May. 14 at 11:45 PM
$RGBP RGBP State of Chaos:
Pending litigation and control weaknesses:
A California complaint seeks
$398,740 plus fees, and management concludes disclosure controls and procedures were ineffective, ADDING LEGAL AND GOVERNANCE RISK.
*Severe liquidity risk:
Cash was
$271 March 31, 2026, with working capital deficit of about
$5.3M and an accumulated deficit of
$21.7M
*High leverage to Conv debt and derivatives:
Convertible notes payable (net) were
$817,717 and derivative liability was
$1,278,763 with legacy notes on steep discount terms pressuring equity
*Extreme dilution from equity issuance:
232,272,777 common shares were issued in six months to settle
$138,072 of principal,
$13,630 of interest, and
$20,500 of fees, plus 11,111,111 shares for
$50,000 cash and 160,519,051 add'l shares after qtr end
*Non-cash drives reported profit:
Net income of
$991,927 for the qtr and
$24,074 for 6 mo is primarily due to derivative income from revaluing liabilities. Core ops generated increasing losses.
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