TAP Real Estate Technologies Inc (RWAX)

[NoMoDo]

Amazingly, HMBL has made great strides in cleaning the balance sheet.
1. The debt was adjusted to a fixed rate (for the most part).
2. Preferred C shares were reduced from 11.4k to just under 2k with very little conversion to common. (over $12mil to $2mil).
3. They got rid of BRU. BRU was charging $41k per month and controlled other areas that was settled and they are gone.
4. Spending is now at an absolute minimum.

These changes provided a pretty clean balance sheet already, but there is still just under $2k of C shares hanging over their heads. Debt is not really that important any longer. Still, the big issue is revenue. The new company model is holding company. They want to have revenue with a minimum of costs of goods/services. The initial press release concerning Multicortex AI stated that HMBL would provide consulting and sales assistance and that a fee structure would be forthcoming.

I personally am a bit concerned about the fertilizer though. YBYRA had struggled with the initial sale to HMBL and it cost them their ability to trade publicly because they didn't have an agricultural license at the time. Brazil is a huge mess right now. They are doing battle with the US in areas of free speech and trade. The last two Q's mentioned that the fertilizer is in Brazil - that was a big hint. Even though Ybyra bought a grain company with a license to solve the problem, I am guessing that they still need to get approval for the past fertilizer sale as well as future sales. This seems evident in HMBL classifying inventory as an asset instead of inventory. HMBL put out a disclaimer that they want to sell the entire amount in it's current form (moving an asset) instead of making it fertilizer or putting it to another use that would classify it as inventory. They then state that if that doesn't work, they will find another way to sell it.

Without revenue, we are looking at a very long process to completely clean the balance sheet. Any sale of fertilizer - even a buck worth would indicate that the problem has been solved and we are off to the races. If they are able to sell the product in it's entirety as an asset, then cleaning the balance sheet would be very easy.