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CASH FLOW is king.
Maybe it's time to take a step back and assess the situation. Today marked more good news for BIEL and bad PPS performance.
The "set-up to Fail Syndrome" is real. Harvard Business has published a lot of studies on this sad phenomenon.
Perhaps it is the promotion of "to the moon" performance like in KW's 7-step plan to retire tweet or others claiming that $0.20 is realistic, or that we are seeing "hyper increases in sales" that are setting BIEL investors up for failure. When the expectations are smashed, even though the news was positive, people lose hope that management is competent, or that other investors are trying to "pump-n-dump" the stock, and taking that they'll lose their hard-earned money to a scammer.
Perhaps if KW kept investors' expectations closer to reality she would build trust. And we should identify outlandish information posted on this board as such.
"Biel is in the hyper-growth phase of sales"
Really????
1st quarter 2021 sales increased 16% over 4th quarter, 2020.
How can this "double-digit increase" be construed as we're in the "hyper-growth phase"?
Last year Kelly Whelan tweeted her 7-step plan to retirement. Sales need to increase 65% quarter over quarter to hit her 7-Step Plan of shipping over a million devices per year. I don't see that happening every freakin quarter. Maybe a couple of quarters. Hopefully, on will be when, if, KT Health hits it out of the Olympic park
Kelly Whelan
@Kel928
1. Sign the deal for ORTHOPEDIC
2. Sign the deal for FOOTCARE
3. Get wound care channel partner moving forward
4. Ship 1.5 million devices in 12 months
5. Ship 2.5 million devices in 2021
6. Ship 4+ million devices in 2022
7. Sell company & retire
#theonly7stepplanineed
12:51 PM · Jan 21, 2020·Twitter Web App
".05c is ABSOLUTELY DOABLE, .10c is VERY DOABLE, .20c"
$0.05 = 1.25 billion market cap - OS 25 billion - Ha
$0.10 = 2.50 billion market cap - OS 25 billion - Haha
$0.20 = 5.00 billion market cap - OS 25 billion - Hahaha
$0.05 = 3.75 billion market cap - OS 75 billion - HaHahaha
$0.10 = 7.50 billion market cap - OS 75 billion - HahaHahaha
$0.20 = 15.00 billion market cap - OS 75 billion - HahahaHahaha
OS = 25 billion shares (rounded)
Fully diluted = 75 billion shares
NOT REALLY THAT "HeHeHeHe" FUNNY!
It is the noteholder's option to accept either cash repayment or convert the debt into a set number of shares.
Which convertible noteholders do you think will accept cash in lieu of billions of shares?
Read the Disclosure Statement Pursuant to the Pink Basic Disclosure Guidelines BioElectronics Corporation Annual report for the Period Ending: December 31, 2020 found at this link.
Section B. Debt Securities, Including Promissory and Convertible Note.
Beginning on document page 5
Ex-IM Bank $500,000 loan is reported as not convertible
Richard Staelin Revocable Trust $100,000 is reported as not convertible
Richard Staelin Revocable Trust $45,000 is reported as not convertible
Richard Staelin Revocable Trust $10,000 is reported as not convertible
Correct, the vast majority of the convertible notes are held by insiders (Kelly Whelan, Patricia Whelan, Dr. Staelin, etc.) and valued at over 21 billion shares of BIEL. It is the noteholder's option to accept cash repayment or to convert the note into shares of BIEL.
The value of the Notes held by non-insiders is small considered to the value of those held by insiders. Many of the non-insider notes are not convertible into shares.
"why would she NOW not want to do everything possible to see the stock price rise substantially."
My posts were mainly aimed at responding to the statement shown above. And to point out that KW will not do "everything possible to see the price rise substantially."
IMO, if KW wrote down the value of her ill-gotten notes, the PPS of BIEL's stock would rise substantially. Since she won't take this action, she is not doing everything possible to see the stock price rise substantially, rather she's keeping the PPS suppressed.
I disagree that the major "noteholders are dumping like mad." Why? Because the first step needed to allow the insiders to divest themselves of their notes and allow them to dump their equivalent 41 billion shares is to triple the current crazy AS from 25 billion shares to 75 billion shares.
When you see billions of shares being dumped, then you'll know that the insider "noteholders are dumping like mad". Until that time, it isn't major noteholders (a.k.a. Kelly Whelan, Patricia Whelan, a.k.a. insiders a.k.a. related parties ).
100% in agreement. RecoveryRx should, and may, become BIEL's flagship product.
Products requiring an Rx sell for more than OTC, and this product works.
What about Allay? I've not heard anything about that product in a long time.
Isn't there an old adage of investment advice, something like "Sell on good news, buy on bad"? If true, perhaps that is contributing to the current price action
I think that we all agree that KW wants to do everything in her power to see the stock price rise substantially. However, if we write-off the year 2020 as if it didn't happen due to COVID-19, she remains a rookie CEO. What does she really have in her CEO toolbox? I don't see much there.
