When Will Cannabis Science Inc (OTCMKTS:CBIS) File Its Annual Report?
Cannabis Science Inc (OTCMKTS:CBIS) were supposed to have filed their annual report for 2015 by March 30. On that day, however, the company submitted a notification of late filing stating that they couldn’t complete the report due to “unanticipated delays”. CBIS still expected to file the annual report within the 15-day extension, though.
Well, it seems that these “delays” are proving to be far more serious than what the company initially thought because the extension is now long over but there is still no sign of the report. In fact, due to CBIS missing all of the deadlines their OTCMarkets profile page has been marked with the OTC Pink Limited Information warning sign.
Even though the lack of a more current data about the financial state of the company is enough of a red flag on its own in the case of CBIS things are far, far more serious. Just take a look at what the company had in term of financials at the end of September 2015:
• $4791 cash
• $138 thousand total current assets
• $5.1 million total current liabilities
• $4150 revenue
• $3.9 million net loss
The balance sheet is simply abysmal – back then CBIS had less than $5000 in cash and even less in generated revenues. For the nine months ended September 30 the company had a net loss over $14.3 million and, what a surprise, revenues of exactly $4150.
The extremely underwhelming results haven’t stopped the company from issuing millions upon millions of shares through various equity compensation and award plans. Last year the compensation committee of the company approved the issuance of 163 million shares to “various individuals and companies” among which were the former CEO of CBIS, the current CEO, the COO, and the CFO.
At least Mr. Dabney, the CEO of the company, is going to gift some of his own shares to the stockholders of the company. The record date for eligibility for the gift was March 31. What you shouldn’t forget, though, is that the reason behind Mr. Dabney’s decision was the failure to get the two dividends proposed by CBIS approved. Investors had waited years for the first of the dividends, which had a record date of December 31, 2010, just to learn that FINRA had ultimately decided not to approve either of the dividends. Currently the PRs published by CBIS have not revealed the exactly how many shares that are going to be distributed as gifts.
In early trading today CBIS opened over 5% in the green but the momentum quickly shifted and the stock is currently sitting over a percent in the red at $0.018.
