Stocks Headed Due South While Interest Rates Rose This Week- $AMC $BEEM $NEO $NVDA $SHIP $VIX Rise!

By John F. Heerdink, Jr.

Quote of the Day: “It is the fight alone that pleases us, not the victory.” – Blaise Pascal

Happy Saturday!

I hope that you had a marvelous week and that the weekend is treating you well.

As for the broad markets this week, stocks headed significantly lower across all sectors, except energy, which managed to eke out a .2% gain on the shoulders of oil prices that rebounded a whopping .1% over the course of the week. The yield curve jumped higher again this week, which generally stifles growth, puts pressure earnings and expendable income, and adds downward pressure on the stock market. At the close of Friday, the 2-yr note yield had moved up 17 basis points to close at 4.78% & the 10-yr note yield closed up 12 basis points at 3.95%. The U.S. Dollar Index also moved up again this week from last Friday’s close of 103.88 to 105.26. These moves were driven by the macroeconomic schedule, which offered a number of reports that left investors with the understanding that The Fed would be continuing on their interest rate raising path and Fed president’s chirped in to state that they may persist for quite some time until inflation is back under control. Beginning on Tuesday, the Preliminary February IHS Markit Manufacturing PMI report came in higher at 47.8, while the Preliminary February IHS Markit Services PMI came in higher at 50.5. The January Existing Home Sales report clocked in at 4M painting a rising interest rate pressured selling/buying environment evidenced in prices moderating and time on the market increasing. On Wednesday, the weekly MBA Mortgage Applications Index report unsurprisingly confirmed a whopping 13.3% drop as perspective buyers have had to swallow higher interest rates making home buying less and less attractive. On Thursday, the Initial jobless claims report for the week ending February 18 confirmed another 3k drop to 192k, while the continuing jobless claims report for the week ending February 11 likewise showed a 37k fall to 1.654M. The second estimate for Q4 GDP report confirmed a downward revision to 2.7% growth driven by personal spending growth that dropped nearly a 1pt to 1.4%. However, the GDP Price Deflator was moved up to 3.9%, while the personal consumption expenditures index was also moved up to 3.7%. The Weekly EIA crude oil inventories report confirmed a 7.65M barrel build, while the Weekly EIA Natural Gas Inventories report confirmed a 71 bcf draw. On Friday, the January Personal Income report came in at .6% & the January Personal Spending report was at 1.8%, while the January PCE Prices report clocked in at .6%. The January New Home Sales report came in at 670K further confirm a decline. The Final February University of Michigan Consumer Sentiment report came in at 67.

At the end of the week, the S&P 500 closed at 3,970.04 (-2.7%) for the week and is now up 3.4% YTD. 10 of the 11 sectors closed in the red with the consumer discretionary & the communication services sectors taking the largest hit falling by 4.4%. The 6.82% weighting of the shares of Apple (AAPL) fell this week as it closed at $146.71, -4.55% over the last 5-days, as did, the shares of EV giant Tesla (TSLA) that closed at $196.88, -2.55% over the last 5-days and is up 59.83% YTD.

The Dow 30 slipped to close at 32,816.90 (-3%) and is now down 1.0% YTD. The Walt Disney Company (DIS) closed at $105.22, down 2.63% over the last 5-day. Disney recently confirmed that it plans to cut 7k jobs & eliminate $5.5B costs overall. Nike (NKE) closed at $124.84, up 2.14% over the last 5-days & plans to release its Q3 fiscal 2023 financial results on Tuesday, March 21, 2023.

The Nasdaq closed the week at 11,394.90 (-3.3%) for the week and is up 18.9% YTD. A bright spot came from NeoGenomics, Inc. (NEO, $15.78, +12.15% over the last 5-days), a leading provider of oncology testing and global contract research services, which announced fourth quarter and full year 2022 results for the period ended December 31, 2022 that beat the market’s expectations this week. NEO’s Q4 Revenue increased 10% to $139 million & their Full Year Revenue increased 5% to $510 million.

The small caps on the Russell 2000 that took a solid hit and closed at 1,890.49 (-2.9%) for the week & is now up +7.3% YTD. The MicroCaps also fell widely this week as the iShares Micro-Cap ETF (IWC) closed at $113.77 dropping 3.56% this week & is now up 5.51% YTD.

Biotech stocks dropped significantly this week. On the larger side of things, the Nasdaq Biotechnology ETF (IBB) moved up and closed at $126.41, -4.30% and is down 3.72% YTD, the NYSE ARCA Biotech Index (^BTK) closed at 5,223.35, -4.63% over the last 5-days and is now down 1.09% YTD, & the SPDR S&P Biotech ETF (XBI) closed at $81.47, down 3.89% over the last 5-days & is now down 1.84% YTD. The 52-week range is is now $61.78-$97.19. The iShares U.S. Healthcare ETF (IYH) closed at $269.59,-1.91% over the last 5-days and is now down 4.98% YTD.

The CBOE Volatility Index (^VIX) closed at $21.67, up +7.44% over the last 5-days & is flat YTD.

FURTHER AFIELD

Beam Global (BEEM, $16.54, up +1.47% over the last 5-days), the leading provider of innovative sustainable products and technologies for electric vehicle (EV) charging, energy storage, energy security and outdoor media, announced that Beam Global’s CEO Desmond Wheatley will present at our sister organization’s Tribe Public’s Webinar Presentation and Q&A Event titled “Sustainable Products Solving EVs’ Biggest Challenges.” The Event is scheduled to begin at 8:30am Pacific/11:30am Eastern on February 28, 2023. To register to join the complimentary, ZOOM webinar-based event, please visit Tribe Public LLC at BEEMFEB28.TribePublic.com. Once registered, participants may begin forwarding their questions for BeamGlobal’s management to Tribe Public at research@tribepublic.com or share their questions via the ZOOM chat feature during the event. I will host the event and relay all questions to management.

