Business Context and Reporting Period
Creative Medical Technology Holdings, Inc. (Nevada corporation) filed this Form 8-K on November 17, 2017. The filing reports the entry into a Material Definitive Agreement regarding management services.
Key Financial Metrics
This filing does not contain standard financial statements (revenue, profit, cash flow, or debt). The primary financial metric disclosed is the monthly management reimbursement obligation:
| Individual | Monthly Reimbursement |
|---|---|
| Timothy Warbington | $10,000 |
| Thomas Ichim, PhD | $5,000 |
| Donald Dickerson | $10,000 |
| Annette Marleau | $5,000 |
| Dr. Amit Patel | $5,000 |
| Total Monthly | $35,000 |
The filing text does not provide a clear value for total annualized cost, liquidity, or existing debt levels.
Material Changes and Agreement Terms
On November 17, 2017, the Company entered into a Management Reimbursement Agreement with its parent company, Creative Medical Health, Inc. (CMH), and its subsidiary, Creative Medical Technologies, Inc. (CMT). This agreement formalizes reimbursements for management and consultant services provided since January 1, 2016.
- Payment Method: CMH may elect to receive reimbursement in cash or in shares of the Company's common stock.
- Stock Valuation: If paid in stock, the price is set at a 30% discount to the lowest closing price during the 20 trading days prior to the notice of payment.
- Termination: Either party may terminate the agreement with 30 days' prior written notice.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, revenue outlook, or management commentary regarding future performance. The primary risk disclosed is the potential dilution to shareholders if CMH elects to be paid in common stock at a discounted rate.
Investor Verification Checklist
- Verify the Company's current cash position to determine if it can sustain the $35,000 monthly cash outflow.
- Review the Company's recent stock trading volume and price to assess the potential dilution impact if payments are made in stock.
- Confirm the total historical reimbursement amounts paid to CMH since January 1, 2016, which are not detailed in this specific filing.
- Check for any related party transaction disclosures in recent 10-K or 10-Q filings to understand the broader relationship with CMH.