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One thing is certain...
Wallstreet gives 0 respect/credit to the management here!
New stats
2.6M raise
5M loan
2M in btc sales
Approximately 10M cash raised last couple of weeks. 130 btc worth 8M. Nearly 6000 miners (s19s)
Recent build outs of plants is 275-300k usd a Megawatt. Last btc miner purchase of s21s was 300 north of 1M usd.
Even with 10M liquid and 8M bitcoin, with the losses just from operations and paying executives/staff...this only buys time.
Need 10s of millions minimum to even make a dent in the space. If not 100s of millions.
I do expect a jump in the stock. Lots of new warrants now at 2.93 a share. The company will want/need the cash and the investor will want to cash some out.
Wouldn't be surprised to see double digits by year end.
Revenue estimate: 24 btc mined at 65k average - 1.56M. Avg btc was 53k first quarter and 65k second quarter. Between 130 (end of July) - 160 most of the quarter btc holdings. Not sure how that is calculated. Say 150 btc times 12k gain. 1.8M gain to offset operating costs
1.8M gain + 1.56M mined + Misc interest income on loans. Roughly 3.5M to offset expenses.
Payroll last period 1.2M
Depreciation 2.4M
Mining costs (was half of revenue) so 800k this period
Operating costs, sales, misc another 1.5M
Impairment charge 1M
Totals costs est 7M
Revenue and offset gain: 3.5M
Loss for quarter: 3.5M
Got a loan for 5M
Sold 35 btc for 60K to raise 2.3M
130 btc Holdings remaining 7.8M
Need major capital raise for operations and expansion. Btc mining got expensive in a hurry with the halving dropping rewards. Company was forced to sell nearly 25% of all holdings in a single quarter to maintain operations.
Building a 75mw plant is roughly 300k a MW
Build out will be 22M to maximize the capacity, without miners to occupy it.
May look rich in equity on the balance sheet and btc holdings, but this company needs cash in a hurry. Days are numbered..
"Unfortunately not much hope here"
"Instead maybe read between the lines. The stock is headed towards the grey market. Delinquent filings with no signs of that changing. So it’s either get what you can or pray for a miracle. Praying for a miracle in trading just means you deserve to lose your money"
These posts appear to be coming from the old owner of this ticker, when the stock hit .0001
Par value.
48 hours later...
+200%
Sell some bitcoin, stop lending out money, and start buying back the stock.
It was pretty obvious someone was selling and buying the same shares.
LMFA executives receive 50% and 55% bonuses compared to annual salaries while the stock is down 83% in 3 years and 90% in 5 years is another reason investors don't buy the stock.
They pay themselves on the backs of investors who are not reward...
Will it change? Or stay the same?
Interesting quarter.
Based on an average btc price of 67,500 for the period, even though btc mining was reduced due to the halving and moving mining perations...still reached 3M in revenue for the quarter. Revaluing btc holdings as additional income, btc had an average price of roughly +14,000 higher than last quarter. Times 160. Another 2.2M
Q3 should come in around 5.2-5.5M
Operating costs last quarter were about 4.3M
Estimated earnings for the quarter 1M
Added to last quarters 1.9M for the first 6 months of the year they have a GAAP profit of roughly 3M in 6 months. Market cap is less than 10M. Which is less than the amount of btc held in treasury.
Valuation does not take I to account the partnership of the new 15MW plant. The 5000+ miners that, according to online reports, thebs19s they have still operate at a profit when btc is above 54,000/coin.
The stock price is really limiting growth for thus company. Management is looking for a loan to acquire additional miners because at current levels, raising 5M would dilute ownership 50%.
When they raised 35-40M in 2021 they had nothing going on. Zero bitcoin. Zero miners. Some interest in Borqs (that went defunct). And a SPAC in the works but not yet allocated to. Company to bring public. However, valuation was nearly 100M at one point. 10x current levels.
They keep pointing out their company is worth $15-$16 a share book value. Announcing a share buy back and allocating a couple million to buying back shares would go a long way with this micro cap.
Microstrategy borrows 100s of millions to buy btc, why can't LMFA borrow or use some treasury to buy back it's own stock?
