BHUS looks like a pump and dump. The shell was manufactured in 1995 and it has never had an operating history. The company has recently registered a lot of shares that have been issued as compensation to various parties and they have shuffled the deck a few times over the last two years; a 2.5 for 1 split in 1999 and a 1 for 10 reverse split last year.
Their SEC filings have incomplete and inconsistent disclosures. A few examples:
The Form 10-K for the year ending December 31, 2001 was filed on April 17, 2002. The number of outstanding on the cover sheet is listed at 15,129,423. The audited financial statements list the number of outstanding shares at 14,886,013. A 243,410 share “rounding error”?
The 10-Q for the quarter ending June 30, 2001 discloses that the one-for-ten reverse split was effective on June 6, 2001. There is no mention of the date in the 10-K, though the “Statement of Stockholders’ Deficit” implies that it occurred after September 30. My guess is that any shares issued as compensation after January 2, 2001 were on a post-split basis. A total of 5,915,000 shares, all of which now appeared to have been registered.
The “Additional paid-in capital” as of December 31 is listed at $18,481,359. Most of this balance is associated with the shares that have been given out as compensation. During the year 2000, the company issued 5,546,000 split-adjusted shares as compensation and assigned a value of $18,116,390 to them. If this valuation was real, the parties receiving the shares should have received either W-2’s or 1099’s for the stock issuances. Did that happen? Doubtful.
The company claims to have net operating loss carryforwards totaling $18,496,320. Only if those 1099’s and W-2’s were issued. |