Shares of JPMorgan (JPM) closed at $140.89, -.66% over the last 5-days. On Feb. 23, Chase marked the grand opening of a new Community Center branch in West Philadelphia, the first of its kind in the city and only one of 15 Community Centers nationwide.

On Feb. 21, JPMorgan filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2022 with the SEC. The report is available on the SEC’s website at https://www.sec.gov and will be available on the Firm’s Investor Relations website at https://www.jpmorganchase.com/ir under SEC Filings & Other Disclosures.

Shares of Amazon.com, Inc. (AMZN) closed $93.50, -4.74% over the last 5-days. On Feb. 22, Amazon and 1Life Healthcare, Inc. (NASDAQ: ONEM) announced that Amazon completed its acquisition of One Medical. One Medical’s seamless in-office and 24/7 virtual care services, on-site labs, and programs for preventive care, chronic care management, common illnesses, and mental health concerns have been delighting people for the past 15 years. Together, Amazon and One Medical look to deliver exceptional health care to more people to achieve better health outcomes, better care experiences, and more value, within a better care team environment. For a limited time, One Medical is offering annual memberships at the discounted price of $144 for the first year (regularly $199/year), the equivalent of $12 per month, to new customers. Redeem the One Medical membership promotion and learn more about what’s included.

Shares of Microsoft Corp. (MSFT) closed at $249.22, -4.93% over the last 5-days. On Feb. 21, Microsoft and NVIDIA announced the companies have agreed to a 10-year partnership to bring Xbox PC games to the NVIDIA® GeForce NOW™ cloud gaming service, which has more than 25 million members in over 100 countries. The agreement will enable gamers to stream Xbox PC titles from GeForce NOW to PCs, macOS, Chromebooks, smartphones and other devices. It will also enable Activision Blizzard PC titles, such as Call of Duty, to be streamed on GeForce NOW after Microsoft’s acquisition of Activision closes.

Shares of Salesforce, Inc. (CRM) closed at $162.22, -3.50% over the last five days. Salesforce will release its fourth quarter and full fiscal year 2023 results on Wednesday, Mar. 1, 2023, after the close of the market.

Shares of Intel (INTC) fell 10.85% to close at $25.14 over the last 5-days. On Feb. 22, Intel published its Product Security Report for 2022, underscoring the company’s long-standing commitment to product security assurance. The fourth-annual report demonstrates that Intel’s proactive investments were responsible for finding and mitigating 93% of all vulnerabilities addressed over the past four years. Additional key findings from the report include: 93% of the 243 vulnerabilities addressed in 2022 directly resulted from Intel’s proactive investments in product security assurance, 137 (56%) of the 243 common vulnerabilities and exposures (CVEs) published in 2022 were discovered internally by Intel employees & Of the 106 vulnerabilities reported by external researchers in 2022, 90 vulnerabilities (85%) were reported through Intel’s Bug Bounty program.

Shares of NVIDIA (NVDA), a pioneer in accelerated computing, closed at $232.86, +5.84% over the last 5-days. On Feb. 22, Nvidia reported revenue for the fourth quarter ended January 29, 2023, of $6.05 billion, down 21% from a year ago and up 2% from the previous quarter, Fiscal-year revenue of $27.0 billion, flat from a year ago, & Quarterly and annual return to shareholders of $1.15 billion and $10.44 billion, respectively.

Cathie Wood’s ARK Innovation ETF (ARKK) closed at $38.44, -8.52% over the last 5-days.

The Technology Select Sector SPDR Fund (XLK) closed at $136.09, -3.88% over the last 5-days.

Shares of McDonald’s (MCD) closed at $263.68, -.81% over the last 5-days. On Feb, 2, McDonald’s Board of Directors declared a quarterly cash dividend of $1.52 per share of common stock payable on March 15, 2023 to shareholders of record at the close of business on March 1, 2023.

On Jan. 31, McDonald’s Corporation announced results for the fourth quarter and year ended December 31, 2022. Global comparable sales increased over 12% for the quarter, with double-digit growth across all segments. Digital Systemwide sales* in their top six markets were over $7 billion for the quarter, representing more than 35% of their Systemwide sales. Full year comparable sales grew over 10%, and comparable guest counts grew 5%.

GOLD & SILVER

Gold prices closed at $1869/oz., -$23/oz. & silver prices closed at $21.75/oz., -$.28/oz. for the week.

Hecla Mining (HL) closed at $4.98, -1.97% over the last 5-days. On Feb. 21, Mine Vision Systems announced that they have entered into a multi-year agreement with Hecla to introduce the FaceCapture™ mapping system (FaceCapture) into two of its mines in North America.

First Majestic (AG) closed at $5.98, -16.71% over the last 5-days. First Majestic announced the consolidated financial results for the Company’s fourth quarter and year ended December 31, 2022. The full version of the financial statements and the management discussion and analysis can be viewed on the Company’s website at www.firstmajestic.com, on SEDAR at www.sedar.com and EDGAR at www.sec.gov. They highlighted a record production of 31.3 million silver equivalent ounces, consisting of 10.5 million silver ounces and 248,394 gold ounces, or a 16% increase compared to 2021.

MEMES CENTRAL

AMC Entertainment (AMC) closed at $6.20, +18.10% & (APE) closed at $2.16, -10.74% over the last 5-days. AMC will report its results for the fourth quarter and year ended December 31, 2022, after the market closes on Tuesday, February 28, 2023. Investors and interested parties should go to the website (https://investor.amctheatres.com/corporate-overview/) at least 15 minutes before the earnings webcast to register, and/or download and install any necessary audio software one Tuesday, February 28, 2023 at 4:00 p.m. CST / 5:00 p.m. EST.

