Hemp Inc (HEMP)

[Det_Robert_Thorne]

Report filed. As I predicted, 1Q/15 sucked hard

I knew that the 1Q/15 results would be bad, and in fact, they were so bad that Perlowin didn't file a notification of late filing on 3/16 and instead just filed the report today after Midnight on the East Coast (a 5/21 filing date).

Revenues were a miniscule $6,223, while COGS, at $28K, were four times revenues, leaving a gross loss of $21,784. Subtract another $729K in operating expenses, and you get an operating loss of $751K.

Add other expenses of $228K, and the net loss before taxes was $979K.

Cash actually increased, because it appears that Perlowin sold $200K of the stock received last year from consulting clients and issued another $793K in notes payable.

So overall notes payable increased to $2.785M from $1.992M at the end of 4Q/14. Guess he needed more money for the unassembled decorticator. I wonder how much of the new notes are convertible debt?

Regarding the consulting client stock held for sale, it was values at $2.457M at the end of 4Q/14, but after selling some for $200K, the remaining stock is now only valued at $1.19M.

It appears that the selling of the stock and the new notes created a situation where Perlowin didn't need to personally loan more money to the company, but it does seem that he did convert some Preferred K shares to common, but the OS only increased by 3M shares.

http://www.otcmarkets.com/financialReportViewer?symbol=HEMP&id=138900

So the revenue was pathetic, there was a writedown of the remaining stock obtained from the clients, and a nearly $1M loss. Here's what I wrote on April 2, 2015:

Now, for 1Q/15: There were no new consulting clients, the Ascent Expo was a bust, and no Kenaf sales were announced. I expect that the 1Q/15 revenue will be less than $100K. There will be another writedown of the stock held for sale.

Losses will be large.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=112353892

Obviously, I was much too generous in thinking that HEMP would see anywhere close to $100K in revenue. The company did less than 7% of that number.