US Stem Cell Inc (USRM)

[Dragon Lady]

Looks like the low vol, wide spread "breather day" - the pattern for months now.

0.0095 / 0.0099 (14700 x 1220000)

http://www.otcmarkets.com/stock/BHRT/quote

It's completely stacked to the Ask/sell side again, but no buyers or real volume coming in, even at SUB ONE CENT. But the MM's appear to be "letting it breathe" a tad as they look to unload some shares on the wide-spread at .099 maybe, if they can get any buyers to nibble.

The Bid never really moves up much at all though, staying pinned at .091, maybe creeps up a tad now and then, then gets stepped on right back down to that .009 range, the "new normal" it appears now on this one.

Wonder if it will have a high volume sell-off Friday again, par for the course for over a month or so now. I think it's setting up for the next leg down as BHRT will likely tap, have to tap, the Magna line soon IMO. They did qty-3 very recent toxic "convertible note" deals, the last one being as recent as Feb 2015, but they were for pittances of cash like $25K and $38K at a time. Yet BHRT still made a Manga "draw" as those other toxic notes aren't enough to even fund their base salaries, bonuses, and now probably huge legal bills (multiple law suits going on, legal bills were listed in 10-K as big part of general/admin expenses) and accounts payable which still sat at like $2 million end of 2014, while they only had $36K total cash left to their name.

PAGE 55, just filed 10-K:

"Marketing, general and administrative expenses were $4,669,432 in 2014, an increase of $2,401,601 from marketing, general and administrative expenses of $2,267,831 in 2013. The increase in marketing, general and administrative expenses is attributable, in part, to an increase in legal fees, salaries and insurance expenses.
"

Just "accounts payable" still sat at over $2.3 MILLION due on the balance sheet, PAGE F-3 of the just filed 10-K for end of 2014, more than the balance on the prior 10-Q from Q-3. Meaning they're not even paying down their most immediate due bills- they're racking up faster than they pay them off (cash flow problems, liquidity problems IMO). Those are "short term" bills typically on "accounts payable", usually due within a month or two max (30 days due, sometimes maybe 60 days max) at the most. How they gonna pay those bills other than more mass dilution using Magna's credit line and even perhaps more "toxic" type convertible notes?

If they make another Magna "draw" soon, plus all the toxic, convertible notes they have coming due starting in a few months and on through the summer, all the way to October, which IMO means they'll all be converting and dumping shares, I think it's gonna go lower. No "PR", no "news" - nothing has created even close to enough buying pressure to counteract all the cheap dilution shares hitting the sell side or even begin to reverse the sustained, unbroken 10 month plus downtrend.

http://www.sec.gov/Archives/edgar/data/1388319/000114544315000378/bioheart_10k.htm

Just filed, recent 10-K, PAGE 36:

"The sale or issuance of our common stock to Magna Equities II, LLC at a discount may cause substantial dilution and the resale of the shares of common stock by Magna Equities II, LLC into the public market, or the perception that such sales may occur, could cause the price of our common stock to fall."

PAGE F-34: (MAGNA'S already getting boat loads of shares)

"Subsequent stock issuances

In January 2015, the Company issued 4,783,568 shares of its common stock in settlement for services, provided 14,299,567 shares of its common stock in settlement of $49,500 of outstanding convertible notes payable, and $2,981 accrued interest and 2,096,450 shares of its common stock for net proceeds of $16,118 from equity drawdown under the Magna Purchase Agreement.

In February 2015, the Company sold an aggregate of 1,443,656 shares of its common stock for net proceeds of $16,270. In connection with the stock sale, the Company issued an aggregate of 1,443,656 warrants to purchase the Company’s common stock for five years at $0.01127 per share. In addition, the Company issued 20,219,367 shares of its common stock in settlement of $132,500 of outstanding convertible notes payable and $2,520 accrued interest and 16,556,976 shares of its common stock for net proceeds of $135,645 from equity drawdown under the Magna Purchase Agreement.

In March 2015, the Company issued 6,185,432 shares of its common stock in settlement of $25,000 of outstanding convertible notes payable and $1,226 accrued interest. In addition, the Company issued 635,357 shares of its common stock as true up shares relating to the February 2015 equity drawdown under the Magna Purchase Agreement."

PAGE 46:

"We paid to the Investor a commitment fee for entering into the Common Stock Purchase Agreement equal to $150,000 (or 5.0% of the Total Commitment under the Common Stock Purchase Agreement) in the form of 9,109,128 restricted shares of our common stock, calculated using a per share price of $0.016467.

On December 22, 2014, the registration statement of the shares underlying the Purchase Agreement and the Common Stock Purchase Agreement was declared effective by the Securities and Exchange Commission, thus, registering an aggregate of 143,812,591 shares of common stock. During the year ended December 31, 2014, we did not use the draw down on the equity line. Subsequent to December 31, 2104, we issued an aggregate of 19,288,783 shares of our common stock in exchange of $151,763 draw down on the equity line."

So that's about 19 MILLION shares issued to ole Magna right there from just Jan to March and Magna was already given another 9 MILLION plus prior to that as "up front fees" to open the credit line.

So Magna by March 2015 already had in their hands, more than 28 MILLION free trading shares of BHRT (Over 19 million + 9 million). If BHRT makes another "draw" on the credit line (which they will according to their own SEC filings, they said they plan to "tap" all $3 million of it, and then would still need more cash- see their SEC filings for the wording)- that's gonna be for all intents and purposes a never ending flow of dilution shares to Magna IMO, for at least the next 22 months or so, whatever is left on the 24 month period of the "credit line"- it'll amount to 100's of MILLIONS of shares before it's all said and done IMO. They're already on their way to handing close to 50 MILLION shares to Magna and they've barely even used the credit line yet.

My .009 cents worth. Going lower soon IMO, will likely retest and probably break the recent .007 low; it's stair-stepping down, "ratcheting" in tiers to me, but the trend is steadily down.

Interesting financial journalism piece done by Bloomberg, one of the most respected financial journals and TV channels in the world- they explained how Magna "works" and does what they do. Fascinating piece of journalism IMO:

http://www.bloomberg.com/news/articles/2015-03-12/josh-sason-made-millions-from-penny-stock-financing