GameStop (GME) closed at $19.54,-9.54% over the last 5-days as the shorts lost overall this week.

Seanergy Maritime Holdings Corp. (SHIP) closed at $6.27, +17.20% over the last 5-days. On Feb. 15, Seanergy announced that its Board of Directors has determined to effect a 1-for-10 reverse stock split of the Company’s issued and outstanding shares of common stock, effective at the opening of trading on February 16, 2023. At the special meeting of the shareholders of the Company held on February 7, 2023, Seanergy’s shareholders approved a reverse stock split by a ratio of not less than 1-for-8 and not more than 1-for-12 and granted the Board the authority to determine to effect the reverse stock split and the exact split ratio within this range. The Board approved the reverse stock split on February 9, 2023. In addition, the Company announced that its Chairman and Chief Executive Officer, Mr. Stamatis Tsantanis, intends to purchase an aggregate of up to $1,000,000 in the Company’s common shares in the open market, following the effective date of the reverse stock split. This follows the previously announced open market purchases of 300,000 common shares concluded by Mr. Tsantanis in the past six months.

CRYPTO & BITCOIN

Bitcoin (BTC) closed at $23,201.82, -6.55% over the last 5-days at the time this report was prepared.

ENERGY

The Energy Select Sector SPDR Fund or ETF (XLE) closed at $84.66, -3.37% over the last 5-days.

Chevron (CVX) closed at $162.41, 2.50% over the last 5-days. On Feb 21, Chevron New Ventures PTE. LTD. and the Egyptian Ministry of Petroleum and Mineral Resources (MOPMR) announced that they have signed a memorandum of understanding (MoU) to share best practices and expertise related to the reduction of methane emissions.

Warren Buffet’s pick in the sector, Occidental Petroleum (OXY) closed at $58.98, -5.63% over the last 5-days. On Feb. 22. Occidental announced that Ken Robinson, who currently serves on the Boards of Directors for Abercrombie & Fitch, Paylocity and Morgan Stanley U.S. Banks, and formerly served as Senior Vice President of Audit and Controls at Exelon Corporation, has been elected to its Board of Directors, effective as of February 16, 2023.

Occidental will announce its fourth quarter 2022 financial results after close of market on Monday, February 27, 2023, and will hold a conference call to discuss results on Tuesday, February 28, 2023, at 1 p.m. Eastern/12 p.m. Central. The conference call may be accessed by calling 1-866-871-6512 (international callers dial 1-412-317-5417) or via webcast at oxy.com/investors. Participants may pre-register for the conference call at https://dpregister.com/sreg/10173524/f531c7c588.

Oil prices closed down 3.9% at $76.60/bbl and is down 4.6% YTD.

NEXT WEEK

The markets will be closed on Monday, President’s Day and the will have 4 full trading sessions in the stock market thereafter.

VP WATCHLIST UPDATES

Please review a select group of emerging names below and their updates below:

Shares of ADT Inc. (ADT), the most trusted brand in smart home and small business security, closed at $7.92, -4% over the last 5-days.

ADT will release its fourth quarter and full year 2022 financial results before the market opens on Tuesday, Feb. 28, 2023. Following the release, management will host a conference call at 10:00 a.m. ET to discuss the financial results and lead a question-and-answer session. Participants may listen to a live webcast through the investor relations website at investor.adt.com.

Shares of Atossa Therapeutics, Inc. (Nasdaq: ATOS), a clinical-stage biopharmaceutical company seeking to discover and develop innovative medicines in areas of significant unmet medical need in oncology, with a current focus on breast cancer and radiation-induced lung injury, closed at $.7457, up -7.94% over the last 5-days and is up +40.70% YTD.

- On Feb. 23, Atossa announced that the first patient has been dosed in the Phase 2 EVANGELINE (Endoxifen Versus exemestANe GosEreLIn) study. EVANGELINE is a randomized non-inferiority trial of Atossa’s patented Selective Estrogen Receptor Modulator (SERM), (Z)-endoxifen, and exemestane plus goserelin as a neoadjuvant treatment for pre-menopausal women with Grade 1 or 2 Estrogen Receptor positive (ER+) / Human Epidermal Growth Factor Receptor 2 negative (HER2-) breast cancer. Participants will receive neoadjuvant treatment for up to six months, followed by surgery. The study is expected to enroll approximately 175 patients at up to 25 sites across the United States. The primary objective of the EVANGELINE study is to evaluate the endocrine sensitive disease (ESD) rate, measured by Ki-67 (a proliferation marker prognostic for disease free survival), after four weeks of treatment with (Z)-endoxifen compared to treatment with current standard of care, exemestane plus goserelin. Exemestane is an aromatase inhibitor designed to block the synthesis of estrogen and slow the growth of ER+ cancers. Goserelin is a medication given to block the ovaries from making estrogen, also called ovarian function suppression (OFS). In premenopausal women, OFS is associated with significant morbidity and inadequate compliance, which compromises efficacy and increases the risk of mortality.
  
  (Z)-endoxifen is the most active anti-estrogen metabolite of tamoxifen that potently blocks ERa and binds to and disrupts protein kinase C beta one function (PKCb1, a known oncogenic protein). In an earlier Phase 2 study, treatment with (Z)-endoxifen resulted in a 65.1% reduction in Ki-67. This is potentially clinically meaningful because numerous studies by other groups have shown that reducing Ki-67 is prognostic for 5-year disease free survival. (Z)-endoxifen administered as monotherapy may also obviate the need for OFS in premenopausal women and potentially reduce breast cancer cell proliferation.
  
