US Stem Cell Inc (USRM)

[Dragon Lady]

LOL quote, " But no one disputes the fact that they're a nano cap
stock that currently has an active business plan that is making $$$"

BHRT does not "make money" or "$$$" and never has. BHRT takes LOSSES. BHRT has always (and continues too) spend FAR MORE than they ever take in as "revenues" or any other form of incoming cash and they do not self generate enough cash to come remotely close to self funding their own operations as a sustainable business. Continual losses and thus need to continually find more cash/money to make up for their LOSSES. The company has never, ever, ever had so much as ONE CENT of positive cash flow or ever "made money".

In FACT (since this is about FACTS)- despite their big talk now of "revenues" - they actually took a LARGER LOSS FROM OPERATIONS in 2014 than in 2013 and that's despite HACKING OUT OVER $500K from their R&D spending. Add that $500K R&D cut back-in, and their financial picture would be even more of a train wreck and that much more desperate.

From the most recent filed BHRT 10-K:



Notice the INCREASED LOSS FROM OPERATIONS in 2014 versus 2013 and they still ended yr 2014 with a pittance of $36K TOTAL CASH left to their name. They MAKE NO MONEY. They incur LOSSES, nothing else- and they make up those losses and survive via what's for all intents and purposes a continual, on-going, non stop use of toxic convertible debt financing deals- and that's what their own most recent SEC 10-K filing says and their other recent 10-Q and prior 10-K filings say.

Same 10-K, covering period of yr 2014 and updates to March 2015, PAGE 55:

"Research and Development

Research and development expenses were $66,420 in 2014, a decrease of $560,563 from research and development expenses of $626,983 in 2013. The decrease was primarily attributable to a decrease in the amount of available funds."

Same 10-K, PAGE 56:

"At December 31, 2014, we had cash and cash equivalents totaling $36,674; our working capital deficit as of such date was $10,957,443. Our independent registered public accounting firm has issued its report dated March 16th, 2015 in connection with the audit of our financial statements as of December 31, 2014 that included an explanatory paragraph describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern."

Same 10-K, PAGE F-34, showing they DO NOT "make money" but need to continually issue DILUTION SHARES (65 MILLION shares worth in less than the first 3 months of 2015) and they still continually ink "toxic" convertible debt deals- including qty-3 NEW ONES in just Jan and Feb of 2015 in order to keep survival cash coming in- pittance of cash like $25K at a time to keep them a "going concern" and out of insolvency.

PAGE F-34, most recent 10-K:

"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."

AND

"Subsequent financing

On January 7, 2015, the Company entered into a Securities Purchase Agreement with KBM Worldwide, Inc. (“KBM”), for the sale of an 8% convertible note in the principal amount of $38,000 (the “Note”).

The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on October 9, 2015. The Note is convertible into common stock, at KBM’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.

On January 28, 2015, the Company entered into a Securities Purchase Agreement with Fourth Man, LLC., for the sale of an 9.5% convertible note in the principal amount of $25,000 (the “Note”).

The Note bears interest at the rate of 9.5% per annum. All interest and principal must be repaid on January 27, 2016. The Note is convertible into common stock, at Asher’s option, at a 47% discount to the lowest daily closing trading price of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal at 150%, interest and any other amounts.

On February 19, 2015, the Company entered into a Securities Purchase Agreement with Vis Vires Group, Inc. (“VIS”), for the sale of an 8% convertible note in the principal amount of $38,000 (the “Note”).

The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on November 23, 2015. The Note is convertible into common stock, at VIS’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.
"

Why would a company supposedly "making money" be borrowing pittances of like $25K and $38K at a time using the most dilutive, desperation, share price crushing type of floorless, convertible debt, "toxic" financing deals one can use- having to give 45% to 47% share discounts out to a high interest rate lender? Why?

They don't "make money" - simply not true. They make LOSSES, continual LOSSES to this day and their own SEC filings say just that.