Hemp, Inc. (OTCMKTS:HEMP)’s Downward Spiral Continues
Despite the fact that the stream of fluff PRs released by Hemp, Inc. (OTCMKTS:HEMP) has been having absolutely no effect in preventing the gradual decline of their stock, the company seems reluctant to stop. At the start of the week they posted a press release that once again had little to no connection with their business and instead talked about Hawaii’s two-year hemp remediation and biofuel crop research program in .
Not surprisingly HEMP dropped by 8% on that day followed by a loss of another 7% during yesterday’s trading. The ticker has now fallen to just $0.0525, a price level last visited at the end of January and nearly 82% lower than the highs of 30 cents reached in February.
The last meaningful update about the operations of the company came on April 30 and it revealed yet another consulting agreement with yet another pennystock that wants to benefit from what is left of the hype around the marijuana industry – Cloud Medical Doctor Software Corp. (OTCMKTS:NSCT). Unfortunately NSCT shares much of the same problems displayed by the rest of Hemp’s various consulting agreements and hardly changed the prevailing negative sentiment among investors when it finished its latest quarter with $15 thousand in cash and a net loss of $200 thousand. The accumulated deficit for the company at the start of the year was more than $26 million. Hemp’s own financial state is not much better despite the millions they have been logging as revenues. At the end of 2013 the company had exactly:
• $2200 cash
• $33 thousand total current assets
• $18 thousand total current liabilities
• $2.3 million revenues for 2013
• $1.2 million net loss for 2013
• $33 thousand total current assets
• $18 thousand total current liabilities
• $2.3 million revenues for 2013
• $1.2 million net loss for 2013
Now investors will have to wait for the next report in order to see if the $5.4 million in revenues announced for the first quarter of the year have improved the balance sheet at all. In addition the CEO of the company was issued even more preferred K shares bringing the total amount he currently owns to more than 200 million. Each of these shares can in turn be converted into 10 common shares for a total of 2 billion.