  Dr. Steven Quay, Atossa’s President and Chief Executive Officer stated, “We are excited to kick-off this important trial, a significant achievement in our development strategy. Approximately 78% of breast cancers are ER+ / HER2- and premenopausal women diagnosed with this disease need more effective and tolerable treatment options; specifically new treatments that do not require ovarian function suppression. We feel (Z)-endoxifen has the potential to change the treatment paradigm for these patients.” LEARN MORE.
- On Feb. 13, Atossa Therapeutics, Inc. (Nasdaq: ATOS), a clinical stage biopharmaceutical company developing innovative proprietary medicines to address significant unmet need in cancer, announced that the United States Patent and Trademark Office (USPTO) has granted a new patent (No. 11,572,334) directed to (Z)-endoxifen encapsulated in an enteric capsule. Enteric capsules have an acid resistant coating to prevent them from dissolving when they pass through the stomach. Enteric capsules are dissolved when they pass through an alkaline environment, which is usually when they reach the small intestine. Delivering oral (Z)-endoxifen via an enteric capsule prevents breakdown of the endoxifen in the stomach. This patent further reinforces Atossa’s broad Intellectual Property portfolio related to (Z)-endoxifen. A short ‘explainer’ video about the new patent can be found here: https://youtu.be/MrcEYp4Pptc. Dr. Steven Quay, Atossa’s President and Chief Executive Officer stated, “We are very pleased with the scope and breadth of this new key patent. It ensures that in the U.S., Atossa will have the only (Z)-endoxifen treatment delivered orally with an enteric capsule, which we believe is the optimal way to deliver the drug. This new patent, further strengthens our intellectual property estate and should create long-term stockholder value. There are a number of research-level medical applications of endoxifen outside of breast cancer, including in bipolar disorder disease in adults and in modulating genetically modified, cell-based therapies for cancer and immune diseases, that may require access to our endoxifen patents and technologies. Atossa will monitor these activities carefully as they approach commercialization, with an eye to establishing appropriate licensing arrangements for the benefit of Atossa shareholders.”

The multi-billion-dollar global fertility market is predicted to reach approximately US$47.9 billion by 2030, yet remains severely underserved with many patients (upwards of 90% by many estimates) unable to access affordable treatment. INVO Bioscience, Inc. (NASDAQ: INVO) offers the INVOcell solution which provides an advanced, effective and affordable infertility treatment to help increase access to care. INVO is commercially advancing INVOcell through the opening of INVO Centers, opportunistically now pursuing acquisitions of established fertility (IVF) clinics in the U.S., and continuing to offer the technology to existing fertility practices. Shares INVO closed at $.61 and is up 43.87% YTD. The 52-wk range is $.3290 – $3.11.

On Jan. 16, BioSpectrum published an article titled “INVO Bioscience introduces next-gen technologies to fertility market in Taiwan.”

On Jan. 5, INVO Bioscience announced it has entered an exclusive distribution agreement with Ming Mei Technology Co. Ltd (“Ming Mei”) for Taiwan. The agreement will have an initial 1-year term with renewals. Ming Mei is a leading distributor of fertility-based devices and components in Taiwan helping to bring the latest and most advanced medical equipment into the region. Ming Mei estimates it has approximately 90% coverage of reagents and consumables in the reproductive medicine market in Taiwan. With strong customer relationships in the region, and their familiarity with the field of reproductive medicine, Ming Mei is ideally suited to expand distribution of INVOcell in Taiwan. Taiwan is a destination for assisted reproductive technology (ART) throughout Asia and also has the lowest birthrate in the world. Taiwan’s birth rate has dropped as a result of similar trends elsewhere in Asia, such as later marriage and increasing cost of living. Further, the average age of patients requiring therapy is rising. Fortunately, according to the statistics published by “ICMART”, the overall implantation rate of therapy in Taiwan ranked second worldwide, almost equal to the level in the U.S., and a leading country in Asia. The stable high success rate derives from updated medical research and enriched clinical experience from the physicians, advanced laboratory facilities and technology as well as patient-centered customized treatment plans (depending on their age, ovarian functions and causes of infertility, etc.). Prior to the pandemic, in 2019 there were approximately 55,000 ART cases in Taiwan, an increase of approximately 55% compared to 2016. In July 2021, the government in Taiwan implemented a subsidy plan for ART with the goal of encouraging more local married couples to undergo ART treatments. The subsidies are also available to transnational couples in which one spouse holds a Taiwanese ID card.

On Jan. 3, INVO announced it has signed an agreement with Shelly W. Holmström, M.D. FACOG, to serve as the physician operator for the Company’s soon to be opened Tampa, Florida INVO Center.

READ our recently published story that is gaining traction titled “INVO Bioscience (NASDAQ: $INVO), A Company Seeking To Address A Massively Underserved Fertility Market.”

