Increased expenses EXCEEDED "revenues"-
Essentially negating/offsetting any gain in "revenue" was a massive increase in their SG&A (commonly known also as "marketing, general and administrative" costs/expenses), basically more than doubling from same period, Q-1, 2013 to Q-1 this period.
BHRT defines them, in the 10-Q, PAGE 28:
"Marketing, General and Administrative
Our marketing, general and administrative expenses primarily consist of the costs associated with our general management and clinical marketing and trade 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."
From the balance sheet page 5, 10-Q:
Marketing, general and administrative, Q-1 2014: 838,329
Marketing, general and administrative, Q-1 2013: 370,533
(meaning the SG&A expenses alone, more than doubled from the same period, Q-1, a yr ago.)
That's an increase of 838,329 - 370,533 = 467,796 / 3 = $156K increase per month, yr of yr for the same period, Q-1.
Or, 838,329-370,533 = 467,796/370,533 = 1.26 X 100 = 126% INCREASE in "marketing, general and admin expenses" yr over yr.
Gross revenue was about $76K per month. Thus, the increased "spending/expenses" negated, IMO, any new "revenue".
Revenue per month $76K
New costs/expenses $156K per month
They did't gain a thing, IMO, in terms of adding cash, or cash flow- as the explosive costs increase, off-set and negated any "revenue" brought in, IMO.
Also interesting to look at, IMO is some of these "shares used to pay for whatever expense" type deals. Look at just some of them from APRIL- and look at the share price they work out too- it's pretty amazing. As, IMO, it's big dilution, and a big pile of "in the money shares", that IMO are gonna hit the sell block at some point here, and put huge selling pressure on, and/or cause more share price manipulation or jerking all over the place of the share price as some of these "big boys" look to "unload" and probably go "short" and "other" things- speculating, my opinions only of course.
But look at some of these deals- and what they got their shares at. 10-Q, PAGE 23/24:
In April 2014, the Company issued an aggregate of 3,839,832 shares of its common stock for services rendered valued at $43,250.
$43K/3.89 MILLION = .01. ONE CENT A SHARE. Almost 4 MILLION shares now "hanging out there" at a penny "cost" to whoever is holding them. Think they want to flip um at maybe 2 cents and double their money? Wouldn't surprise me, IMO.
In April 2014, the Company issued 5,263,315 shares of its common stock in settlement of related party advances of $100,000.
In April, 2014, the Company issued 1,002,808 shares of its common stock in settlement of common stock subscriptions of $50,000
In April 2014, the Company issued 274,681 shares of its common stock as settlement of six months accrued interest on the Northstar note obligation.
In April 2014, the Company issued 18,383,774 shares of its common stock for service rendered valued at $180,511.
This one's the WHOPPER IMO. So what price are these shares?
180K/18 million = .01. Yep. Yes sir. Someone, for "services rendered" (we don't even know who, or what that even is?), they just got 18 MILLION shares at 1 CENT a piece. If they want to, decide to unload- they can start now at .027, and even if it crushes the share price, say to .015 as they sell- they're still maybe coming close to doubling their money, at least making 75% return or at least a 50% return or better? Maybe a double if lucky- and they get 2 cents on um? THAT is easy money IMO. But share crushing to the common holder. THAT is "dilution", IMO.
In April 2014, the Company issued an aggregate of 4,793,268 shares of its common stock in settlement of $67,500 convertible notes payable and $2,700 accrued interest.
67,500/4,793,268 = .014 (NOT BAD, pretty big "in the money" at even 2.5 cents or so. Some selling of 4.7 million shares maybe? Even if they can unload um at 2 cents, they make about $95K. That's about $30K profit on a $67K investment. Not too shabby for "short term" money- savings accounts don't pay that, eh)
In April 2014, the Company issued 11,918,181 shares of its common stock in connection with the exercise of warrants. Proceeds received was $136,000, of which $6,000 during the three months ended March 31, 2014."
How bout these warrants- what did they get their shares at, for ponying up $136K?
136K/12 MILLION shares basically = .01. BINGO. Yep- ONE CENT AGAIN. They're IN THE MONEY LIKE FLINT. 12 MA MILLION shares hanging out there, just waiting to go on the sell block- maybe even mixed in with some shorting/short covering? Who knows? Can't be good IMO, to what's gonna happen to the share price long term. At some point, someone will unload those 12 MILLION shares, and they will want to make more money on um, than that $136K, that's their entire "game". They don't pony up $136K not to make a return and a BIG ONE, in the biz they're in. They want 50%, maybe 100% return on their coin, IMO.
Dilution is real, and has real consequences IMHO. These shares, many being at 1 CENT, maybe even less in some cases- it's gonna bury the common shareholder, share price even more IMO, over the long term. That's why it's a sub 3 cent stock today IMO, and why many have seen many other, highly diluted stocks (think recent proxy- increasing to 2 BILLION the shares available)- many seeing 1 penny or even fractions of a penny, being not uncommon as the dilution continues unabated, at a furious pace, IMO.
Fully diluted shares for BHRT just doubled in about a one yr period, to now about half a BILLION shares outstanding. Go back to like a 2010 or so 10-K, and I think it was like 20 MILLION shares outstanding. That is staggering IMO. It crushes the common shareholder out of existence long term- sub 3 pennies is ultra low, but zero is the bottom, and it touched .063 already (6/10ths of 1 cent), just towards the end of 2013. This continual dilution, can't be good IMO, and I think will further punish the share price in "cycles", as these huge blocks of cheap shares get "flipped" for profits and people "cashing um out" to get their "pay/payment".
That's my 2 cent opinions. Happy trading of course, and good luck.
AI
