US Stem Cell Inc (USRM)

[Dragon Lady]

Bioheart has not seen $1 a share since 2009, almost 5 yrs ago now. That's also approx when their "flagship" product trials- the phase II/III FDA, registered, U.S. based trials essentially ended, stalled-out, for all intents and purposes.

The company had far, far more employees, far less dilution, etc. I see no indicator that would ever return this stock to the $1 range IMO. The massive dilution over the past 5 yrs, that alone, makes it near impossible IMO.

Yet, in 2009, they were already in deep financial trouble (finished the yr with about $75K cash on balance sheet of 10-K) and all the following in the 10-K. And IMO, things have only gotten worse since 2009, and never recovered and the stock price has been in steady decline ever since, reaching the 2 penny range or so, with .063 cents being the low. I see no reason how/why it would now reach the "dollar range" today? What has changed or gotten better? It's all worse if anything, IMO?

From the 2009 10-K, labeled, "For the fiscal year ended December 31, 2009"- the last yr it ever saw the "dollar range" per share:

PAGE 1:
"The number of shares outstanding of the registrant’s Common Stock, $0.001 Par Value, as of February 28, 2010 was 20,489,444."
TWENTY MILLION shares. (today it's at about 500 MILLION outstanding, and a recent increase to available of 2 BILLION shares)

Yet, were serious financial problems (like the present, "liquidity" issues for example, or "financing" problems) new to BHRT as far back as 2009?
PAGE 43, 2009, 10-K: SAME "financing" used today, IMO (massive dilution/dumping shares-for-cash deals). Just selling shares/diluting for survival cash. Nothing has changed, IMO, and it's 5 yrs later.
On July 1, 2009, we issued 140,850 shares of our common stock and warrants for the purchase of our common stock at an exercise price of $0.85, for aggregate proceeds of $100,000.

On August 17, 2009, we issued 255,640 shares of our common stock and warrants for the purchase of our common stock at an exercise price of $0.74, for aggregate proceeds of $158,500.

On August 21, 2009, we issued 363,210 shares of our common stock and warrants for the purchase of our common stock at an exercise price of $0.64, for aggregate proceeds of $192,500.

On September 2, 2009, we issued 320,000 shares of our common stock and warrants for the purchase of our common stock at an exercise price of $0.73, for aggregate proceeds of $195,200.

On September 14, 2009, we issued 9,500 shares of our common stock and warrants for the purchase of our common stock at an exercise price of $1.25, for aggregate proceeds of $9,880.

On September 15, 2009, we issued 82,700 shares of our common stock and warrants for the purchase of our common stock at an exercise price of $1.60, for aggregate proceeds of $110,002.

On September 16, 2009, we issued 33,110 shares of our common stock and warrants for the purchase of our common stock at an exercise price of $1.81, for aggregate proceeds of $50,000.

On September 17, 2009, we issued 6,100 shares of our common stock and warrants for the purchase of our common stock at an exercise price of $1.97, for aggregate proceeds of $10,000.

On October 1, 2009, we issued 30,490 shares of our common stock and warrants for the purchase of our common stock at an exercise price of $1.97, for aggregate proceeds of $50,000.

On October 2, 2009, we issued 31,000 shares of our common stock and warrants for the purchase of our common stock at an exercise price of $1.94, for aggregate proceeds of $50,220.

After all that, what else happened in 2009?
http://www.bizjournals.com/southflorida/stories/2009/01/12/daily50.html?page=all

"Bioheart delinquent on loan, bankruptcy possible"
""We’re trying to position the company to survive from profits from revenues," Leonhardt said (sound familiar??), referring to the company's historic reliance on lenders. "We believe we can be cash-flow positive by the end of March." (THAT statement was made in 2009. CASH FLOW POSITIVE? How did that turn out?)
David J. Gury, the former CEO of Nabi Biopharmaceuticals, resigned from Bioheart’s board on Jan. 7 over a disagreement with Leonhardt. According to Bioheart’s SEC filings, they did not see eye-to-eye over the requirements of a public reporting company to meet its regulatory requirements.
That left Bioheart one board member short of NASDAQ requirements. It has 180 days to regain compliance.
Leonhard said he had no disagreement with Gury and that Gury later withdrew the critical letter he sent, but he still resigned for personal reasons.
On Jan. 5, Nicholas Burke, BioHeart’s VP of financial operations, notified the company that he would resign, effective Jan. 16, but would continue consulting with the company.
Bioheart CFO and Principal Financial Officer William H. Kline resigned on Jan. 2. The company has not announced replacements."

