Intellicell Biosciences Inc (fka SVFC)

[PSNewbie]

From a cost, liability and tax perspective, pretty normal practice for a startup.

It also represents the CEO's investment in the company. Instead of Intellicell having to raise cash to sign a new lease with an outside landlord, the CEO has had the company rent space from him with a very long grace period for the first month's rent, allowing Intellicell to have a home office for a period of time without physically paying rent. This is pretty much a loan to the company from the CEO. Again, pretty standard practice. Start your business in your garage, charge rent later when your business is successful...where have we heard this before?

Also, your post makes an incredibly valid point: it's all there in black and white. For everyone to see. In other words, they aren't hiding this arrangement. It would be fairly easy to structure a much more shady deal where investors couldn't see what was going on...

Just my opinion...