US Stem Cell Inc (OTCMKTS:USRM) has been covered by Insider Financial in this article, and this other piece. Just recently, the company put out positive results for Q1 2017. Consequently, the editor believed that an update was necessary. Additionally, in this article, you will get to know the large amount of activity in the social media. We figured out lately that Facebook and Yahoo Finance are full of positive comments about the company. This fact may explain part of the recent explosive movements of the stock price noted in our previous articles. Have a look at the price action.SourceWe encourage investors to check our previous articles about the company in order to get a full picture of the R&D activities of USRM. In this article, we will only cover the most recent changes.Q1 2017Income StatementOn May 3, 2017, the Q1 2017 results were put out by the company. The most important highlights were a 62% increase in revenue as compared to the Q1 2016, an increase of 46% in gross profit, and the fact that the cash flow remained positive. Additionally, the company noted the payment of its convertible debt as of March 31, 2017. Common shareholders should appreciate this last transaction, as the risk of shareholder dilution is lower now. Furthermore, the convertible debt conversion helps explain the upside movement that trader saw at the end of March, which we could not fully explain in our last article. Mike Tomás, President & CEO of U.S. Stem Cell, Inc., said the following about the results.
"We are very pleased with the 2017 improvements in operations and balance sheet performance, we are progressing with our principal strategic business initiatives which include growing top line revenues and pursuing new business opportunities for exponential growth.” Source
Balance SheetThe balance sheet of the company is still the only flaw in this company. Thus, traders need to have a look a it from time to time. The cash on hand and the properties of the company are still the most relevant assets. Have a look:
March 31,
December 31,
2017
2016
ASSETS
Current assets:
Cash and cash equivalents
$
619,109
$
270,720
Accounts receivable, net
59,880
16,025
Inventory
41,006
42,218
Total current assets
719,995
328,963
Property and equipment, net
608,495
20,969
Other assets
Investments
46,911
67,544
Deposits
10,160
10,160
Total assets
$
1,385,561
$
427,636
SourceAdditionally, although the company was able to pay the convertible securities very recently, it still shows notes and long term debts. Have a look at the balance sheet and also note that the derivative liabilities are right now zero, as the company has paid its convertible securities.
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable, including $144,343 and $108,458 to related parties, respectively
$
1,464,637
$
1,290,292
Accrued expenses
987,303
904,772
Advances, related party
104,901
104,901
Deferred revenue
175,665
126,932
Deferred gain on sale of equipment
128,845
-
Deposits
465,286
465,286
Promissory note, short term portion, net of debt discount of $70,525 and $71,449 respectively
4,475
3,551
Notes payable, related party
1,782,292
2,290,285
Notes and capital leases payable, net of debt discount of $52,548 and $103,479, respectively
1,501,793
680,336
Derivative liabilities
-
297,156
Total current liabilities
6,615,197
6,163,511
Long term debt:
Deferred revenue
70,750
71,500
Deferred gain on sale of equipment
246,954
-
Long term deposits
100,000
-
Promissory note, long term portion, net of debt discount of $151,839 and $169,072, respectively
1,245,923
1,228,690
Notes and capital lease payable, long term portion
622,103
982,579
Total long term debt
2,285,730
2,282,769
Total liabilities
8,900,927
8,446,280
SourceSocial mediaOn the Yahoo Finance forum of the company, we could find 492 reactions to USRM's news. For a small company like this one, this is a lot of interest. Furthermore, the company's Facebook group has 133 members as of May 17, 2017. Investors need to understand that these are traders who follow closely the company's communications and comment on them in the Facebook chat. The information is digested by many participants and make USRM one of the more active names on the OTC Markets.ConclusionThe company was able once again surprise investors in Q1 2017. Traders celebrated it by pushing up the share price. Revenue increased as well as the gross profit. Cash flow improved compared to Q1 2016. Additionally, the company noted that it had successfully paid off the convertible debt, thus traders should have appreciated the decrease in dilution risk. We checked the balance sheet of the company and saw that the company still needs to improve the liability side of the ledger. Additionally, this time we had a look at the social media and found a lot of interest from retail and professional investors on Facebook and Yahoo Finance. To sum up, there is a lot to like in the company, thus we encourage investors to check the company from time to time. We will be updating our subscribers as soon as we know more. For the latest updates on USRM, sign up below!Disclosure: We have no position in USRM and have not been compensated for this article.
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