- On Nov. 30, INVO announced the birth of the first baby in Malaysia utilizing the INVOcell solution. The healthy baby boy weighed 3.53 kg and was born on November 11, 2022 at Tuanku Mizan Military Hospital in Kuala Lumpur. Physicians at Advanced Reproductive Centre (ARC), at Hospital Canselor Tuanku Muhriz (HCTM), at the National University of Malaysia conducted the IVC procedure. The patient was part of a prospective peer reviewed study of INVOcell compared to conventional IVF (“cIVF”) that took place at ARC at HCTM. The study, titled “Comparison of Treatment Outcomes among Sibling Oocytes Using Different Culture Systems—Conventional IVF versus INVOcell Device—And Evaluation of INVOcell User Satisfaction: The INVOcIVF Study,” was published in the International Journal of Environmental Research and Public Health. “We couldn’t be more pleased to have been a part of this family’s journey towards parenthood,” commented Steve Shum, CEO of INVO Bioscience. “The INVOcell solution is playing a key role in providing families across the world an alternative method to parenthood by leveraging its innovative medical device to allow fertilization and early embryo development to take place in vivo within the woman’s body; an approach that provides for affordable, high-quality, patient-centered fertility care.” Key findings of the study included:
  - The fertilization rate and good embryo quality were comparable (not significantly different) between INVOcell and cIVF.
  - Although both methods produce similar fertilization rates and good-quality embryos, the blastulation rates were better in the INVOcell group.
  - INVOcell can be used as an alternative method for reproductive treatment in carefully selected patients without jeopardizing outcomes.
  - cIVF is costly and not applicable in most rural and district areas, therefore, the INVOcell can be utilized as a cost-effective alternative to cIVF without sacrificing comfort and outcomes.

Shares of Chinook Therapeutics, Inc. (KDNY), a biopharmaceutical company focused on the discovery, development and commercialization of precision medicines for kidney diseases, closed at $21.71, -1.45% over the last 5-days after recently establishing a new 52-wk high of $27.44 recently.

- On Feb. 15, Chinook announced the appointment of Andrew Oxtoby as chief commercial officer. Andrew has over two decades of experience in the pharmaceutical and biotechnology industry, including extensive global experience involving numerous product launches across a wide array of therapeutic areas. He joins Chinook from Aimmune Therapeutics, where he most recently served as president and CEO and led the organization’s integration into its new parent company, Nestlé Health Science, and expanded Aimmune’s portfolio and therapeutic focus beyond food allergy into disease states related to gastrointestinal conditions. Prior to his role as president and CEO, he served as Aimmune’s chief commercial officer with a focus on building the company’s commercial organization in both the United States and Europe. Before joining Aimmune, Andrew spent 16 years at Eli Lilly and Company where he was responsible for Lilly’s U.S. insulin business as vice president of U.S. Diabetes Connected Care and Insulins, after previously serving as vice president of U.S. diabetes sales. His previous roles at Lilly include vice president of the international oncology business, general manager of the Netherlands operation as well as positions of increasing responsibility in finance, marketing and sales in the U.S. and Europe. Andrew holds an M.B.A. from Harvard Business School and a Bachelor of Science in Mechanical Engineering from Purdue University. He currently serves on the board of Damien Center, a non-profit organization providing support and services to people living with HIV in central Indiana.

Borqs Technologies, Inc. (Nasdaq: BRQS, $.2380 up 14.42% YTD), a global provider of 5G wireless solutions, Internet of Things (IoT) solutions, and innovative clean energy, recently provided the following updates on the Company.

On Dec. 19, Borqs announced the Company has received a letter dated December 13, 2022 (the “Letter”) from the Department of the Treasury on behalf of the Committee on Foreign Investment in the United States (“CFIUS”) stating that the Company is required to negotiate with CFIUS to fully divest its ownership interests and rights in Holu Hou Energy LLC (“HHE”) due to HHE solar energy storage system and EnergyShare technology for Multi-Dwelling Residential Units (“MDU’s”) being deemed a critical technology and therefore a potential national security risk. As stated in the Letter, HHE is considered a top ten solar energy storage supplier in Hawaii, has only been increasing its dominant market share, expects to grow at an exponential rate, and focuses on multi-family dwelling units which are common in military housing. Due to Borqs’ IoT software development and hardware sourcing capabilities in China, CFIUS is concerned that through Borqs, the PRC could gain significant visibility and exert influence over HHE’s business operations and get access to HHE critical technology. CFIUS is requiring the Company to design a plan to mitigate all identified national security risks to the satisfaction of CFIUS. Borqs intends to comply to the requirements from CFIUS and enter into a National Security Agreement with various departments of the U.S. Government with a plan that is effective, monitorable and verifiable to voluntarily divest Borqs’ investment interests and rights in HHE (the “Plan”). HHE’s commercialization of its solar energy storage system and novel EnergyShare technology for MDU’s has enabled the company to open up a new market segment for renewable energy in the USA – likely worth several billions of dollars. In the last year the Company’s MDU development pipeline has reached thousands of individual units in Hawaii alone, with California MDU potential being at least one to two orders of magnitude higher in the coming years. One segment of this new market is for communities of military and other government personnel. The overall MDU opportunity is significant for the company and significant for the USA. Since Borqs’ financial support in HHE starting from October 2021, HHE has signed approximately $50 million in contracts and has a growing pipeline approaching half a billion dollars. They believe this voluntary mitigation will enable the tremendous inherent value of HHE to be realized and that the divestment can be a profitable transaction for Borqs’ shareholders. The Plan to mitigate will include engaging a nationally recognized investment bank with experience in administering competitive sales and auction processes, assigning and hiring of security and monitoring personnel to directly communicate with CFIUS, immediate and complete removal of all Borqs administrative and technical influence over HHE, immediate voluntary reduction of Borqs ownership of HHE from a majority to a minority position and with the target of divesting all. The Company believes such points will enable the Company to accomplish the divestment in an orderly manner.
On Dec.8, Borqs announced its subsidiary, Holu Hou Energy (HHE), has received multiple purchase orders for its HoluPower xP solar energy storage systems for installation at homeowner locations in the Greater San Diego area in California. These orders represent the first for the Company in California. Whereas in Hawaii HHE works to develop and construct Single-Family Residential projects as an “end to end” provider, the Company will target the California homeowner market through already existing channel partners that will sell and construct the projects. For Multi-Dwelling Unit (MDU) Residential properties in the State, the Company will initially target apartment owners, REITs and other MDU stakeholders directly, then partner with existing licensed contractors for system construction. HHE has been focused on the Hawaii market since it began commercial shipments in 2020, in order to become successfully established in the largest market in the United States based upon solar installation penetration. Now it is turning to California, the largest market in terms of size of available opportunity. HHE recently completed the testing and documentation required for the HoluPower xP to be listed as an approved product by the California Energy Commission. The Company expects to be listed by early January 2023, after which permitting and installations can commence. In Hawaii, Holu Hou Energy has quickly become a leader for solar energy storage systems in the Single-Family Residential market, and has essentially created the previously untapped Multi-Dwelling Unit (“MDU”) Residential market for renewable energy by virtue of its “EnergyShare” technology. The same leading product attributes will benefit MDU property owners and homeowners in California. The potential available MDU market in California is believed to be in the billions of dollars. EnergyShare enables networked systems to share excess generation behind their respective utility meters, a game-changer for improving the project economics for the MDU market, including for low-income housing, rental property units and Home Owners Association managed condominiums and town homes. EnergyShare enables more energy to be delivered to load, and fewer batteries to be installed than the standard approach of a unit-by-unit installation.

