Theralink Technologies Inc (THER)

[42Hours]

Here is my initial research from this morning. I was just told about OBMP earlier today and felt that what I found was worth sharing. Also, these are my opinions based on around only 2 hours of research! Much more research is needed!

I enjoy reading responses and if you find anything below that is inaccurate, please post it on the board quickly. I never want to be the clown that provides misinformation. Also, please forgive any typos.


THERALINK TECHNOLOGIES, INC.
$OBMP

Will I buy: Likely, with small beginning position. Further research needed before further purchases.

Reported share structure:
Authorized Shares:  6,666,667 (12/31/2020)
Outstanding Shares: 1,398,070 (12/31/2020)


What sets it apart from other companies:

- Has 7 patents around technology used to detect cell surface receptor proteins, which are the drug targets for most FDA-approved and investigational target therapies for cancer treatment. In idea, this can detect whether a cancer drug will be and over time remain effective for cancer patients.
Note -> need to confirm patents.


The Good:
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- Share structure is amazing, but large AS coming soon (see "The Bad" in later post)

- Company has 7 patents that will help determine individualised patient cancer drug effectiveness. The significance of this cannot be overstated! See presentation link in fourth "Good" point.

- Aside from financials, the company has been getting progressively better on communication (via filings) in 2020.

- Clean, concise, and understandable presentation of company work and direction in 10-28-2020 8K filing (Link: https://www.otcmarkets.com/filing/html?id=14465112&guid=9ydKUp5kxDb-sth#EX99-1_HTM). This represents understanding of who they are serving and how to communicate with us.

- New CFO (Chilcott, III Thomas E.) In the 8K filed on 09-29-2020 that shows Andrew Kucharchuk resigned from the CFO position (Link: https://www.otcmarkets.com/filing/html?id=14415275&guid=9ydKUp5kxDb-sth). Chilcot has a great history for this position. From linked 8K: "Mr. Chilcott was the President of Chilcott Consulting Group (“Chilcott Consulting”), a financial and accounting services firm specializing in corporate restructuring and turnaround management. Prior to Chilcott Consulting, from January 2017 to June 2019, Mr. Chilcott worked for Ampio Pharmaceuticals, Inc. (“Ampio”), a publicly-traded development stage biopharmaceutical company..." (Link: https://www.otcmarkets.com/filing/html?id=14415275&guid=9ydKUp5kxDb-sth). As of yesterday, AMPIO (symbol AMPE) trades at $1.70 on the NYSE. Financial statements (newest was Q1 2020) from when Andrew Kucharchuk was CFO looked to be getting progressively worse. It appears Chilcott, III Thomas is very fit to turn this around, given his history.

- Aquired Avant Diagnostics, Inc., a Nevada corporation (“Avant”) on June 5, 2020 (Link: https://www.otcmarkets.com/filing/html?id=14368257&guid=9ydKUp5kxDb-sth)


The Bad:
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- Financial disclosures are dilenquent.

- Reported very large future AS increase in DEFM14C (Date: 8-31-2020, Link: https://www.otcmarkets.com/filing/html?id=14368257&guid=9ydKUp5kxDb-sth) From filing excerpt: "...we will amend the Articles of Incorporation to increase the authorized number of shares of our common stock from 6,666,667 shares to 12,000,000,000 shares. " Given the date on the filing, I am not sure why this has not taken place yet.


The Ugly:
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- Has a few different preferred series stocks that are convertible to common stock at amounts relatively large compared to current share structure. Need to look into this further. Link to most recent (Series E Preferred): https://www.otcmarkets.com/filing/html?id=14400455&guid=9ydKUp5kxDb-sth


The [you decide]:
-----------------------

- Current CEO (Jonathan Frederick) was involved in insider trading in 2016-02-04 for nominal amount ($1,025). Why not ugly; the amount is nominal and this was 4 years ago. Seems more like a moronic mistake with a huge reputation punishment than a Martha Stewart moment. Still worth noting. Link: https://www.secform4.com/insider-trading/1362703.htm

- Officers and directors were reported to own some shares. Why not good; last filing showing this was in 2017 and aside from the CEO (Jonathan Frederick), amount owned was small for each officer and director. Most of the CEO's significant ownership was in Series A Preferred (17.71% of all) & Series B Preferred (20.49% of all).

- Most recent financials show mounted debt quickly becoming due for company in 2019 Q3 through 2020 Q1, more than doubling each quarter. Why not ugly; without the last 3 quarters of financials, this may no longer be an issue and company may have secured funding that temporarily puts this in the rearview for now. CFO also just recently changed and this can change the entire capabilities of the financial outlook. If the technolgy passes any phase of testing, there will also very likely be so much funding available that this should not be a future issue. Watch this closely. If a phase fails, consider exiting.