Make money? How? A perspective on this latest, highly dilutive, toxic, convertible debt note amount versus the salaries and bonuses of just two people in the "company":
The total note is maybe $300K ($307K, but it also has up to $30K legal fees deducted, see bottom of 8-K text, and may from the first lines, be only maybe $205K cash purchase price to BHRT depending on if BHRT meets all the clauses). So lets say for a $300K note, with 1 cent shares handed out (about 30 MILLION in dilution minimum, probably a lot more given Magna/Hanover's reputation upon some basic reading about them)- lets say BHRT gets about $270K tops to put in their bank after all the fees and what not, on the high side. $270K total.
Just Tomas and Comella got $500K and $300K bonuses handed to them this last 10-Q, respectively. That's $800K annually right there.
Tomas now got his base salary boosted to $525K a yr and Comella got a boost to $250K per yr + their $500K and $300K in promised bonuses for this yr. See last 10-Q filing, PAGE 25
So just those two, not even considering rent/lease, insurance, legal, accounting firm, a couple of employees, computer/phone, and all the other basic overhead expenses to run this tiny micro-cap: just these two's salary and now "perk" cash bonus are:
$525K + $500K = $1,025,000 for Tomas, yep, $1.025 MILLION per yr
$250K + $300K = $550K for Comella, over a cool half mil per yr
That's $1,025,000 + $550,000 = $1,575,000 or $1.575 MA MILLION consumed in cash, just to pay two people at a company of maybe 4 or 5 people total, and near zero cash at any given time per their own SEC filings, going concern warnings, and all the rest.
$1,575,000 / 12 = $131,250 PER MONTH it takes just to pay these two
PERSPECTIVE: They just did a convertible debt note w/ steeply discounted shares that will be highly dilutive and more than likely put huge downward selling pressure on the common stock for an amount that essentially doesn't even pay Comella's BONUS for the yr ($300K).
Not "trials" getting funded, not research and development, not funding a growing business or whatever- it won't even put a dent in paying the two people who keep getting ever bigger salaries and now ever bigger bonuses.
That note is about TWO MONTHS, maybe 2.5 months salary/bonus for two people - that's all it "buys" for the company. A couple of month's or so cash use, tops at their burn rate IMO. The 10-Q showed: "incurred an operating loss of $1,078,971 and used $507,059 in cash" or the 6 months ended June 30th, and that's before the $800K in bonuses plus salary increases were now tacked on.
They took on a toxic debt note for an amount not even making a dent in the salaries, let alone the bonuses of two people. THAT is "perspective" in my opinion. Add in all the other expenses, just burn rate of the business- and they had to take on a note with these horrendous terms, for a few month's at the most of cash? Really?
Well, not good IMHO. I don't see any phase II or III level "trials" getting "funded" or progressing or whatever because of this "finance deal". What happened to the "big funding" from some "deep pockets" firm and all (the supposed reason for the increase to 2 billion shares??)- that's been talked about endlessly? It never materializes. Just more dilutive ASHER type deals continuing, but only with worse and worse terms IMO. That's all I see. Not "making money", they never make any money. They spend and lose money and take losses and dilute- that's about all I ever see or have seen? All while the 10-K and then every 10-Q after it says the major trials are "ON HOLD FOR LACK OF FUNDING". But the bonuses and salaries aren't "lacking funding"- no.
That's my 2 cent take on it.
Here's from the later lines in that 8-K on this note deal- it's even better:
"The Purchase Agreement contains customary representations, warranties and covenants by, among and for the benefit of the parties. The Company also agreed to pay up to $30,000 of reasonable attorneys' fees and expenses incurred by Magna in connection with the transaction."
So on top of steep share discounts, front end potential discounts and all the rest- BHRT even has to pay this Magna "attorney fees" and "other fees", nice. Real sweet deal.
It's hard to tell, as I stated, how much actual cash BHRT will even bank when this is all said and done, but will owe the face value of the note from the way it reads, and at 12% interest, when people and businesses can get loans for maybe 3 or 4%, and even junk debt is maybe 6% or 8% tops in this zero interest environment. And Magna will have the right to convert those shares to free trading at any time they want from my read on it, 1 cent, or less, shares essentially. 30 million plus, low priced shares on the selling block at some point.
Amazing IMO.
AI
