buyers rushing in here to get shares at sub ONE CENT, almost 1/2 a CENT? They're just not showing up that I can see? And that's after the big "conference call" and a lot of PR and what not? What gives I wonder?
"BID @ .0051??" Not only that - it posted a trade at .0049 ???
The day's trading range already on the I-HUB chart display and the OTC site itself has the range as .0049 to .0069 ?
0.0052 / 0.0066 (132000 x 172000)
http://www.otcmarkets.com/stock/BHRT/quote
Current Bid is only .0052 so the spread is cranked wide open again with these MM's. The only one showing Bid at .0049 is good ole BMAK. Like they took a spike down this AM all the way to .0049 ? Remember yesterday, the MM's took out all the .006's for a while and had it bidding in the .005s for quite a long period during the trading day- they only "painted the tape" on a very small trade or two right at the close to bring it back up end of day to .007, otherwise it spent most of the day down in the low .006s
These MM's are stepping all over this thing this week- and now the ultra wide spread mode too? The volumes have been below the daily avg- which from watching this for months is usually when the MM's "game it" and crank in the ultra wide spreads (it can swing +/- 15% or more in a blink, like one small trade of $100 or whatever) and then it flat-lines too. Yesterday is went several hours in the afternoon w/o really a single trade or at best, a few very tiny trades- it just sat, not moving almost all the last 2 hours of the day until moments before the close.
Where's the bottom? When an MM can just take it down to .0049 this AM, and the .005's on the Bid yesterday, I don't think I'm seeing any bottom yet, not by a long shot. Who knows if someone steps in and wants to sell a decent size chunk here- what would these MM's do with the price then? They might run this through a down-spike crusher like they did recently on the 20 million volume day that made the now all, all, all time low of .0045
What would the next all, all time low be? The .003's are next perhaps? Who knows IMO the way this is trading right now?
LOL quote, " I thought investors purchasing and selling quantities of "666" was normal. Lol. Ridiculous. I hope Mike is looking at tios forensically with help from counsel."
And what EXACT law is there against an order for 666 shares being bought or sold? Is this an imaginary FINRA or SEC law or what? What exactly is "mike" supposedly going to look at or whatever?
I don't think there's a single law (I Googled it) that says that buying a specific number of shares of a stock (666, or 999, or 1 share or 1001 shares or whatever) is imaginary "illegal" in any way, shape or form?
What EXACT supposed laws are being broken supposedly when a trade posted for 666 shares? So no other company in the entire history of the market (Apple, Google, GE, whatever) has ever had 666 shares traded and "printed" on the tape before? Really?
Funny IMO how everything related to this stock is supposedly "manipulation" or some vast criminal conspiracy or whatever? NEVER the fact that the company dilutes common share for all intents and purposes un-ending to the tune of 10's and 10's of MILLIONS of shares like it's nothing. Over 300 MILLION shares in a period of about 1 yr and 65 MILLION shares in less than the first 3 months of just 2015 according to PAGE F-34 of the most recent filed 10-K. (2 BILLION shares now authorized by the BHRT BOD)
NEVER anything to do with the company or how it's managed or its continual use of toxic, convertible debt financing and other dilutive financing constantly, or never its dire financial condition (see NUMEROUS GOING CONCERN WARNING in the most recent filed 10-K and their end of 2014 cash balance of a whopping $36K cash against about $11 MILLION in current debts)- never any of that reality? Always some supposed mystery "manipulation" scheme or whatever.
Fascinating IMO.
Maybe it's just more sellers than buyers and a lack of buyers? Maybe? Just maybe perhaps? Never the company's fault and the reality of their business and very poor financial condition (again, see their latest 10-K and their own auditor's opinion and WARNINGS as to their financial condition)- always some nefarious, conspiratorial outside "force".
Enterprise value is a pretty useless metric when attempting to "value" a company for the most part. And it certainly bears no relationship as to what the free market is valuing a company's shares at- not that I've ever seen or read or known about?