I also agree that the 50% discounted convertible notes arrangement was, and is, "shady". I would even go further than "shady". The AS balance available to issue is 865,216,014, while the shares needed to satisfy Kelly Whelan's ill-gotten convertible notes totaled 20,224,643,240 at December 31, 2020. So, to satisfy KW's ill-gotten notes, the AS needs to be raised by nearly 20 billion additional shares. The same situation with her mom and other insiders that in total require another 21,511,296,207, as of December 31, 2020, so satisfy their notes.
I agree that Andy "Daddy" Whelan coached KW through the process, but regardless of that, the notes held by IBEX, LLC, are not "family". Kelly Whelan is the sole member of IBEX, LLC. Amazing to me that per the SEC filings, she made a "one-time, undocumented, and nominal investment, and never put any additional capital at risk", yet she owns the equivalent of 20 billion shares of BIEL. All she did was backdate some notes, and keep the note printing press going by extending the maturity dates for about 15-years.
Sadly, I think that your hope is unfounded when you stated "Let's hope she has much more compassion than AW for all the stockholder's who helped finance this company. We will see." Understand that 2/3rds of the value of BIEL IS HELD BY INSIDERS, they just haven't yet converted their notes, but the notes will be converted. If she truly cared about those that financed the company, she would calculate the value of her notes to a figure beginning with the date and amount of her "one-time, nominal investment", then carry forward the ROI that BIEL shares have produced, and write-down the value of her notes to this figure, minus 1/2 of the unpaid SEC fine. That seems more than fair to me.
I disagree that the first option assumes that KW "will act against her own best interest as a shareholder herself." In fact, I believe just the opposite. I don't think that KW would ever intentionally act against her own best interests.
Ethics aside, it is in her best financial interest to see BIEL's sales and profits grow. Don't confuse that fact, with her ability to convert her notes (along with PW), and take about 2/3rds ownership of BIEL by diluting our holdings. Said another way, she wins bigger by BIEL being valued higher, but either way, she will use her convertible notes in a way that's best for her and mark my words, it will be detrimental to us independent shareholders that currently hold 96.8% of all BIEL stock.
I clearly see two parties at play. The companies for which we provide OEM products and who we rely on for sales and marketing. They can increase the value of Bioelectronics.
The other being Kelly Whelan , who has the power through her, and her mom's, ill-gotten convertible notes, could at any time decimate nearly 2/3rds of the value of our investment.
Like it or not, KT-Tape is the major marketing partner.
KT-Tape's marketing prowess is clearly evident by there's success in taking simple kinesiology tape, branding it better than any competitor, and selling tens of millions of dollars of product every year, AND at a premium.
More evidence that KT tape will do a better job at marketing the ActiPatch.
Recovery Wave is their product name
ActiPatch is what our team chose
Realistically what name is a better branding?
I rest my case.
False (although I wish you were correct).
Why do you think that the company has the option to repay the debt and not issue shares?
The note is written giving the right to exercise the conversion of debt to shares to the noteholder, not the company.
Here is the actual language from the note:
Why do you believe that the noteholders will accept repayment with dollars versus shares?
Look at a recent conversion:
Note date 5/21/2018
Note Amount: $135,000
Conversion of debt to 629,856,000 shares on 7/27/2020
Value of shares on the date of conversion: $409,406
Value of shares at yesterday's close: $1,952,554
Do you really think that the note holder would accept repayment of the $135,000 + 20,000 interest versus $409,406 in shares, now valued at $2 million dollars?
If KW will accept cash in lieu of convertible stock, why hasn't she stated as much, or taken action and voluntarily removed the conversion option of the notes she holds? She's the sole member of IBEX, LLC and the President, CEO, Treasurer, and Executive Board Member of BIEL?
Investors need to value this company based on the fully diluted share count. Otherwise, IMO, they'll be in for a rude awakening.
I wonder if Dr. Oz would let KT-Tape on his show?
Could you show a breakdown of your calculation?
This is how I calculated 1.5 cents per fully diluted shares
FINANCIAL REPORT, AS OF 12-31-2020
24,134,783,986 OS
20,224,643,240 Kelly Whelan (IBEC, LLC) convertible notes
21,511,296,207 Other Related Parties convertible notes
65,870,723,433 Total OS, KW and Other Rleated Parties (fully diluted)
$1 billion sale price
$1,000,000,000/65,870,723,433 fully diluted shares = $0.015/share
Keep in mind that there is another $1.25 million in convertible debt held by non-insiders. The # of shares required to honor the conversion option is not disclosed.
Based on a $0.015 per share sale price, the payout would be:
$307,035,390 Kelly Whelan
$326,568,392 Other Insiders
$366,396,219 Public investors
$1,000,000,000 Total Sales price
So, for a "one-time, undocumented, nominal investment" (SEC filings) KW could walk away with $307 million dollars. This payout makes Bernie Maddoff look legit.
