Hemp Inc (OTCMKTS:HEMP) Files Annual Report

Hemp Inc (OTCMKTS:HEMP) were supposed to complete their annual report for 2015 by March 30. On that day, however, instead of finding the report investors were greeted by a notification of late filing. Apparently the company needed additional time to finish consolidating its financials but it still anticipated filing the report within the 15-day extension. That period came to end on April 14 with the report still missing. As a result OTCMarkets slapped HEMP‘s profile page with the “STOP” sign.

This Monday the annual report was finally submitted and investors had the chance to see Hemp Inc‘s financial results for 2015. Let’s warn you that the picture is far from pretty – as of December 31, 2015, HEMP had:

• $60 thousand cash
• $755 thousand total current assets
• $168 thousand total current liabilities
• $113 thousand annual revenues
• $8.8 million net loss

With extremely limited cash reserves, underwhelming revenues and a staggering net loss of nearly $9 million the balance sheet fails to inspire much confidence. Taking a closer look, though, makes things even grimmer – for the first nine months of 2015 HEMP reported $111,633 in sales, which means that for the entire fourth quarter of last year the company has generated less than $2 thousand in revenues.

Then, there is the continued dilution of the common stock. As of June 30, 2015, HEMP had a split-adjusted (at the end of July the company performed a 1-for-10 reverse split) O/S count of 320 million shares. Six months later and that number is already sitting at more 457 million. In addition, as of December 31 HEMP also had 170 million outstanding preferred K shares out of the 175 million authorized. Each preferred K share can be converted into 10 common shares.

In light of the rather depressing numbers found in the annual report the fact that yesterday HEMP actually closed flat at $0.0478 per share can be viewed as an impressive achievement. Will the company manage to avoid correcting today, though?