At least they could shoot for an offering down the road to expand. They just don't have any interest in the company from investors.
So they continue to chug along...printing money...paying themselves...with the miners investors funded 3 years ago...who are down 95%
Can they turn it around? Can they be trusted?
Time will tell.
Cheers.
Think of RSHN as the "third party" between the actual shrimp business and it's clients. It's essentially the licensing party of the technology.
Unfortunately, filings are delinquent and the previous owner is still tied up in bankruptcy. Until the previous owner can settle and accurately report RSHN to the SEC..there will be no movement.
The new owners need 2 things. Wrap up the disaster previously, both recently and in the past..and provide a clear vision for the future to the public and shareholders.
It's apparent what is holding them back...
Around the holidays looks promising..if not..2025.
Accumulating...
Looks like whatever is left of HeliosDx is HDX Now. Pretty sure it's already changed URLs in the last 6 months...
https://hdxnow.com/
Bankruptcy hearings are still proceeding..
https://bkdata.com/business-bankruptcies/orlando-florida/08-25-2023/ashley-sweat-02035
Still expecting stock movement come holidays...
Looks like this one has finally taken a rest. Their sponsoring SPAC LMFA is getting it's turn now with a run up - w/ICU ownership in common, several million in warrants, 45M in assets, including 11 million in BTC.
Looking forward the the new 15MW btc mining facility announcement due any minute to test new 52w highs.
Both ICU and LMFA could easily be 3-5x these levels by year end.
Cheers!
Expecting news on the 15MW plant and the shift of 3000 miners to the site. BTC production was probably at a minimum transitioning the miners to the new site. Estimating maybe only 10 were mined last month as they made the transition.
I suspect the plant and mining operations update will be combined in the same PR within the next few trading sessions.
The ICU position for the company is also looking very good. Their recent offering funds their commercialization rollout of recently approved products.
Both RS have been completed. Seems like the bottoms were established earlier this year.
See how they perform in the upcoming weeks/months ahead..
Cheers.
Loving this action. Been holding both lmfa and icu after the reverse splits.
Remember, lmfa is a major stockholder in icu common and hold millions of the warrants (that have quintupled) through their spac that brought this public initially.
Cheers.
This is interesting after reading about it.
1.5M loan given to a company in live stock and furs at a good APR
2.5M loan given to a company to build out a btc hosting center.
4.5M in revenue last Q at 53k a btc. After halving Q2 maybe 58 btc minted. Still around 4M at 68k a coin average. Two new loans say 12% on 4M. Another 40k a month in interest income. Starting June....3000 miners operating at cost at 15mw plant, loan secured with company assets...
Balance sheet appears to have 2M in liabilities. Nearly 40M in assets. Consisting of btc (11M) btc miners (20M after depreciation), AR in notes to the above mentioned companies, and Misc.
Through their SPAC they took ICU public...and looks like they own nearly 6 million warrants still and about 3% of the company in common shares. ICU has moved from $2s to nearly $8 this week. Warrants moving much much higher as well...
Furthermore, it appears the CFO and CEO purchased options at $30 a share here. They spent maybe 100k usd each on those rights.
Lastly, the RS and recent run in stock price has it at or above $5. Making it available for more funds and traders...
They plan on closing on a 15mw plant by month end. Sights on a 60mw plant. Each mw is about 275,000 usd to bring online. So maybe 12M usd is needed for 60mw. Maybe new s21 miners to occupy it. Their offering in 2021/2022 was around 35M. They eventually got delivered and running about 6k miners. 3k of those are going to the 15mw plant in July. What would go in the 60mw? Hosting? Own miners? Unclear.
Own miners they would need another 20M for purchasing them and working capital. With the new plant, 30-40M capital raise minimum to expand btc operations. With a 12M market cap? Doesn't sound possible. Unless shares rise to the 30 range for a 70M cap. Then it's more than reasonable.
Seems to be alot of meat on this bone. Unfortunately the street isn't convinced on the management, excessive operating costs primarily salaries and SGA, may have a sour taste in its mouth from the last raise, the -90% return, and enriching themselves on the execution of the plan vs rewarding shareholders that provided the funding.
