US Stem Cell Inc (USRM)

[Dragon Lady]

Aug, yeah- at these kind of price levels one can figure that converting 50 million shares (say to a convertible debt finance house like Asher or Fourth Man who they rely on) that number of shares "might" bring in about $500K in cash.

50 million X .01 = $500K
(so probably not even quite enough to just pay the "bonuses" to the 2 "employees", let alone the $2 million in accounts payable due last 10-Q and all the other common bills they often pay using common stock)

The bonuses to just 2 people this past yr were $300K + $500K = $800K total. In addition those same 2 "employees" also received very large base pay increases. Just 2 people of a 4 "employee" total company (last SEC filing showed 4 employees total) - just those 2 now consume $1,575,000 in base pay plus "bonuses" between the two.

And remember, those pay rates and bonuses were almost 1 yr ago now- meaning they're most likely about to get issued another raise and another bonus increase as they have for every year going back at least since 2012 (see the 10-K compensation table). They, the insiders via their Northstar LLC and other shares just approved all of the recent proxy vote items- several of which had to do with continued executive pay n perks programs. So I don't see any reason to believe these 2 are going to get another large pay increase and bonus come around June this yr (only 4 months or so away) as they have since at least 2012.

From last file 10-Q, 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 $1,575,000 for just 2 people- at a company that's so cash broke it finished the last qtr with $46K total cash left on-hand and issued out a bunch of common stock shares to pay common bills like "accounts payable" (see page 27, most recent 10-Q filing)

Here is a history showing the steep rise in not only these 2 "employee's" base pay but also their "bonuses"- all during a time period that the common shares have been continually, massively diluted and also as the common shares and company market cap have hit all, all time lows for the common shareholders. Sweet gig if one can get it IMO. Real sweet.

Page shot of the pay n bonuses going back to 2012, from the BHRT 10-K filing- big increases every yr, no reason IMO to believe that will change this yr? Why would it? One can see- the increases far outpaced inflation or even just "normal" increases like 5% or 10% annual or something that most employees have gotten in the type of economy we've been having- let alone being issued huge cash bonuses as the common stock has performed extremely poorly and sunk to all time lows- what correlation is there to mgt "performance" and the issuing of these large cash bonuses? These 2 "employees" of a 4 "employee" company have essentially more than DOUBLED their base pay rates since 2012 to 2014, as the company issues "going concern" and "liquidity warnings" in it's SEC filings- go and figure on that one?? I sure don't see or get that there's any connection to their pay versus the company and certainly not the common stock or any return on investment to the common shareholders??