US Stem Cell Inc (USRM)

[Dragon Lady]

BHRT SEC filing of 2010 showing a DEBT OWED BRENDA LEONHARDT- just as described in the lawsuit IMO. Not sure what's not clear about it- and it's still "on the books" to this day as $1.5 million "subordinated debt, related party" (see balance sheet, latest filed 10-K, March 2015) which would be the original principal amount owed her and apparently never paid back to her- which is why she's suing the company per the text of the lawsuit as filed (the way I read it at least, IMO)

http://www.sec.gov/Archives/edgar/data/1388319/000114544310001874/d27097.htm

That's a 2010 SEC filing by BHRT. It's says in plain English that the Leonhardts were "owed by the company" $3 MILLION dollars for loans they made in regards to the B of A loan guarantee (that B of A loan later went into default apparently)- and then it clearly shows Howard and Brenda Leonhardt being divorced and SPLITTING the owed loan- which would be SHAZAM, $1.5 MILLION of principal owed each and then accruing interest for all the time period it's not paid back to them.

FROM THE SEC FILING ABOVE, PAGE 19: (FORM 10-Q, DATE JUNE 30, 2010)

" In March 2009, the Company’s Chief Science and Technology Officer and his former spouse repaid $3.0 million of principal and a pro rata portion of accrued interest on behalf of the Company. The Company then owed this $3.0 million to the Company’s Chief Science and Technology Officer and his former spouse. This liability was reflected on the Company’s consolidated balance sheet on a separate line titled “Subordinated related party loan.” This amount continued to accrue interest at an annual rate of the prime rate plus 5.0%.

In February 2010 the Company’s Chief Science and Technology Officer and his spouse filed for divorce papers. Pursuant to the divorce, their jointly owned shares and their ownership of the loan to Bioheart for which they hold as a result of their payment of $3 million of principal and related interest to Bank of America on behalf of Bioheart, would be divided equally between them. As a result, the Chief Science and Technology Officer’s common shares were then reduced to 2,513,840 and his percentage shareholding of the Company to 13.8%, with his former spouse assuming ownership of the same number of common shares and percentage shareholding of the Company. Their commonly owned loan and related interest, as of March 29, 2010, of $4,140,201, was been equally split. The Chief Science and Technology Officer on March 29, 2010, elected to convert his portion of the loan and related interest to restricted common stock and warrants. As a result, Howard Leonhardt, the Company’s Chief Science and Technology Officer, as of June 30, 2010, owns approximately 20% of the Company as of June 30, 2010."

Seems pretty clear to me? Again, not sure what's hard to understand about it? The company said it owed the Leonhardts $3 mil, Howard took his part in stock and warrants or whatever, Brenda Leonhardt upon divorce got 50% of the loan owed = $1.5 million and was apparently never paid by BHRT and BHRT still to this day shows a $1.5 million debt on their balance sheet as "subordinated debt, related party" and it's for exactly $1.5 million and has been carried forward on the books for years.

Seems pretty clear to me? Someone is owed that $1.5 million, else- why didn't BHRT discharge it off their books as paid or write it down as a bad debt and book it over to the other side of the ledger, etc? Why? It's there to this day? Why?