On Dec. 8, Borqs announced its subsidiary, Holu Hou Energy (HHE), has received multiple purchase orders for its HoluPower xP solar energy storage systems for installation at homeowner locations in the Greater San Diego area in California. These orders represent the first for the Company in California. Whereas in Hawaii HHE works to develop and construct Single-Family Residential projects as an “end to end” provider, the Company will target the California homeowner market through already existing channel partners that will sell and construct the projects. For Multi-Dwelling Unit (MDU) Residential properties in the State, the Company will initially target apartment owners, REITs and other MDU stakeholders directly, then partner with existing licensed contractors for system construction. HHE has been focused on the Hawaii market since it began commercial shipments in 2020, in order to become successfully established in the largest market in the United States based upon solar installation penetration. Now it is turning to California, the largest market in terms of size of available opportunity. HHE recently completed the testing and documentation required for the HoluPower xP to be listed as an approved product by the California Energy Commission. The Company expects to be listed by early January 2023, after which permitting and installations can commence. In Hawaii, Holu Hou Energy has quickly become a leader for solar energy storage systems in the Single-Family Residential market, and has essentially created the previously untapped Multi-Dwelling Unit (“MDU”) Residential market for renewable energy by virtue of its “EnergyShare” technology. The same leading product attributes will benefit MDU property owners and homeowners in California. The potential available MDU market in California is believed to be in the billions of dollars. EnergyShare enables networked systems to share excess generation behind their respective utility meters, a game-changer for improving the project economics for the MDU market, including for low-income housing, rental property units and Home Owners Association managed condominiums and town homes. EnergyShare enables more energy to be delivered to load, and fewer batteries to be installed than the standard approach of a unit-by-unit installation.

- To view a video clip of a recently completed HHE Multi-Unit Residential project go to: https://www.youtube.com/watch?v=kakbynGM-fQ

Shares of InMed Pharmaceuticals Inc. (INM), a leader in the research, development and manufacturing of rare cannabinoids, closed at $1.33.

On Feb. 17, InMed announced financial results for the second quarter of fiscal year 2023 which ended December 31, 2022 and highlighted that they closed calendar year 2022 with strong cash position of $11.5 million, that they are approaching completion of enrollment for Ph 2 clinical trial in EB, & that they are adavincing research using rare cannabinoids in treating glaucoma and neurodegenerative diseases such as Alzheimer’s, Huntington’s and Parkinson’s.
On Jan. 10. InMed issued a press release that outlined their key accomplishments from 2022 and provided business update and catalysts for 2023 including the following interesting milestones for 2023: Complete Phase 2 clinical trial enrollment in Epidermolysis Bullosa in 1Q 2023, Progress preclinical research in glaucoma in preparation for human trials, & Advance research using rare cannabinoids in treating neurodegenerative diseases such as Alzheimer’s, Huntington’s and Parkinson’s. Please read our latest PROGRESS REPORT by clicking here.

On Nov. 17, Tribe Public’s Webinar Presentation and Q&A Event was co-hosted by Eric A. Adams, CEO & Eric C. Hsu, PhD, Senior Vice President, Pre-Clinical Research & Development of InMed Pharmaceuticals (NASDAQ: INM. They delivered a presentation titled “Exploring The Neuroprotective Qualities of Rare Cannabinoids”& addressed a Q&A session at the end of the presentation. You may now watch the event video art the Tribe Public YouTube Channel at this link.

Cytovia Therapeutics aims to accelerate patient access to transformational cell therapies and immunotherapies, addressing several of the most challenging unmet medical needs in cancer. Cytovia focuses on harnessing the innate immune system by developing complementary and disruptive iPSC-derived Natural Killer (iNK) cell and Flex-NK™ bispecific antibody platforms. The company is developing three types of iNK cells: unedited iNK cells, TALEN® gene-edited iNK cells with improved function and persistence, and TALEN® gene-edited iNK cells with chimeric antigen receptors (CAR-iNKs) to improve tumor-specific targeting. The second complementary cornerstone technology is a quadrivalent multifunctional antibody platform designed to engage natural killer cells by targeting NKp46 using Cytovia’s proprietary Flex-NK™ technology. These two technology platforms are being used to develop treatment for patients with solid tumors such as HCC and glioblastoma as well as hematological malignancies such as refractory multiple myeloma. Headquartered in Aventura, FL., Cytovia has research and development laboratories in Natick, MA. The company’s own R&D work is augmented through scientific partnerships with Cellectis, CytoImmune, the Hebrew University of Jerusalem, INSERM, the New York Stem Cell Foundation, the National Cancer Institute, and the University of California San Francisco (UCSF). Cytovia has a partnership with CytoLynx Therapeutics focused on research and development, manufacturing, and commercialization activities in Greater China.