All one is really doing it taking market cap and in BHRT'S situation adding their current debts (I can find the 10-K page where that Fidelity computer "bot" scraped the $5.x million current debts from. While BHRT's total debts actually exceed $11 million presently) but it's just debt added to the present market cap as set by the current share price X the O/S share count- as anyone buying the company would have to acquire/pay off the debt also.
No one who does buy-outs that I've ever read about really looks at enterprise value in valuing a company. They'd IMO be much more interested in key things like CASH on-hand (which BHRT has essentially little to none at any given time, see latest 10-K, they finished yr 2014 with $36K total cash on-hand), things like positive cash flow(s)- which is cash thrown off from operations to fund and run and grow the business of which BHRT has none, things like debt of which BHRT has a lot when compared to their extremely poor cash position and poor liquidity situation- see their GOING CONCERN warnings in any recent 10-K or 10-Q filing, things like debt ratios, current ratios, etc.
Enterprise value - not of much value really. That Fidelity page or whatever it is- it's just a computer generated "bot" page using info scraped from the 10-K/10-Q filings and is just market cap plus debt typically or some variation similar to that.
No one looking to buy this company would give a rat's behind about the "enterprise value" IMO. The company has way to many other much more serious financial problems revealed by looking at their entire set of financials- not revealed via a simple glance at enterprise value.
Look at most stock market buy-outs or mergers, etc They're almost always done as multiple of cash flows, earnings, free cash, cash-on-hand taken into consideration, etc. A multiple of revenues, etc Not "enterprise value", let alone again- that "enterprise value" in any way, shape or form somehow indicates or dictates what the common shares should or would trade for.
My .0066 CENTS worth (or whatever it is today at this moment)
Bid just dropped to .0053 ??? HOLY COW.
http://www.otcmarkets.com/stock/BHRT/quote
0.0053 / 0.0065 (38000 x 107000)
The bottom is dropping out again it looks like and that's with volume picking up. Wow? No support or buying pressure at all it seems? The Bid is in free fall again- and it's only Wednesday. Friday's have been brutal lately- but this is getting punished again here mid week already it looks like?
A 1/2 CENT stock. It wasn't that long ago that the all, all, all time low was .0063 and that was one down spike day that was made in a late Dec trade (if I remember correctly, would need to check a chart) and it bounced off of that pretty quick if I remember right. But doesn't look to be the case here anymore? There appears to be no real bottom to this anymore at this point IMO? I guess it's just pure dilution driving it now perhaps? Not sure?
Wonder what gives- after the "conference call" and all? Where's the buying pressure even when the price keeps dropping?
10-Q will be out soon, maybe there will be more info in there?
Stacked to the Ask/Sell side again this AM, all in the .006's
0.0062 / 0.0069 (47000 x 177000)
http://www.otcmarkets.com/stock/BHRT/quote
Only about $1,500 bucks worth left presently showing on the Bid in the .006's and nothing really below that except ole BMAK showing a block of 10K at .0049
The way this is trading so far this week- this might be a 1/2 CENT stock again pretty soon IMO. Just no real buying pressure or large demand present at all here it seems- no matter how low the price is going.
Guess the next "big event" after the ole "conference call" will be the 10-Q coming out (about 1 week away I'd guess). Will tell how much cash is left on-hand, how much more common share dilution has occurred since the 10-K release in March, if they've tapped Magna again and for how much or if they've done any additional toxic, floorless, convertible debt financing deals since the "subsequent events, PAGE F-34 of the 10-K), how much is the total O/S share count now, etc
Should be an interesting read to see what the up to date financial picture looks like now. The lower this share price has been going- the use of convertible debt financing and Magna just gets that much more dilutive- so the 10-Q should be interesting IMO, given these recent, sustained low share prices and the very recent all, all, all time low of .0045 being made.
WOW, just hitting post and the Bid really dropped out? Only 300K left showing at .006 and then it's .005 below that, holy cow?
0.006 / 0.0065 (300000 x 107000)
http://www.otcmarkets.com/stock/BHRT/quote
May hit that 1/2 CENT level sooner than thought? That's only about $1,800 bucks left on the Bid showing now and then it's .005 below that, nothing in between and the Ask is dropping hard now too. Looking pretty weak here and it's only Wed.
