US Stem Cell Inc (USRM)

[Dragon Lady]

"So you're saying the market thinks Bioheart has no value?"

What's the market cap as of today, maybe $8.4 million.

What's the debt? Look at last 10-Q

If the company were to be liquidated what would be left?

The net shareholder value is negative. When the market cap does not even cover current debt, what does that mean? The basic accounting equation taught in ever accounting 101 class for example is:
Total Assets - Total Liabilities = Shareholder Equity

They also have no positive cash flow, I don't think they've ever generated cash, which only leaves dilution or borrowing. Adding to the effect that negative shareholder equity is more than just an accounting entry in this case, IMO.

Last 10-Q filing, PAGE 4:
Total stockholder's DEFICIT: (10,409,070)
It's a negative number.

When your entire market cap is $8.X million for a public traded company- that's the "value", total, the market is assigning to them. It is what it is. It's not what I think- it's basic math and numbers.

They don't own any assets essentially- like real estate or plant/equipment and so forth. They lease a relatively small facility and own some computer and lab equip and that's about it as far as I know.

Last 10-Q filing, PAGE 4 balance sheet: "total assets" are listed at $224,220. Yep, $220K, not millions, but thousands of dollars. Same page, current liabilities are listed at $9,759,137. (almost $10 Million) Just reality of the math.

Most of their key patents have lapsed from reading their SEC filings and they really haven't invented much of their own tech, IMO- they really just license a lot of it (the Lipicell becomes Adipocell, for example, because of a license issue- they didn't invent "Adipocell", they license it), so what's really there as assets? I don't know?

Last 10-K filing, PAGE 3:
"Bioheart has successfully completed various trials using adipose stem cells. In August 2013, the Company canceled its license agreement with the Ageless Regenerative Institute for adipose derived stem cells called LipiCell. Bioheart has entered into a term sheet agreement with Invitrx to License their adipose derived stem cell products. Bioheart has changed its adipose derived stem cell product name to AdipoCell. "

So they didn't invent "Adipocell" or even own it- they just license it.

What's there if they were to liquidate that would add value to the market cap assigned by the market place right now, and off-set or pay their debts? It's not what I "think", it's just the math and financials the way I see it. At this low a market cap, against their present debt - I just don't see much "value" left being assigned to whatever constitutes "the company". My 2 cents.