"The company to me appears to be broke." Well, I would argue they not only "appear" to be broke, they pretty much by all definitions are broke and have been for some time. Their cash entry for over a yr of 10-Q/10-K's has been anywhere from zero on one 10-Q to $6K cash on the last to maybe about $170K or so I think on one I read in between that. Their only means of hanging on has been massive share selling/dumping in exchange for brutal financing terms. Meaning the financier gets 1) A STEEP discount to market on the shares they're given in exchange for some cash- like 40% to 60% or so from last couple 10-Qs and 2) Usually gets a "convertible note" attached which grants them rights to more shares and gives them incentive to short the stock, which they have obviously done several times, driving the price as low as a recent .063.
So yes, they are "broke" essentially and their auditor has put a "going concern" warning in each of the last 3 or more 10-Q's citing that BHRT has a high likelyhood at some point of being unable to service their debt interest payments, pay their day to day obligations, etc. Remember, Northstar was formed because BHRT had gone into default on a key loan (I think the Bank America loan) and then Northstar, this "odd-ball" (my opinion) sort of shell corp is formed and "assumes" the loan- which means to me they had to put up collateral, my guess being homes, businesses they own, land, property, etc. A bank doesn't just let someone "assume" a bad loan- you gotta put up something to show for guaranteeing it, at least in any business or real estate I've ever done. Further, Northstar has now been granted a "lien" on nearly everything BHRT owns, will ever own, ever create, etc. It's right there in the 10-K of last yr. So it creates a huge question to me- what do the common shareholders of this company really even "own" anyway? Further, they re-jiggled the prefer share count/grant to Northstar so that they appear to have a lock on always controlling the shareholder vote, forever. Meaning, even if the shares outstanding reached the new limit of 950 million or whatever that number is, ole Northstars preferred shares get like 20 votes to every one common share- and they'd always be running the show. Another thing I find "troubling" to say the least. I've never, in yrs of following public traded companies seen something like this Northstar insider "shell" thing set up. I can't even figure out the legality or means allowed to do it- as it appears to leave the common shareholders with little or nothing. From the read of that 10-K, it appears that BHRT could go belly-up tomorrow, and Northstar could walk away holding all rights to any patent, any trade knowledge, rights to all clinical trial data, etc and just start the whole thing right back up again- with the common shareholders getting wiped clean.
That's my "read" from the documents, you do your own due dilligence and good luck to ya. Buy, sell or hold.