LOL quote, "Within_a_few_days_they_could...see and count fingers
This is a SLAM-DUNK. "
SLAM-DUNK??? Uh, NO. The_number of people_in a tiny phase I (one totally controlled by the company itself and not blinded and w no placebo arm) is not even large enough to be statistically_significant yet.
MOST clinical_trials fail in the much larger, much more stringent_in terms of design requirements, much more difficult phase II.
The phase II that HAS_NOT EVEN STARTED YET_and for which OCAT presently DOES NOT HAVE ANYWHERE NEAR THE FUNDING YET to take to completion. The one that was supposed to start end_of_2014, and now it's almost mid 2015 and NO TRIAL has even begun.
Lanza being quoted from yesterdays big "talk" thing:
"We're hoping in the coming months to certainly initiate our Phase II clinical trial"
What? "Hoping"??? But this is a supposed_imaginary SLAM DUNK? "hoping"? Why wait if it's all_a_done deal supposedly?
Lanza again being quoted (local MA newspaper)
http://www.telegram.com/article/20141014/NEWS/310149525&Template=printart
"We treated the last UK patients last month, and they also have not seen any safety issues related to the transplanted tissues themselves, either," Dr. Lanza said.
Advanced Cell now hopes to launch a 100-patient, phase 2 study in Stargardt's patients by the end of the year, according to Dr. Lanza.
A second, smaller phase 2 study in patients with age-related macular degeneration would follow, he said. Any treatment might not be ready for FDA approval until 2020, Dr. Lanza said. "
From the latest filed (very recent) 10-K filing, PAGE 16:
"Other than our arrangement with Lincoln Park, we have no sources of debt or equity capital committed for funding. Recent attempts to raise capital in the public equity markets have proven unsuccessful, and we can provide no assurance that we will be successful in any future funding effort. "
That doesn't sound_like any so called_SLAM-Dunk to me by_any stretch of the_imagination??? Sounds like 5 YEARS minimum_and a whole bunch_of uncertainty at best. Peppered with "we_hopes" and "maybes" at every_step of the uncertain_way. Slam-dunk, NO IMO??
666 shares first trade, LOL?? Really? Now THAT is weird isn't it?
Are these OTC MM's dudes messing with people or what?
Someone would really post a trade for 666 shares at like .00665 and down, RED exactly 5% - which is an of amount like $4.42 bucks worth?
Gets more bizzaro by the day and moment?
LOL quote, "The Share Price Will Explode Rendering Lincoln Irrelevant "
What? Lincoln is ALL THEY GOT RIGHT NOW? How can Lincoln be rendered "irrelevant"?? ONE MONTH or two w/o being able to draw on Lincoln- and this little operation is for all intents and purposes BK, insolvent and LIGHTS OUT, close the door last one out and lock it.
From the latest filed (very recent) 10-K filing, PAGE 16:
"Other than our arrangement with Lincoln Park, we have no sources of debt or equity capital committed for funding. Recent attempts to raise capital in the public equity markets have proven unsuccessful, and we can provide no assurance that we will be successful in any future funding effort. "
Lincoln is literally their life line and only means of survival right now. HOW is Lincoln supposedly going to become "irrelevant", LOL? How? How would that work exactly?
Ask dropped to .0068 and BMAK is sitting hard on the Ask w/ a 10K share block at .007
Looks to me like it won't be going above that then today, IMO. Whenever BMAK parks that 10K share block, it's like a solid rock sitting on that Ask, and has been that way for months (pretty much all of 2015 so far that I've seen and observed)
The MM's look to be driving both the Bid and Ask lower again today- the usual dilution MM suspects (CDEL and BMAK both present)
http://www.otcmarkets.com/stock/BHRT/quote
0.0065 / 0.0068 (23700 x 50500)
Bid down now at .0065
Looks like these MM's want it in the .006's or below for now IMO. Dilution in play still here looks like to me. Volume is pretty low this AM, but BMAK parking hard on that Ask still makes it tough for any move out of this range from observing anytime in the recent past 4 plus months when BMAK shows up on that Ask w/ their 10K share block.
