Hemp Inc (HEMP)

[Det_Robert_Thorne]

Take a closer look at HEMP's balance sheet

Over 6.79 million $$$ in Assets!! Only 219k liabilities!

Take a closer look at the balance sheet as shown in HEMP's filings, and you'll find the numbers aren't as rosy as you think.

1) $1.8M of the assets are shown as LPO Software, which was supposed to be the software that would run an affinity program. HEMP has carried this on the books for years, despite the fact that it left that business years ago. This item should have been written down to zero.

2) $3.8M is what Perlowin is now valuing the plant in NC, despite the fact that it is non-operational, and likely won't be complete and running until perhaps 2017, if ever. Ninety percent of the equipment is ten years old, and was purchased for less than $200K at a bankruptcy auction in 2014.

3) The final thing to notice is the $4.3M in Subscriptions Payable number at the bottom of the balance sheet. This are primarily loans from CEO Perlowin that were -- for a short time -- carried on the balance sheet as loans before he moved them from liabilities to subscriptions. This makes the balance sheet look better, but also means that he is owed hundreds of millions of shares, which will add to the OS.

You can see the full 2Q/16 report at the following link:

http://www.otcmarkets.com/financialReportViewer?symbol=HEMP&id=159320