MJAM2020
13 hours ago
https://www.investopedia.com/terms/b/bluesheets.asp#:~:text=Blue%20sheets%20are%20formal%20requests,the%20price%20of%20the%20security.
Blue Sheets: What They are, How They Work, Failure to Comply
By ADAM HAYES
Full Bio
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.
What Are Blue Sheets?
Blue sheets are formal requests for information sent out by the Securities and Exchange Commission (SEC) to market makers, broker-dealers, and/or clearinghouses. Blue sheets ask for information related to specific securities or transactions—especially those that may have affected the price of the security. Blue sheets are often requested in order to determine if there has been any illegal activity or to determine why a certain security experiences a large level of volatility. Like many things in the trading world, blue sheets have now become electronic.
Blue sheets are requests for transaction information by the SEC from financial institutions or trading firms.
This information is meant to improve the transparency of banking and trading activities and to investigate irregularities.
Companies or individuals may be fined if they do not provide accurate information.
Blue sheets are now requested and filed only digitally.
Understanding Blue Sheets
The questionnaires or requests for information sent by the SEC came to be known as blue sheets because they were printed on blue paper. Blue sheets provide the SEC with a lot of different information. They are supposed to include information about the account holder and the trades executed by a firm and its clients, specifically:
The name of the security
The date and price of the trade
The size of the transaction
A list of the counterparties involved
1
The objective is to grant regulators the means to analyze a firm's trading activity. If the information is incomplete, out of date, or otherwise inaccurate, it can interfere with the ability of regulators to spot instances of fraud and insider trading. Blue sheet information is used by the Financial Industry Regulatory Authority's (FINRA) Office of Fraud Detection and Market Intelligence to find and identify oddities in trading activity that could be insider trading.
2
Banks and other institutions that serve as brokers and clearinghouses commit resources to managing and filing information appropriately. This can mean tying up employees to gather information. Systems have to be established in order to better capture the information. As with other actions tied to compliance, the added expense can be seen as a burden.
Each layer of sophistication that is added to blue sheet information gathering helps to improve the transparency of banking and trading activities. Blue sheets can speed up investigations into fraud as long as the information is accurate and timely. When regulators discover oddities in trading actions from blue sheet information, it can trigger a more thorough investigation that may require further reporting and records by banks and other financial institutions.
Oddities in trading activities from blue sheets can trigger a thorough investigation that may require banks and other financial institutions to provide records and in-depth reporting.
Special Considerations
Blue sheets were originally mailed out on paper in a hard copy system. But that changed in the 1980s. Blue sheet information is now provided electronically through electronic blue sheet systems, or EBS. The change is a result of the high volumes of trades that began taking place as trading systems began moving to electronic exchanges. In addition, more professionals and institutions trade securities through different broker-dealer accounts.
Sending and receiving blue sheet requests electronically allows information to be transmitted in a timely manner so that files can be reviewed and closed as soon as possible.
FINRA sends blue sheet requests to recipients via email and assigns a due date for each request. FINRA also posts the requests on its system in case the company doesn't receive the original request. Companies that don't have any information to report must send a confirmation email after doing a thorough review. FINRA does not accept blank or empty blue sheets as a response.
2
Failure to Comply
There are consequences companies face if they either don't respond to requests for information or if the data they submit is later found to be incomplete or insufficient. All responsible parties may be fined by the SEC. The size and scope of the penalties can vary depending on the violation.
There have been several instances where major banks have had to pay big fines for not giving enough information on the blue sheets requested by the SEC. Citigroup paid $7 million in 2016 and Credit Suisse Securities paid $4.25 million in 2015 for fines stemming from insufficient blue sheet information on trades made by their customers.
imho
mj
satter
3 days ago
As I stated it likely could have jumped because because they signed as a guarantor on that note. That was not a transfer of RNVA liability to FOXO where RVNA cleared it's self of liability as you suggested. As it turned out FOXO did add that note guarantor as a liability the way I read it.
They reported total current liabilities in Sept 30/2024 as 34,347 vesrus in Dec 31/2023 14,336, a 20,111 increase in liabilities. It is accounted as accounts payable, accured expenses, notes payable, related parties payables and accurals.
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable $ 8,204 $ 4,556
Accrued expenses 12,557 3,986
Related parties’ notes payable 1,762 790
Notes payable 7,803 4,203
Related parties’ payables and accruals 3,682 801
Right-of-use lease liabilities 339 -
Total current liabilities 34,347 14,336
I see nothing that is related to RNVA in the above. Plus there is further explanation about
Then the total liabilities includes the 22,000 note as I read it.
Warrant liabilities 7 8
Related party note payable 22,000 -
Right-of-use lease liabilities, non-current 3,771 -
Other liabilities 100 481
Total liabilities 60,225 14,825
In conclusion I still don't agree with your comment that FOXO took approx 47 million of liabilities away from RNVA.