Maybe they'll look to increase shareholder value this time. They have been living very well since the miners went online...but will they take it to the next level? History has said they do not...but it may be time.
I suspect a capital raise this year after a stock run up.
Management has to show some returns to investors to be rewarded with another hefty raise. Maybe they redeem themselves this year..
Yes...when a time period as long as an entire quarter lapses with no communication and filings are not complete and behind...with a stock price sitting at .0002
When you are not communicating or doing the filings...
Doesn't get worse than that.
Delisted? Not a single share has traded for days..
I would expect quiet for some time. If they are working on Finra issues (it was already announced previously that it could take up to 9 months) that is still several months away. It seems like the RSHN objective would be to resolve those pending issues before 2025. Until then, I wouldn't expect any movement in the stock before the holidays. Maybe late October - December (Q4) you see some type of activity.. There is no point (at this time) for anyone to sell...you get nothing for them since shares are near worthless. No point to buy either...just flat lined with no volume and no interest.
Get used to it!
I wouldn't expect anything until the holidays...
Previous owners still hold prefer B shares as of 12/31. Filings showed they only sold preferred A.
So they are still well in the mix!
It appears there was an order of confirmation for the Chapter 11 plan as of today, on 4/22/24. Meaning both the debtor and creditors are bound to the plan and other debts have been discharged. Let's see if they pump it now...
During bankruptcy proceedings, the bankrupted individual/company will have to list all assets, liabilities and income for review. This allows the courts and parties that are owed the debts to have a clear picture on they debtor's ability to pay on their defaulted obligations.
It is in the best interests of the old owners of RSHN to show the RSHN shares owned and worth very little and not liquid, as well as thrm generating little income during this period. If the RSHN common position was valued in the 100s of thousands or more, the court and parties that brought legal action against the debtor could ask the court to force a sale of the securities to pay back their debts. Being at .0002 and the total value of common being under $50,000 with very little liquidity, it shows the courts and parties who filed lawsuits it is not a viable asset for liquidation to pay down what is owed. It is my opinion that the recent filing had to be documented for the courts to review what the debtor received in the sale for the voting rights preferred A shares in RSHN. Could be wrong...but sounds right based on speculation. Considering the proceedings are still ongoing. Doubt the ticker moves higher before 2025.
The new filing probably has more to do with the previous owners than the current owners. They are still in bankruptcy court and this could have been a requirement of the court to review. It looks like the preferred A shares were sold for $175,000 in cash and securities. Previous owners retained their common shares (240M?). Current market value still invested from previous management is 72,000 USD in common. I don't remember if there is preferred B shares. If there is, previous owners are still holding those as well...and if so...are they really gone..?
Running hard eh? lol Highly doubt this moves before Q4 or 2025. If anyone notices the 2023 year end report being filed or the Q4 quarterly please post the link. We will see how bad old management left it at year end. I am pretty sure after Q1 reports for 2024, which should be by July...that should do it for the old management's financial performance and involvement (?). Possibly also showing the details of the transition of ownership and share ownership. 2024 Q2 report, due before October (?) should have the clean set of books showing what was inherited by the new owners By then...if Finra is being pursued in the background currently, maybe have a meaningful update by Fall. I don't see this holding any gains on short term pops...if it ever gets one again. Until the filings are done and the state of the company/ticker/financials is explained in black in white.
Still several months away...
It's been a month since the new CEO was appointed. So to expect a significant turnaround in 30 days when the stock and ticker has been beat down to .0001 by the old owners over the last 2 years is wishful thinking.
Thankfully, Congress is currently conducting an investigation (as well as supermarkets such as Walmart) pertaining to tainted shrimp imports that account for 40% of all shrimp being brought into the United States from foreign countries. In this instance, it is India.
Hopefully RSHN can ride the curtails of this situation and provide examples to Congress while it is being reviewed, as well as these Supermarkets such as Walmart, about the possibility of producing shrimp on a grand scale domestically.
Only 1% of all imported Shrimp is inspected in the US, vs. 50% in Europe. So the US is a target to distribute product with antibiotics, which is forbidden by the FDA here in the States.