On Dec. 9, 2022, Cytovia announced new preclinical data for its CD38-targeted Flex-NK™ bispecific antibody at the American Society of Hematology’s 64th Annual Meeting (ASH 2022) taking place in New Orleans, LA, and virtually December 10-13th, 2022. “We’re delighted to see further progress on our CD38-targeted Flex-NK™ bispecific antibody program, with a pre-clinical package that supports clinical evaluation in 2023,” commented Cytovia CEO Dr. Daniel Teper. “The data presented at ASH suggests that CYT-338, our CD38-targeted Flex-NK™ Bispecific Antibody, has a differentiated profile compared to daratumumab, the leading CD38-targeted monoclonal antibody and that CYT-338 may have the ability to overcome NK cell exhaustion and dysfunction.” Cytovia believes that by redirecting and activating NK cells to kill myeloma cells, bispecific antibodies have the potential to offer new options for patients not responding to first lines of treatment.”

Thanks again for your attention this week. Please continue to share your thoughts, questions, & ideas as we move forward.

In the meantime, please enjoy the balance of the weekly newsletter’s videos, quotes, updates and let’s find ways to crush it again this year!

Investing & Inspiration

“It is the fight alone that pleases us, not the victory.” – Blaise Pascal
“Do exactly what you would do if you felt most secure.” – Meister Eckhart
“Life lived for tomorrow will always be just a day away from being realized.” – Leo Buscaglia
“Wisdom is oftentimes nearer when we stoop than when we soar.” – Wordsworth
“Take chances, make mistakes. That’s how you grow. Pain nourishes your courage. You have to fail in order to practice being brave.” – Mary Tyler Moore
“A single twig breaks, but the bundle of twigs is strong.” – Tecumseh
“If one does not know to which port one is sailing, no wind is favorable.” – Lucius Annaeus Seneca
“There is little that can withstand a man who can conquer himself.” – Louis XIV
“The limits of the possible can only be defined by going beyond them into the impossible.” – Arthur C. Clarke
“Be faithful in small things because it is in them that your strength lies.” – Mother Teresa
“The future rewards those who press on. I don’t have time to feel sorry for myself. I don’t have time to complain. I’m going to press on.” – Barack Obama
“By three methods we may learn wisdom: First, by reflection, which is noblest; Second, by imitation, which is easiest; and third by experience, which is the bitterest.” – Confucius
“No man was ever wise by chance.” – Lucius Annaeus Seneca
“Progress is man’s ability to complicate simplicity.” – Thor Heyerdahl
“It is not in the stars to hold our destiny but in ourselves.” – William Shakespeare
“It does not matter how slowly you go as long as you do not stop.” – Confucius
“I want to put a ding in the universe.” – Steve Jobs
“Research is creating new knowledge.” – Neil Armstrong
“The reward for work well done is the opportunity to do more.” – Jonas Salk
“Man is a creative retrospection of nature upon itself.” – Karl Wilhelm Friedrich Schlegel
“There’s something about taking a plow and breaking new ground. It gives you energy.” – Ken Kesey
“Success seems to be largely a matter of hanging on after others have let go.” – William Feather
“The essential conditions of everything you do must be choice, love, passion.” – Nadia Boulanger
“More business is lost every year through neglect than through any other cause.” – Rose Kennedy
“Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.” – Archimedes
“A person who won’t read has no advantage over one who can’t read.” – Mark Twain
“The best way out is always through.” – Robert Frost
“Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible.” – Francis of Assisi
“Without labor nothing prospers.” – Sophocles
“Intellectuals solve problems, geniuses prevent them.” – Albert Einstein
“This is the precept by which I have lived: Prepare for the worst; expect the best; and take what comes.” – Hannah Arendt
“The best and most beautiful things in the world cannot be seen or even touched – they must be felt with the heart.” – Helen Keller
“He who is brave is free.” – Lucius Annaeus Seneca
“When something is important enough, you do it even if the odds are not in your favor.” – Elon Musk
“I choose a block of marble and chop off whatever I don’t need.” – Auguste Rodin
“Hope is the only bee that makes honey without flowers.” – Robert Green Ingersoll
“He who knows that enough is enough will always have enough.” – Lao Tzu
“Plans to protect air and water, wilderness and wildlife are in fact plans to protect man.” – Stewart Udall
“In order to carry a positive action we must develop here a positive vision.” – Dalai Lama
“A hero is someone who understands the responsibility that comes with his freedom.” – Bob Dylan
“Inflation destroys savings, impedes planning, and discourages investment. That means less productivity and a lower standard of living.” – Kevin Brady
“If we give something positive to others, it will return to us. If we give negative, that negativity will be returned.” – Allu Arjun
“A good plan violently executed now is better than a perfect plan executed next week.” ~ George S. Patton
“You must do the things you think you cannot do.”- Eleanor Roosevelt
“Success is dependent on effort.” – Sophocles
“Nobody who ever gave his best regretted it.” – George Halas
“Lots of people want to ride with you in the limo, but what you want is someone who will take the bus with you when the limo breaks down.” ~ Oprah Winfrey
“And when I breathed, my breath was lightning.” – Black Elk
“Moderation is the silken string running through the pearl chain of all virtues.” – Joseph Hall
“You are the sum total of everything you’ve ever seen, heard, eaten, smelled, been told, forgot – it’s all there. Everything influences each of us, and because of that I try to make sure that my experiences are positive.” – Maya Angelou
“If you want a guarantee, buy a toaster.” – Clint Eastwood
“We are an impossibility in an impossible universe.” – Ray Bradbury
“If you think in terms of a year, plant a seed; if in terms of ten years, plant trees; if in terms of 100 years, teach the people.” – Confucius
