BioElectronics Corp (OTCMKTS:BIEL) Publishes Quarterly, Sinks
Yesterday BioElectronics Corp (OTCMKTS:BIEL) published its quarterly report for the three months ended September 2015. By the closing bell the company’s stock slid 14% down to a close at $0.0012 per share, barely clinging on to the bottom edge of double zeroes.
The company’s report gave investors little to cheer about. Here is a brief summary of the balance sheet contained in the report:
- $23 thousand in cash
- $7.4 million in current liabilities
- $499 thousand in Q3 sales
- $727 thousand in Q3 net loss
Sales are down on a quarter-over-quarter basis, the company added nearly $2 million in notes payable to its liabilities. Net loss remained comparable to the previous quarter, at a six-digit figure.
Between June and September, the company managed to increase its authorized shares from 8 to 10 BILLION and very nearly filled up this newly opened space. BIEL went from 7.9 billion outstanding shares as of June 30 to a whopping 9.2 billion on September 20.
BIEL is also in the habit of issuing convertible notes to an entity called IBEX LLC – a company whose president is the daughter of BIEL‘s own president, thus constituting a related party transaction. There is nothing wrong with that per se, except the filing informs that the conversion prices of IBEX notes “have generally been 50% of the pink sheet closing price” of BIEL stock on the date the notes were issued.
BIEL keeps borrowing money from IBEX, with the notes’ total balance as of late September 2015 being $5.36 million. The full conversion of those notes would equal the issuance of 12,161,135,052 (12 BILLION) common shares.
The filing also informs that over the first nine months of 2015 IBEX sold $1.5 million worth of notes to third parties and “most” of those third parties converted the notes into delicious discounted shares.
With all this in mind, those wondering why BIEL has been unable to leave the bottom edge of double-zero land might have a few of their questions answered.