Any sanctions or shift from India would create a massive gap in supply and demand of shrimp in America. Using the patented farming system licensed by RSHN could capture a massive amount of market share in the coming years to satisfy the needs of the American consumer while reducing reliance on foreign markets that are using poor working conditions, while violating human rights, and are shipping tainted, low quality, contaminated products that are arriving on kitchen tables across America.
RSHN could not ask for a better macro set up to succeed.
It will just take time to develop if management realizes the opportunity and follows the correct avenenues to present RSHN solutions for an ongoing problem nationwide.
***India accounts for roughly 2.5B usd annually of the shrimp imported in America.
https://www.nbcnews.com/news/indian-company-sold-contaminated-shrimp-us-grocery-stores-whistleblowe-rcna144082
Another problem solved growing shrimp through RSHN platforms.
It appears the offering never got "qualified". That is no surprise. The old owners and management never got it to the finish line.
9 months...so around August or September last year. The same time they filed bankruptcy, stopped reporting, filing, and updating the offering with the SEC during the Finra fiasco.
Shareholders are just impatient because they dealt with the sh*show for the last 2+ years. RSHN changed hands maybe a month ago?
If you don't have patience for all of 2024 and into 2025...I'd probably bail.
Well...Q4 is going to be a complete disaster and will need all the information from old management. Everything moved into bankruptcy courts and tied to...assuming...personal guarantees.
So it is not necessarily new ownership RSHN shareholders are waiting on...but old ownership and the mess that lead them to late 2023 bankruptcy and liquidation.
Probably alot to clean up and clarify in that cluster f* for YE 2023 year end and Q4 filings.
Didn't they file Q2 ending 6/30 and Q3 ending 9/30 to become current?
Isn't/wasn't Q4 ending 12/31 due since it's April to remain current...?
I don't really feel like I am pumping...just stating my opinion and observations/thoughts reading online what is published and reported/filed.
Do I feel the corner has turned, the page has turned, and the last failed chapter is behind RSHN for now? Yes.
Any guarantees of a brighter future? None.
But the door has at least opened that leaves the disaster of HeliosDx behind with possible share appreciation based on a variety of levels in the near and long term possible.
Especially at these levels. IMO
At the present time, there has been 8M invested from accredited investors. 2.5M in loans from government funding to get them where they are today, at RC.
Par value is pegged at .001 to issue new shares of RSHN.
Current market cap 3.2M
If the licensing is in fact a "work around" until Finra's green light and there is indeed a merger pending that being worked out...
Common sense says this will settle around .001 near term, minimum.
Just a matter of time.
Their business through RSHN is licensing their patented invention. The execution is getting current shrimp producing companies to use the invention, as well as new players.
Generate revenue by selling the use of their design and establishing some sort of market penetration.
They need to get an agreement/order in place to license it now. From an outside party. Report the deal, what it pays, and what it entails.
That is the next step.
You could be barking up the wrong tree on how or what to value here. My understanding is the value is in the technology and the licensing of the use of that technology.
For example
A shrimp farming business in Texas generates 300,000 pounds of shrimp per year. Through a licensing agreement with RSHN, RSHN agrees with the shrimp farming business that they can use their patented platform design to increase shrimp production. The business implements the new platform and production increases from 300,000 pounds a year to 1,000,000 pounds per year. In return for the usage of RSHN's patented design, they pay a licensing fee. Either it be a one time fee, monthly, quarterly, annually, or a several year deal.
So I think the right question is....if you are the shrimp farming business generating 300,000 pounds of shrimp per year at $4 a pound and generating a top line annually of 1.2M, how much would you value/pay in a licensing fee for a new technology that would increase your production to 1,000,000 pounds and improve your top line to 4M annually?
The "arm" of which RSHN provides in this organizational structure seems more like technology company that provides that technology to aquaculture businesses, and in particular shrimp.
Another example:
McDonald's. They don't necessarily sell just hamburgers. The franchise owners do, but the company itself acts more like a landlord. It owns the land and leases the use of that land. Their menu/processes/name are licensed to the restaurant owners that sell the hamburgers. The operator of the restaurant keeps the profit the restaurant generates, and McDonald's gets their licensing fees and lease payments.