A sale for one billion dollars = 1.5 cents per fully diluted share
Does the OEM fabric supplier to Copper Fit advertise to the public? No, nor should they, it'd be a waste of money.
Does the OEM adhesive supplier to KT-Tape advertise to the public? No, nor should they, a waste of money.
The ActiPatch is an OEM product.
It would be a waste of money for BIEL to advertise to the general public, especially if the rumors on this board of a sale to KT-Tape, or the rumor that KT-Tape has an exclusive with BIEL.
I have no idea of KT-Tape's actual marketing plan for the Recovery Wave product. However, I'll be disappointed if KT-TAPE doesn't launch a major pre and post Olympic advertising campaign highlighting the Recovery Wave product.
KT-TAPE knows how to market products. And my expectation is that through their sales initiatives, they will take the value of our company higher than copper.
Management has been crystal clear. The advertising is the responsibility of the partners (i.e. KT-Tape, DonJoy, etc.).
IMO, KT-Tape will advertise the hell out of the Recovery Wave product. If KT-Tape can't successfully commercialize and sell this product, no one can.
Very smart. The 2nd best way to accumulate shares. The first is via the note convertible to shares scheme.
"Those that didn't sell at 7ish the first time will bail. " Very wise words IMO.
I think that BIEL's agreement with DJO emanated from Scott Specialities, not from DJO directly.
KT-Tape was a direct negotiation. From my understanding, negotiations with KT-Tape were killed by AW, but successfully resurrected by Keith Nalepka and Dr. Sree.
The financial filings actually contain a lot of information. IMO, an investor contemplating a long-term position should read every word, and take notes.
Posting financials with positive trends will indeed help the BIEL PPS.
Here are a few risks to investors that currently suppress the PPS.
- The Related Party Notes with the holder's option to convert the debt that they hold to 41,735,939,447 billion shares
- The AS is pretty much maxed out and may need to be raised to provide additional working capital.
- As of 12-31-2020, Current Assets were $425,167, while the Current Liabilities were $8,843,178.
- KT-Tape has an exclusive in their space. How much price pressure can KT-Tape exert on BIEL's OEM pricing?
- KT-Tape has an exclusive in this space. This limits our ability to expand sales.
- BIEL lost money in the 4th quarter, 2020, and for the entire year.
- KW and PW collected no interest in 2020. Will they in the future? Nearly $1 million in annual expenses could reappear at any time.
- Payment of the SEC fine is long overdue. There could be negative ramifications of this delinquency.
- Will other products, like Allay, gain FDA clearance?
- An inexperienced CEO, President, CFO, Treasurer, Executive Board Member.
Some of these investor risks that IMO are harming the PPS, could be mitigated with positive information and action from BIEL management.
I guess that the BIEL train has run out of fuel. Hopefully, our exclusive relationship with KT-Tape will provide the needed fuel. I am hopeful that KT-Tape can sell this product. If they can't IMO, no one can, but it is too early to tell.
IMO, GMA had a certain allotment of products to sell at a 50% discount, and the KT-Tape Recovery Wave product sold out. The Recovery Wave can be found in stock on KT-Tape's website, Amazon, and elsewhere.
I'm in 100% agreement. IMO, the FDA is overreaching as many other procedures involving the implementation of tissue are not under the FDA's preview.
10 KT-TAPE products were promoted on GMA. So far, only the WAVE is sold out.
Go BIEL
CHECK THIS OUT....The KTT 1/2 price sale on Good Morning America is great advertising”...Looks like BIEL is also running a 1/2 price sale! I ordered 2, so free shipping.
Thanks, BIEL marketing and sales team! Way to go.
https://gma-kttape.com
Sounds good to me too!!!
Is it just me, or does the 3-month chart look like someone is giving us the finger?
I agree with your assessment that "Whoever's loading doesn't do it every day but they are loading."
Knowing that someone is loading significant shares is helping keep this investment interesting.
Sounds good to me!
There must be some value in the shell of the company. Another company could reverse merge into CRGS to become a publicly traded company on the cheap.
We just heard from Donnelly and the party is over. I lost too much on this venture. But I did see some humor in their latest filing, which reads "This report contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934"
Great post. Thanks for sharing.
Anyone suffering from depression or anxiety should give serious consideration to TMS = TRANSCRANIAL MAGNETIC STIMULATION.
Someone very close to me suffered for 20-years from major depressive episodes. They tried numerous types of treatments. Many different antidepressants, numerous counselors, CBT, etc. Nothing worked. Then they discovered and tried TMS, and their health was restored.
If USRM is in the TMS business, they are providing an extraordinary treatment that heals the patient versus treating the symptoms. This seems similar to stem cells in that it heals the core problem versus treating symptoms.