Most RECENT 10-Q BALANCE SHEET: Assets versus liabilities, Sept 30, 2013 page 4, "Condensed Balance Sheet":
TOTAL ASSETS line entry: $70,733 (and yes, that's in dollars, NOT $1000's as is typical
TOTAL CURRENT (note CURRENT) LIABILITIES line entry: $13,440,362
TOTAL STOCKHOLDER'S DEFICIT line entry: ($13,650,667)
Notice the parenthesis, that means it's a NEGATIVE NUMBER as in DEBT OWED. They have NO net "assets" and compare it to the market cap.
CASH BALANCE, CASH AND CASH EQUIVALENTS ine entry same balance sheet: $6,684. Yep, SIX THOUSAND CASH against over $13 MILLION in current liabilities. I keep more than $6K cash on hand, meaning liquid just to run my household. For a public traded company to have that little cash is essentially broke. About as broke as it gets.
Further, you cited a bunch of office furniture, lab gear or whatever- in a fire sale, that stuff is usually worth next to NOTHING. Those "asset values" are carried "on the books" based on their purchase price and depreciation schedule. Good luck having a parking lot sale and trying to sell that stuff off for 50 cents on the dollar. They have essentially NO ASSETS or very little- they "might" scrape what, a $100K together if some close-out buyer guy/company came in and bought it all. I've seen a BK company before and the "liquidation" phase- those buyers usually pay pennies on the dollar for used office furniture, lab gear, etc. By contrast- Apple for example is so valuable because they own intellectual property- a patent catalog worth a King's fortune. They also own large "campuses" of real estate in some of the wealthiest area of CA. Chevron owns oil field leases, oil reserves etc. A pharma company like Merck owns a drug portfolio, again patents and intellectual property plus factories and buildings, etc. Also, all those companies have enormous amounts of cold, hard cash on their books- meaning they have a "current ratio" of being able to easily pay their bills, and they also "throw off" large amounts of current cash on a daily, monthly basis from operations. That is how "assets" versus "debt" works and what BK means- CAN YOU PAY YOUR OBLIGATIONS TODAY with cash on hand. You see it happen all the time to sports or Hollywood figures or rock stars. They are technically BK as they can't meet their current bill load as they've over-built their lavish lifestyles. They then have to 1) Liquidate resources to pay creditors and 2) Get projects or go on a road tour to boost cash income and 3) Down scale their spending to come in line with their current income- which often drops off sharply as they age, but they never change their lifestyle. They are often "asset rich" but "cash poor". Unfortunately- BHRT is both, they are cash poor and asset poor- other than being public and being able to dump shares, they'd already be gone. But even the share dumping game can only play out for so long. The share count outstanding gets huge, the price collapses as it has (4.5 pennies to as low as 1 penny) and the people willing to give you cash-for-shares demand more and more onerous, horrible terms as their risk of getting paid back gets worse and worse the more your shares become worthless or near worthless. That's it in a nut shell IMHO. Their financial condition is horrible and about as desperate as a company can face- their auditors have said as much. I don't know how you can dispute that.
AI