Recent news articles written in early 2024 and late 2023 discuss the over supply from Ecuador as a cause of depressing shrimp prices. Also mentioned is the ramp up from India. It is making it very difficult for farmers to turn a profit when foreign lower quality frozen shrimp flood the markets.
With the newly licensed platform through RSHN, the system increases harvesting rates up to 7x, adding drastically to the top line. From a cost standpoint: it requires a fraction of the space, is less labor intensive while operating in a more controlled environment (reducing risk of disease and lost harvests).
For the everyday shrimp farming operations, licensing through RSHN the new technologies in the space can offset pricing pressures from foreign markets and return them to profitability while providing sustainable, local, fresh shrimp to the consumer.
Interesting...
It appears the current method being utilized are individual ponds or tanks on sites that host the different stages of growth. As they grow, they are gathered up manually and transported from one pond to the next. The process seems labor intensive and a bit "clunky" from the videos online. There is also a need for a vast amount of space for the ponds or "tanks" for this legacy operation.
Using this platform, and based on your description, the stages of growth are sort of layered in cartridges in a way and stacked on top of eachother. The harvests are pulled out (say at the bottom), the stage to be harvest next drops down, and so forth through the stackable cartridges, and the newly created space starts a new batch to begin the process.
So it all makes sense from an operational standpoint. Not even considering the science promoting the highest growth rates.
It is basically taking a traditional legacy method in doing something and condenses it, simplifies it, stream lines it, while requiring a fraction of the space, producing at a much higher rate, in a more controlled environment.
Pretty much a no brainer for the industry (or any industry) if it can be executed properly.
It appears the findings are a study conducted between the two companies using Fuel Tech technologies as a method of monitoring and maintaining oxygen levels to promote faster growth. In doing so, the shrimp are always developing in a highly efficient and optimized environment resulting in faster production and providing much higher/faster harvesting rates.
It seems like a proof of concept. To suggest harvesting can jump from 2x a year to 4x a year vs. standard aquaculture methods will raise some eyebrows across the industry.
One would assume partnerships would, in theory, start with existing players already in the industry (or new participants) as an attempt to increase production at current or new operations. Once proven successful and with its compact design, an effort would occur in an attempt to scale.
There seems to be alot of intellegent people behind the scenes here. The science and the concept seem to be in place. Whether or not the execution is there has yet to be determined. However, they do have some success in the past getting concepts off the ground, obtaining capital, and growing revenue significantly in a short period of time.
It does appear the foundation is in place and some "value" at these levels. From the design, developed prototype, patents, proof of concept study, and the team developing it. Much of the work appears to be done and accomplished in the start up phase. They have touched on the 8M raised and 2.5M in government programs that helped get them where they are today. So that part is done.
By adding RSHN and the licensing deal is their avenue to go public, raise capital, and create awareness for the next step in a broader public eye.
I am surprised I am saying this....but a good entry point on the stock IMO because the next PR may be a "doozie" and trips may be a thing of the past.
An agreement with Fuel Tech and RSHN should be contracted and reported through a Fuel Tech or joint PR to connect the companies officially in the manufacturing of these aquaculture systems.
That should help keep things moving. SP is still hovering at decade long lows and trading well below newly adjusted par value.
Online articles state that aquaculture has started to pop up in many states over the last several years in the United States. To date, it has yet to be scaled successfully.
It appears their new platform shows promise with the amount raised, grants/loans received, and the resources used to acquire the patents to protect their discoveries.
Only time will tell...
Farming/agriculture, new technologies, and sustainable food production have tremendous tax benefit, access to subsidies, grants, loans, resources, and other advantages both on the state and federal levels.
Shrimp by volume is far and away the leader in seafood consumption globally. With their small size, this patented platform can be marketed and sold for local distribution.
If it can me done with shrimp, what about crabs, lobsters, clams, mussles...?
The idea is interesting. Execution has yet to be seen or determined. A very nice upgrade though for RSHN shareholders IMO.
The market and investors are beginning to agree.