US Stem Cell Inc (USRM)

[Dragon Lady]

Revenues didn't even come close to making a dent in the massive rise in their expenses/costs, or need for on-going "toxic financing" or use of "common shares for payments" for all sorts of their expenses. The qtr loss was actually greater than yr-over-yr, same period last yr.

Most recent 10-Q, PAGE 5:

Marketing, general and administrative, Q-1 2014: $838,329
Marketing, general and administrative, Q-1 2013: $370,533

The rate of increase in expenses, far outstripped the revenue, gross after cost of sales.

Most recent 10-Q, PAGE 11/12 (show net loss from operations, Q-1 INCREASED 2014)

"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, 2014, the Company incurred an operating loss of $620,923 and used $257,762 in cash for operating activities. As of March 31, 2014, the Company had a working capital deficit (current liabilities in excess of current assets) of approximately $11.1 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 operating loss for the same period, 2013, 10-Q, PAGE 5:
(531,084)

Thus, despite "revenues", their operating loss increased from $531,084 Q-1, 2013 to $620,923 for Q-1, 2014. That was due to a huge increase in the SG&A expense/cost line entry of $838,329.

They're not even remotely close to being cash-flow positive.