US Stem Cell Inc (USRM)

[Dragon Lady]

Quote: "Taking care of legacy issues affecting the market value....interesting" ????

(AM Bid parked at .0126 after the "big conference call", guess all that vague and broad "stuff" hasn't had time to soak in yet??)

What does a 100% vague statement like that even mean? "taking care of legacy issues"??? What exactly is being "taken care of"?? How, when, by what means, etc?? Who can possibly even know if it means anything?

How bout a list of these supposed "legacy" issues "affecting the market value"?? The stock is down about 98% on HIS WATCH. He's the "legacy", NO??

When he as CEO has diluted the stock from something like 30 million shares in 2010 (I'd have to check a 10-Q of 10-K from June 2010 when he took over as CEO) to now 650 million plus fully diluted shares- and used endless convertible, toxic financing and pure dilutive financing, all via his mgt, what are the "legacy" issues supposedly "affecting the market value"??

Makes no sense to me? The "market value" is the value being assigned to the stock/company by the free market based on the actions of Sr Mgt and the financial health, or in this case, extreme lack of financial health, etc

Also, this is the same CEO that during a time when the stock and market cap hit near all time lows and loss of market cap (yr 2014)- took, along with one other person, of the 4 full time employees- too a huge set of cash bonuses for just him and one other person that total over $800K an also very large base pay increases- at a time when the company was and is for all intents and purposes, cash broke.

Just two people in this company of 4 total, now consume $1,575,000 annual in cash use to pay them- when the company finished last qtr for their own 10-Q SEC filing. The CEO is now taking over a $MILLION a yr out of this cash poor, convertible toxic debt financed company and has taken very large pay increases, including large "bonuses" during the years that the common shares have hit their all, all, all time lows.

What freaking "legacy" issues? What does that even mean? The issues are the current ones IMO. Forget legacy, how bout how the company is being run today- issuing out massive pay increases and bonuses to TWO people when the R&D budget/spending was hacked out to near zero in the past 1 yr. There's nothing "legacy" about that? That's on his watch, his doing, 100% his baby IMO.



The perks in pay got even bigger in better in 2014 for the TWO people who now are paid a combined $1,575,000 a yr from a company that finished that last qtr of 2014 in this 10-Q filing statement, finished that qtr with $46K total cash left on-hand, and also had cut out nearly the entire R&D (trials) spending budget to near zero- diverting the money off to cash bonuses, huge salary increases, etc

From the last filed 10-Q, period ended Sept 30th, 2014 PAGE 23:

"Employment agreements
On July 28, 2014, the Company’s Board of Directors approved the 2014/2015 salary for Mike Tomas, Chief Executive Officer, at $525,000 per year, beginning July 1, 2014 with an incentive bonus ranging from $150,000 to $500,000. In addition, the Board of Directors will grant Mr. Tomas options to be determined on or before June 30, 2015. The Company’s Board of Directors approved a bonus of $500,000 and options to acquire 10,000,000 shares of the Company’s common stock for ten years with four year vesting and a cashless exercise provision at an exercise price equal to the five day average closing price of the Company’s common stock as of August 1, 2014. The cash bonus may be paid in the form of a six month promissory note.

On July 28, 2014, the Company’s Board of Directors approved the 2014/2015 salary for Kristin Comella, Chief Scientific Officer, at $250,000 per year, beginning July 1, 2014 with an incentive bonus ranging from $100,000 to $300,000. In addition, the Board of Directors will grant Ms. Comella options to be determined on or before June 30, 2015. The Company’s Board of Directors approved a bonus of $300,000 and options to acquire 5,000,000 shares of the Company’s common stock for ten years with four year vesting and a cashless exercise provision at an exercise price equal to the five day average closing price of the Company’s common stock as of August 1, 2014. The cash bonus may be paid in the form of a six month promissory note."

That's not "legacy"?? That happening in the past 3 yrs on this CEO's watch. Look at what happened to R&D spending, very, very recently on this CEO's watch as he and one other person received very large "cash bonuses"- it IMO explains a lot about why the market performance and market cap is what it is. When one diverts all the company cash to pay "bonuses" and large base pay increases to just two people- while hacking out the R&D budget to near zero, IMO, that will have a huge effect on the perception of the company's "value" and the reality that no actual R&D or "trials" are taking place or being funded- which is the supposed entire purpose for the company to exist?

$500K (bonus) + $525K base + $300K (bonus) + $250K base = $1,575,000 annual pay to just two people of a 4 person company- one that just tapped Manga for intensely dilutive "financing" and survival cash, as they have little to no cash left in the company. What's "legacy" about that?? I don't get it?

Last filed 10-Q, PAGE 5 (look at how R&D budget got carved out to near nothing, while the marketing, general, admin expense line explodes- a good portion of that being "salaries and bonuses" to just 2 people in the company:



I don't personally see anything as "legacy"?? This has all been occurring in the past 2 yrs or so. They DILUTED OUT, DOUBLED the outstanding shares in just the past 1 yr alone- 100% "on the watch" of the present CEO. What's "legacy" about that??

From the last and most recent filed 10-Q SEC filing, PAGE 9:

"Fully diluted shares outstanding were 659,543,477 and 323,296,916 for the three months ended September 30, 2014 and 2013, respectively and 605,015,919 and 336,682,241 for the nine months ended September 30, 2014 and 2013, respectively."

That massive, massive dilution- that's as "recent" as it gets IMO. Nothing "legacy" about that to me?