So, there were mass departures already in Sr. Mgt and BOD by that point. Even a dispute over, apparently, SEC filings meeting "regulatory requirement"? (kinda sounds serious IMO)

PAGE 51 (2009 10-K)
"Marketing, general and administrative expenses were $2.2 million in 2009,"
What's amazing about that IMO, is BHRT for Q-1, 2014, with 4 full time and one part time "employees" left now, just racked up about $850K already in SG&A expenses for just Q-1, 2014, meaning they're tracking to exceed the 2009 level- back when they had a full staff of Sr. Mgt like VP's and finance and many other full time staff, were running FDA phase II/III big trials, had a TGI whatever they were marketing, etc. That's a stunner IMHO. Wow.

PAGE 54, 2009 10-K
"On February 25, 2009, we received notification from The NASDAQ Stock Market of its determination to discontinue our NASDAQ listing effective February 27, 2009. We have engaged a market maker for our common stock and our application for quotation of our common stock on the Over-The-Counter Bulletin Board was approved by FINRA."

Then, after all that, the present mgt team took over (what's essentially all the "key" players of the present mgt team) on about Jun 23rd, 2010. A stock chart will show the share price then to be about .30 cents a share then, perhaps a peak of .40, maybe .50 cents tops or so, and it's been nothing but in steady decline, essentially ever since then, again, reaching as low as 1 cent recently, to around 2 or 3 cents a share as of recent.
http://www.prnewswire.com/news-releases/bioheart-announces-mike-tomas-appointed-ceo-97013034.html

The stock since this CEO took over, on a chart from the day of taking the CEO position, shows the stock to be down about 93% since that point in time (down about 98% or more since the IPO date).

The 10-Q from that period, around June 2010, shows the following:
"As of June 30, 2010 there were 27,327,705 outstanding shares of the registrant’s common stock, par value $0.001 per share."

Now diluted to about 500 MILLION shares under "the watch" of this present mgt team. 27 MILLION to 500 MILLION, and neither the MARVEL or REGEN or any major advance in an FDA phase II/III trial reaching completion or nearing submission to the FDA to even be considered for "approval" has occurred that I can see or discern, IMO?

Cash on that 10-Q, PAGE 39, dated 2010, was:
"At June 30, 2010 we had cash and cash equivalents totaling $4,872. However, our working capital deficit as of such date was $11.1 million. Our independent registered public accounting firm has issued its report dated March 31, 2010 in connection with the audit of our financial statements as of December 31, 2009 that included an explanatory paragraph describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern."
About $5K CASH LEFT and the GOING CONCERN WARNINGS were in place. What's changed today? What would drive it now to the "dollar range"? They are in as bad, if not worse financial shape now and highly diluted, but the stock back then was only .40 cents or so (NOT a "dollar" or "dollars)? Not seeing it, not at all?

Also, they still appeared to have "somewhat" of a staff- but were still having BOD departures and major changes in SR. mgt, etc
PAGE 31:
"on July 9, 2010, the Board of Directors of the Company appointed Catherine Sulawske-Guck as Chief Operating Officer. Ms. Sulawske-Guck has served as the Vice President of Administration and Human Resources since January 2007. She joined Bioheart in the full-time capacity as Director of Administration and Human Resources in January 2004 after having served in a consulting capacity since December 2001.
On August 13, 2010 Peggy A. Farley resigned as a director of the Company."

And for all this "performance" (diluting to 500 million shares, no real, major phase II/III FDA trial progress IMHO, the common shares being essentially wiped out to pennies or less, etc)- for that, the two "key people" on the "team" left now, just got substantial pay increases, as in a tripling essentially, of their overall compensation packages, and a 50% gain in their base salaries and a "bonus" tacked on too boot. See most recent 10-K, yr ended 2013 filing, compensation table, PAGE 71

Amazing IMO. Why would it go to the "dollar range" today? I can't see a single catalyst, or real difference in their financial or other conditions, from clear back in 2009/2010. They were already in deep financial and other troubles then IMO and that of their SEC filings and auditor's opinions, and it's only gotten worse, more diluted, stalled trials, etc to this day, IMO (and a share price collapsed from .30 or .40 cents, to now 2.5 cents or so). What would possibly change all that now?

Oh, and for a while "back then", they actually had some sales or a salable product- in the TCI whatever. But it, like it seems like everything else, just some how ended up going nowhere essentially and amounted to largely nothing for them, IMO.

"dollar(s) per share"? Not seeing it, IMHO. Just can't see anything remotely possible to make that "quantum leap" possible, nothing.