US Stem Cell Inc (USRM)

[Dragon Lady]

"Bioheart Strengthens Management Team with Appointment of Martin E. Schmieg as President of Vetbiologics, Inc. "

I wonder what cash they're gonna use to pay him with? The recent $800K bonuses were paid as "promissory notes" the cash was so low, finishing last qtr with $46K cash against over $2 million in just the most immediate types of debt, "accounts payable" (see most recent 10-Q SEC filing, pages 4 and 5)

Also, in that same, most recent 10-Q filing- they, BHRT are still relying on "related party notes" as in borrowing from themselves basically to pay bills and so forth. Then, in later parts of the same 10-Q, issuing common shares to pay off other "related party notes" which makes no sense to me?

Also, they, BHRT issued many PR's in the past announcing "big hiring" type deals or "teams of experts being brought on" etc- only to never be heard about again IMO, or never seeming to match the later "employee" count" as given in the later SEC filings.

Here's one I remember- where they said they were "beefing up the key staff", but it doesn't jive to me with the last 10-Q that they had 4 full time and 1 part time employee. Cause at the time that PR was issued, they already had 3 employees, 2 of which are always Tomas and Comella of course- so that one never made sense to me either? And one of the announced "key positions" was financial/accounting related- yet Tomas per their SEC filing's own statements acts as sole person responsible for all accounting and financial issues within the company- like they have no financial controller or Sr. accounting position.

Here's that past PR about "adding key staff" - but I don't know where these people ever went as they don't seem to match the later SEC filing "employee counts" IMO?

http://www.marketwired.com/press-release/bioheart-boosts-team-with-regulatory-finance-and-administrative-expertise-otcqb-bhrt-1833174.htm

See that one. "Bioheart Boosts Team With Regulatory, Finance and Administrative Expertise"

But the company is only 4 full time and 1 part time right now- and 2 are Tomas and Comella and they've never mentioned having a "regulatory" or "finance" person since that I can remember?

Or this one:

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=asecNvIZ.xXI

Or this one:

http://globenewswire.com/news-release/2012/02/29/469402/247547/en/Bioheart-Appoints-Advisory-Board-of-Business-and-Financial-Executives.html?print=1

Or this one:

http://globenewswire.com/news-release/2012/01/30/466536/244075/en/Frank-Young-Joins-Bioheart-as-Financial-Consultant.html

Who knows? I guess that Magna line will be tapped to pay this new guy or just more common shares issued to him like all the "related party notes"? I don't get it?

For example, the last 10-Q, PAGE 36 (I'd assume the $800K "notes" are the bonuses paid to Comella and Tomas, meaning they didn't have cash to pay um- so they issue notes w/ interest on um typically and it notes rising accounts payable due and rising accrued, meaning yet to be paid expenses)

"Our use of cash for operations in the nine months ended September 30, 2014 reflected a net loss generated during the period of $1,247,199, adjusted for non-cash items such as stock-based compensation of $407,616, fair value of warrants issued of $136,837, depreciation of $3,745, amortization of debt discounts of $343,592, related party notes payable issued for services of $800,000 and non-cash interest paid of $385,501, loss on change in fair value of derivative liabilities of $61,339, net gain on settlement of debt of $2,272,283. In addition we had a net increase in operating assets of $186,306 and an increase in accrued expenses of $246,486 and in accounts payable of $628,684."

And here, in the same 10-Q filing, one can see them "paying bills" not using cash, but be issuing out common shares of stock- for even "accounts payable" and "consulting services". So again, what are they gonna pay this new "C" level guy with?

PAGE 27 (it's about 9.5 MILLION shares issued for "paying bills" instead of traditional method of using CASH to pay a company's bills. They issue shares like this every qtr for "bill paying", as far back as I can remember in SEC filings)

"Subsequent issuances
On October 3, 2014, the Company issued 514,886 shares of its common stock as payment of $70,521 interest on its Northstar (related party) debt.

In October 2014, the Company issued 1,818,182 shares of its common stock in settlement of $20,000 of convertible debt.

In October 2014, the Company issued 1,293,103 shares of its common stock in settlement of $15,000 of convertible debt.

In October 2014, the Company issued 2,260,764 shares of its common stock in settlement of $18,000 of convertible debt and accrued interest of $2,120.

In October 2014, the Company issued 552,846 shares of its common stock in settlement of $5,500 of convertible debt and accrued interest of $1,300.

In October 2014, the Company issued an aggregate 2,773,549 shares of common stock for consulting services.

In October 2014, the Company issued 538,875 shares of common stock in settlement of accounts payable."

Same 10-Q, PAGE 4 shows they still owe "related party debt" aka insiders being owed for "notes" and "loans" cause the company didn't pay um in cash or they apparently lent the company cash I guess- over $2.3 MILLION (that's in addition to the $1.5 million that Brenda Leonhardt is now suing for which is one line above as "subordinated related party debt")

PAGE 4, 10-Q table Liabilities and Stockholder's Deficit:

Notes payable, related party $2,377,271
(they owed um about the same in 2013 by the way- so it's not gone or going down cause of "revenues" or whatever)

So again, if they're borrowing from themselves, if they're paying presently owed large "cash" bonuses to 2 "employees" via issuing "notes owed" etc- then what the heck cash do they have to pay some new Sr Mgt position with? Again, makes zero sense to me? I'll be looking in future SEC filings to see if this "new hire" guy shows up and continues to show up and see what and how he's being paid.