LOL quote, "OCAT Shorts leaning the wrong way? "
Open short interest on this stock- as a percentage of float or any other standard metric is still pretty much noise level at barely 1%. It's pretty much non existent. A micro change in the open short interest is supposed to mean what exactly?
When the open short interest gets to 5% or 10% or more of float- it's being heavily shorted. Right now, nothing much at all is happening- it's a non event IMO.
The main driver at this point- is Lincoln has probably taken a break selling dilution shares for a bit to let the price take a "breather" and recover a bit- that's been their pattern on this for a long, long, long time. When they get back on the sell-side with their flow of dilution shares it will put down pressure back on the Ask IMO, it's the typical OCAT pattern.
OCAT lives off of Lincoln dilution at this point and will for a long time to come- per their own wording in their own SEC filings. They got no other source of survival cash at this point. Simple as that.
BHRT market cap PER GOOGLE FINANCE is $4.34 MILLION. BARELY holding $4 million.
http://www.google.com/finance?q=bhrt&ei=6zU-VbmNLeeKjAKjoYCAAw
If the common share trading price dips "slightly" from where it closed Friday at .0067 then the market cap will go BELOW $4 million. Pretty clear IMO. (as in the very recent all, all, all time low price of .0046 made by the common stock shares of BHRT as traded on the OTC, the market cap would have been WELL BELOW $4 million. It actually would have gone slightly below $3 million at that point in time, a few weeks ago)
Some seem to think Google Finance publishes a "false" number for a stock/company's market cap, LOL?????
Barely a $4 million market cap against over $11 MILLION in current debt/obligations and ended 2014 with just $36K total cash on-hand (That's in the 10-K filed with the SEC. I suppose that is "false" too, LOL ???)
Market cap barely at $4 million now. WOW !
That's against debts of over $11 MILLION and from the last 10-K filing, immediate accounts payable of over $2 MILLION and only $36K cash left on hand.
The lower the price goes- the harder it's going to get to raise even pittances of cash using the toxic, convertible debt financing deals and/or Magna's dilutive credit line (the Magna line is based on a discount to market price, so it gets more and more dilutive the lower the share price goes- see the SEC filed registration statement about it)
From the most recent 10-K, PAGE 35:
"The extent to which we rely on Magna Equities II, LLC as a source of funding will depend on a number of factors, including the amount of working capital needed, the prevailing market price of our common stock and the extent to which we are able to secure working capital from other sources. If obtaining sufficient funding from Magna Equities II, LLC were to prove unavailable or prohibitively dilutive, we would need to secure another source of funding. Even if we sell all $3,000,000 of common stock under the Purchase Agreement with Magna Equities II,
LLC, we will still need additional capital to fully implement our current business, operating plans and development plans."
PAGE 36:
"The sale or issuance of our common stock to Magna Equities II, LLC at a discount may cause substantial dilution and the resale of the shares of common stock by Magna Equities II, LLC into the public market, or the perception that such sales may occur, could cause the price of our common stock to fall."
Even if they tap ALL of the Magna line (not likely IMO that they will be able to access all $3 million with these dropping share prices, could be wrong, who knows?)- they still state they'd NEED MORE MONEY via financing to implement their "plans" and "current business". That would mean to me- more deals with the convertible, toxic debt hedge type house like they already used in Jan and Feb of 2015 (names they've used already like Asher, KBM Worldwide, Daniel James, Fourth Man, the new one Vis Vires group, etc)
Pretty amazing IMO.
See what next week holds- that was a pretty brutal Friday given the "big conference call" and all that. The .006's again already, holy cow.
10-Q is the next big deal I guess. See how much new dilution, how low their cash is, what their debt is and immediate debts they owe like accounts payable and stuff, etc Should be interesting IMO.
LOL quote , "If anyone takes the 98% scenerio serious, you have to ask why?"