Signor
3 days ago
Hmmmm
The acquisition of Rennova Health's operations marks a significant strategic move for FOXO Technologies. With projected annual revenues exceeding $20 million and potential growth to $50 million within 24 months, this deal substantially boosts FOXO's financial outlook. The $22 million debt note structure, convertible to $20 million in preferred stock, provides financial flexibility while minimizing immediate cash outlay. The critical access hospital acquisition is particularly noteworthy, given its $18.5 million revenue and over $6 million EBITDA in 2023, indicating strong profitability.
satter
3 days ago
Why are you so concerned?
I am merely addressing misinformation being posted.
Many read, looking for informed information.
When they read for example two opposing positions on whether RNVA has ownership of FOXO and they would like to know, they can then decide which sounds more logical.
One that shouts "We owned FOXO" without any supporting back up substance to it, or read that for ownership more than 50% of outstanding shares is needed. They can then take that info, do a little Google search, decide.
I have seen this happen before with people saying when it was too late, I thought we had this or that, simply because a few people kept repeating the same misinformation for an extended period of time.
satter
3 days ago
Sounds like your implying Foxo aborbed RNVA' liabilities/debts.
If so, this is not something I agree with.
Foxo purchased assets from RNVA, not their debts. If FOXO' s liabilities increased, it was not because of transferring from RNVA, I believe.
Also, when RNVA started messing with FOXO in june of 2024, foxo liability in march were $18m. June $21m. FOXO completed RCHI in September 2024, liabilities jumped to $60m. FOXO took much RNVA liabilities. 10/2023 RNVA liabilities ballpark of $47m.
I can not find the figures you posted above, and not saying they are not correct, could you post a link to them please. Perhaps there would be further details explaining the jump increase in liabilities you described.
FOXO was a guarantor to that loan. It's not clear to me if signing as a guarantor on a loan requires you to list that loan amount as a liability but surely it makes sense that it could be. That could account for a 22 million increase in FOXO'S liability financial report, but not taken from RNVA liabilities debts as reducing their's.
We don't have Financials for RNVA.
And no to receiving dividends to RNVA shareholders from FOXO, IMHO
As far as receiving RNVA dividends directly from RNVA, I do not see that happening. Hope I am wrong though.
I don't see RNVA as this clean shell. It defaults on payments. It's unclear to me what Seamus intends to do. I think he is very irresponsible for not commenting on EM tier for so long now to his shareholders who are trapped on what he is going to do about it.
Is there some point that you demand some answer to not being able to trade, instead of praising him as some genius? What kind of message does that send to him? It says you are just fine with EM tier and ya give yourself a raise on your 500k salary, all is good, thanks.
Signor
3 days ago
Posted something, not sure ihub took it because of size. Old data mostly used by shorts. Not sure why you so concerned abt a security most people can't buy anyways.
Item 1.01 Entry into a Material Definitive Agreement On October 25, 2023, Rennova Health, Inc. (the “Company”) entered into an Amendment and Waiver Agreement (the “Agreement”) with the holders of its Senior Secured Original Issue Discount Convertible Debentures due March 21, 2019 (the “March 2019 Debentures”) and its Senior Secured Original Issue Discount Convertible Debentures due September 19, 2019 (collectively with the March 2019 Debentures, the “Debentures”). As of June 30, 2023, there were outstanding $8,222,240 principal amount of Debentures (including mandatory default amounts, if any) and $6,192,700 in accrued interest. Under the Agreement, all defaults under the Debentures were waived and the maturity date of the Debentures was extended to December 31, 2025. Certain other amendments were also made in the terms of the Debentures. As a result of the Agreement, the Company does not expect to recognize default interest in future periods, subject to remaining in compliance with covenants and other obligations.
satter
3 days ago
RNVA is not profitable. Has concerning debts with inability to make payments. RNVA ceased providing fins & has been placed on EM tier.
From their own words.
Our business has substantial indebtedness; the majority of our debt instruments are in payment default and contain restrictive covenants which may affect our operational and financial flexibility.
We currently have, and will likely continue to have, a substantial amount of indebtedness. Our indebtedness could, among other things, make it more difficult for us to satisfy our debt and other obligations, require us to use a large portion of our cash flow from operations to repay and service our debt or otherwise create liquidity problems, limit our flexibility to adjust to market conditions and place us at a competitive disadvantage. Restrictive covenants in the agreements governing our indebtedness may adversely affect us. As of December 31, 2022, we had total debt outstanding of approximately $14.5 million, all of which is short term and the majority which is past due. As a result of non-payments of debt, included in outstanding debentures at both December 31, 2022 and 2021, were default payment penalties of $1.9 million and we have incurred penalty interest on outstanding debentures and notes payable of approximately $1.8 million and $2.6 million during the years ended December 31, 2022 and 2021, respectively
Our ability to meet our obligations depends on our future performance and capital raising activities, which will be affected by financial, business, economic and other factors, many of which are beyond our control. If our cash flow and capital resources prove inadequate to allow us to pay the principal and interest on our debt and meet our other obligations, we could face substantial liquidity problems and might be required to dispose of material assets or operations, restructure or refinance our debt, which we may be unable to do on acceptable terms, and forego attractive business opportunities. In addition, the terms of our existing or future debt agreements may restrict us from pursuing any of these alternatives.
We may have a limited ability to use some or all of our net operating loss carry forwards in the future.
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