US Stem Cell Inc (USRM)

[Dragon Lady]

Revenues don't even generate enough cash to PAY THE INTEREST ON THEIR DEBTS- that's the reality of their situation.

Revenues were $489,557 - $241,933 cost of sales = $241,933 cash to their bank account (before any taxes, etc) from "revenues".

So their revenues (top line) for the qtr, only resulted in net cash of $241,933 to their bank account for the entire quarter.

https://www.sec.gov/Archives/edgar/data/1388319/000114544315000630/bioheart_10q.htm

From PAGE 30:

"Interest Expense

Interest expense during the three months ended March 31, 2015 was $429,842 compared to $305,898 three months ended March 31, 2014. Interest expense primarily consists of interest incurred on the principal amount of the Northstar loan, our former Bank of America loan, the Seaside National Bank loan, accrued fees and interest payable to the Guarantors, the amortization of debt discounts and non-cash interest incurred relating to our issued convertible notes payable. The debt discounts amortization and non-cash interest incurred during the three months ended March 31, 2015 and 2014 was $320,373 and $258,361, respectively."

So interest on their debt cost them $492,842 for the 3 months of Q-1, 2015. Interest expenses alone are thus running $492,842 / 3 = $164,280 per month Some of that is stated as "non cash" on convertibles, etc- in other words paid in dilution shares on debt conversions, but still, these are interest expenses. At least $30K a month of it appears to be immediate, 100% pure, real cash needed to be paid- which is thus over 1/3 of the cash they bank from "revenues", probably more than that is paid in cash interest expenses. No matter- as their general/ADMIN costs blow all that out of the water- see below)

So their "revenues" resulted in $241,933 cash to their bank ($80,644 per month), but their interest alone on their debts was $492,842 for the same period or $164,280 per month, essentially DOUBLE what their revenues are generating.

And that's not salaries, bonuses owed, legal, overhead like turning the lights on and lease, etc. They DO NOT generate even enough cash just to pay the interest on their debt- let alone fund their basic overhead, let alone actually run and conduct any "business".

PAGE 30, SAME 10-Q:

"Marketing, General and Administrative

Our marketing, general and administrative costs were $998,133 for the period ended March 31, 2015 compared to $ 833,329 for the period ended March 31, 2014, an increase of $164,804. The increase in costs primarily due to increases in salaries from $112,500 for the three months ended March 31, 2014 to $177,376 for the current period, an increase of $64,876, and our legal and consulting fees increased by $51,895 and $45,880, respectively, due to additional services provided.

Our marketing, general and administrative expenses primarily consist of the costs associated with our general management and product and service marketing programs, including, but not limited to, salaries and related expenses for executive, administrative and marketing personnel, rent, insurance, legal and accounting fees, consulting fees, travel and entertainment expenses, conference costs and other clinical marketing and trade program expenses."

So their costs made up of mostly salaries and legal and "consulting fees" etc- those are over $300K PER MONTH, more than the entire cash generated by their top line "revenues".

Thus, no matter how one slices it they're not even remotely close to being cash flow positive or cash self sustaining- the "revenues" are not even close to enough as their general/ADMIN costs keep rising as shown in the paragraph above. They pay common bills still via issuing dilution shares, they defer things using "promissory notes" with interest, they delay paying etc But when the rubber meets the road- they don't come anywhere close to balancing out in terms of expenses versus cash coming in, not even close. Especially cash based only on revenues- they'd be lights out real quick if they had to live on self generated cash and stop the mass diluting and continual use of toxic debt financing deals (FIVE toxic debt financing deals already in 2015 since it's the 5th month, MAY, so that's one convertible debt deal per month avg so far, un-ending, on-going)

NO "trials" were conducted or "funded" in this quarter

NO "share buyback" took place, LOL (wow, what a surprise, eh?)

NO major debt was paid off during the qtr (their current obligations total - it actually increased slightly now to $11 million plus)

So they lost about a $MILLION in the qtr and nothing like a major trial was started, let alone conducted or funded etc. (remember the re-start Myocell or Myocell SDF trials or whatever it was? How's that working out so far?) Yet massive share dilution continued (87 MILLION plus shares) and more "toxic" floorless convertible debt deals were done; qty-2 more in just April, plus 3 more before that in Jan/Feb making FIVE, qty-5 "toxic" convertible debt deals done so far in 2015.

What was that, that "stuff" that was said about no more dilution or no more continual use of toxic debt being "acceptable", etc LOL? What was it? The 10-Q and the last 10-K show that's just not the case IMO. They're diluting more than ever before and using just as much toxic debt as ever before- I don't see or read a single thing in these SEC filings to show otherwise? Nothing?