AI
Friday, October 25, 2024 6:20:58 PM
On the surface, 3Q2024 financial report looks reasonable, or potentially a touch encouraging (for example, Wound Pros is paid up, and Inventory on hand). However, there are valid concerns “bubbling” under the surface. A comparison between 2nd and 3rd quarter Balance Sheets (see below) begin to bring concerns to surface. There are NO Accounts Receivable for the Nigerian contract nor mention of it in Subsequent Events. There is the new $1.227M liability for the unmerited, unwarranted “bonus” to continually underperforming CEO, implying INVISIBLE Gross Sales of $2.045M, based on his 60% grift. Assume for a second, although it should be documented and clear, that the $2.0M is the “unstated” value of the Nigerian deal, there are multiple concerns with that. First, that means very low price for 500K or 1M units. Second, $2.0M - $1.2M “bonus” leaves only $0.8M. Third, the cost of inventory for 1M units to Nigeria will certainly have consumed some of remaining $0.8M. Lastly, the three (3) Loans Payable “sold” future receipts that will further materially affect any remaining amount of $0.8M (if obfuscated statements are being interpreted correctly). Cynicism points to value of deal not being announced because it is nominal and of benefit ONLY to CEO and loan holders.
Quarter after quarter, CEO signs off that report does NOT contain any untrue statement of fact or omit to state a material fact, etc. There are multiple examples of ongoing outdated or untrue information in the report for years. However, State Licensing is possibly the most egregious example. In 1Q2021 report, it is documented that state licensing agreement kicked off with six (6) states on January 4, 2021, with 3-year agreement. That statement has not been revised since then, including for obvious extension of agreement. 06/04/21 PR announced expansion to nine (9) states, and appears to be the last REAL increase to state licensing agreements verifiable by revenue recorded quarterly since then. Totally discounting the possibility of misappropriation of funds, 03/02/23 PR announced fantasy expansion to eleven (11) states and $55K/month never seen in financial statements. 10/24/23 PR announced further fantasy expansion to fourteen (14) states and $70K/month never seen in financial statements. Further, at two separate times, forecasts to expand to all fifty (50) states within a year have been announced with no further progress or follow up. My best interpretation is that recurring +/- $150K quarterly revenue is from ongoing nine (9) states licensing ($135K/qtr) and circa $5K/month revenue (50% of gross profit + 5% of gross sales as licensing fee) from Viaderma Distribution, Inc, formerly Biogenx, Inc. There are multiple “ventures” still in text speaking to revenue that obviously does not exist anymore, if it ever did. CEO displays no concern for attesting to accuracy of financial reports, that are consistently materially untrue by his own words and financial statements, or for fulfilling fiduciary responsibility reporting to stockholders, or for complying with regulatory rules. He seems incorrigible and flippant with responsibilities.
As I must, I still hope he changes and makes us all a nice return on investment or speculation, but the opposite is still much easier to sell.
Quarter after quarter, CEO signs off that report does NOT contain any untrue statement of fact or omit to state a material fact, etc. There are multiple examples of ongoing outdated or untrue information in the report for years. However, State Licensing is possibly the most egregious example. In 1Q2021 report, it is documented that state licensing agreement kicked off with six (6) states on January 4, 2021, with 3-year agreement. That statement has not been revised since then, including for obvious extension of agreement. 06/04/21 PR announced expansion to nine (9) states, and appears to be the last REAL increase to state licensing agreements verifiable by revenue recorded quarterly since then. Totally discounting the possibility of misappropriation of funds, 03/02/23 PR announced fantasy expansion to eleven (11) states and $55K/month never seen in financial statements. 10/24/23 PR announced further fantasy expansion to fourteen (14) states and $70K/month never seen in financial statements. Further, at two separate times, forecasts to expand to all fifty (50) states within a year have been announced with no further progress or follow up. My best interpretation is that recurring +/- $150K quarterly revenue is from ongoing nine (9) states licensing ($135K/qtr) and circa $5K/month revenue (50% of gross profit + 5% of gross sales as licensing fee) from Viaderma Distribution, Inc, formerly Biogenx, Inc. There are multiple “ventures” still in text speaking to revenue that obviously does not exist anymore, if it ever did. CEO displays no concern for attesting to accuracy of financial reports, that are consistently materially untrue by his own words and financial statements, or for fulfilling fiduciary responsibility reporting to stockholders, or for complying with regulatory rules. He seems incorrigible and flippant with responsibilities.
As I must, I still hope he changes and makes us all a nice return on investment or speculation, but the opposite is still much easier to sell.