The common shares have not lost 98% of their value? MATH LIES? Really?
ACTC/Ocata went public in 2005 (TEN years ago) via the poor man's way- using a revese merger w/ the TWO MOONS KACHINA DOLL COMPANY OF UTAH and straight to the OTC.
From there- it's lost, more than 98% of the common share value. REALITY and a FACT.
When they merged on to the OTC as a public company- the shares traded for $5 a share in 2005.
$5 a share = 500 cents. Today's price is about 7.48 cents (adjusted for the R/S done recently; one must ALWAYS adjust for forward or reverse splits when looking at any stock's long term share price rise or decline)
Thus 500 cents - today's 7.48 CENTS = 492.52 / 500 = 0.985 X 100 = 98.5% loss to common.
Yep, the common shares since going public have LOST 98.5 percent of their value as of TODAY (Friday's closing price). Simple as that. The share pre R/S had diluted out to well over 3 BILLION shares and hit an actual 5 CENTS a share, again when the R/S is removed- which one must always do when looking at ANY company's historical stock performance.
The company has $350 MILLION in sunk capital and never so much as ONE CENT of ROI (return on investment). It's been a solid loser since day one- never once producing a return or positive cash flow and never a profit LOL, not even remotely close to that.
They've been financially distressed since going public 10 yrs ago and are financially distressed to this day- per their own Sr. Mgt and own auditor's "GOING CONCERN WARNINGS" plastered numerous, numerous places throughout their most recent filed 10-K.
Here's an article in the highly respected journal, "NATURE" that describes how they've been in financial distress and problems since essentially DAY ONE.
http://www.nature.com/news/stem-cell-research-never-say-die-1.9759
Some tid-bits from their most recent filed 10-K, aka RECENT evaluation of the current condition of the company:
http://www.sec.gov/Archives/edgar/data/1140098/000101968715000981/ocata_10k-123114.htm
PAGE 16:
"We will require substantial additional resources to fund our operations and to develop our product candidates. If we cannot find additional capital resources, we will have difficulty in operating as a going concern and growing our business."
"Other than our arrangement with Lincoln Park, we have no sources of debt or equity capital committed for funding. Recent attempts to raise capital in the public equity markets have proven unsuccessful, and we can provide no assurance that we will be successful in any future funding effort. "
PAGE 43:
"As of December 31, 2014, the Company has an accumulated deficit of $349.1 million, recurring losses from operations, and negative working capital which raise substantial doubt about the ability of the Company to continue as a going concern."
PAGE 46:
"We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Ocata Therapeutics, Inc. and Subsidiary as of December 31, 2014, and the related consolidated statements of operations, stockholders' deficit, and cash flows for the year then ended and our report dated March 16, 2015 expressed an unqualified opinion thereon and included an emphasis of a matter paragraph relating to an uncertainty as to the Company’s ability to continue as a going concern.
/s/ BDO USA, LLP
Boston, Massachusetts
March 16, 2015"
PAGE 13:
"Our ability to become profitable depends upon our ability to generate revenue. We do not anticipate generating revenues from product sales for the foreseeable future, if ever. "
Another article about the history and historical performance of ACTC/OCAT (nothing like a name change to try and run from the tainted past, eh?)
http://www.nanalyze.com/2014/04/some-problems-with-advanced-cell-technology/
QUOTE from article:
" Investors who would have purchased this stock when it began trading in 2005 would have already lost -98% of their investment."
Of course- all along as the common shares have creamed their average retail investor- the insiders have profited handsomely for years, literally becoming very wealthy in most cases. Very impressive IMO. Several have an amazing, seemingly uncanny "knack" for being able to sell/dump the free shares they receive into nearly every short term "pop" and spike in the price of the stock. Amazing sage like abilities to time the near perfect top of spike with sage like accuracy- all while the common holders languish with large losses and dead money as a raging bull market passed their dollars by.
Yes, that 98% loss to the common shares is all just a tall tale of fiction I suppose- all except for the factual MATH and reality part of it.