“I’d rather attempt to do something great and fail than to attempt to do nothing and succeed.” – Robert H. Schuller
“Do your little bit of good where you are; it’s those little bits of good put together that overwhelm the world.” Desmond Tutu
“It takes considerable knowledge just to realize the extent of your own ignorance.” – Thomas Sowell
“Do not dwell in the past, do not dream of the future, concentrate the mind on the present moment.” – Buddha”
Surprise is the greatest gift which life can grant us.” – Boris Pasternak
“Trust in dreams, for in them is hidden the gate to eternity.” – Khalil Gibran
“Always be yourself, express yourself, have faith in yourself, do not go out and look for a successful personality and duplicate it.” – Bruce Lee
“All life is an experiment. The more experiments you make the better.” – Ralph Waldo Emerson
“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” – Colin Powell
“There is more to life than increasing its speed.” – Mahatma Gandhi
“Your attitude is like a box of crayons that color your world. Constantly color your picture gray, and your picture will always be bleak. Try adding some bright colors to the picture by including humor, and your picture begins to lighten up.” – Allen Klein
“Definiteness of purpose is the starting point of all achievement.” – W. Clement Stone
“Success usually comes to those who are too busy to be looking for it.” – Henry David Thoreau
“In matters of truth and justice, there is no difference between large and small problems, for issues concerning the treatment of people are all the same.” – Albert Einstein
“Life is too short for long-term grudges.” – Elon Musk
“There cannot be a crisis next week. My schedule is already full.” – Henry Kissinger
“Success consists of getting up just one more time than you fall.” – Oliver Goldsmith
“The Earth is the cradle of humanity, but mankind cannot stay in the cradle forever.” – Konstantin Tsiolkovsky
“Ours is a world of nuclear giants and ethical infants. We know more about war that we know about peace, more about killing that we know about living.” – Omar N. Bradley
“Beauty surrounds us, but usually we need to be walking in a garden to know it.” – Rumi
“But man is not made for defeat. A man can be destroyed but not defeated.” – Ernest Hemingway
“Don’t watch the clock; do what it does. Keep going.” – Sam Levenson
“Let there be work, bread, water and salt for all.” – Nelson Mandela
“The social object of skilled investment should be to defeat the dark forces of time and ignorance which envelope our future.” – John Maynard Keynes
“A successful society is characterized by a rising living standard for its population, increasing investment in factories and basic infrastructure, and the generation of additional surplus, which is invested in generating new discoveries in science and technology.” – Robert Trout
“I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones.” – Albert Einstein
“It is the fight alone that pleases us, not the victory.” – Blaise Pascal
“If you can’t describe what you are doing as a process, you don’t know what you’re doing.” – W. Edwards Deming
“Never interrupt your enemy when he is making a mistake.” – Napoleon Bonaparte
“Be sure you put your feet in the right place, then stand firm.” – Abraham Lincoln
“Without investment there will not be growth, and without growth there will not be employment.” – Muhtar Kent
“You have to do your own growing no matter how tall your grandfather was.” – Abraham Lincoln
“Victory has a thousand fathers, but defeat is an orphan.” – John F. Kennedy
“Delete the negative; accentuate the positive!” – Donna Karan
“It’s crazy how fast time flies and how things progress.” – Nathan Chen
“The world is a dangerous place to live; not because of the people who are evil, but because of the people who don’t do anything about it.” – Albert Einstein
“Life isn’t about finding yourself. Life is about creating yourself.” – George Bernard Shaw
“Everything has beauty, but not everyone sees it.” – Confucius
“A man must be big enough to admit his mistakes, smart enough to profit from them, and strong enough to correct them.” – John C. Maxwell
“Walking with a friend in the dark is better than walking alone in the light.” – Helen Keller
“A man who dares to waste one hour of time has not discovered the value of life.” – Charles Darwin
“The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark.” – Michelangelo
“Progress is man’s ability to complicate simplicity.” – Thor Heyerdahl
“I like to encourage people to realize that any action is a good action if it’s proactive and there is positive intent behind it.” – Michael J. Fox
“Nothing is impossible, the word itself says ‘I’m possible’!” – Audrey Hepburn
“But investment in space stimulates society, it stimulates it economically, it stimulates it intellectually, and it gives us all passion.” – Bill Nye
“Bitcoin, in the short or even long term, may turn out be a good investment in the same way that anything that is rare can be considered valuable. Like baseball cards. Or a Picasso.” – Andrew Ross Sorkin
“Life is a tragedy when seen in close-up, but a comedy in long-shot.” – Charlie Chaplin
“No matter what you’re going through, there’s a light at the end of the tunnel and it may seem hard to get to it but you can do it and just keep working towards it and you’ll find the positive side of things.” – Demi Lovato
“Infrastructure investment in science is an investment in jobs, in health, in economic growth and environmental solutions.” – Oren Etzioni
“Educating our children and giving them the skills they need to compete in a global economy is a smart investment in our country’s future.” – Sheldon Whitehouse
“Know thy self, know thy enemy. A thousand battles, a thousand victories.” – Sun Tzu
“If one does not know to which port one is sailing, no wind is favorable.” – Lucius Annaeus Seneca
“Beware of missing chances; otherwise it may be altogether too late some day.” – Franz Liszt
“The sofa is a really important investment for anybody, and I don’t mean financially. You need to find a really great sofa that can transition with you, and you can build from there.” – Jeremiah Brent
“There is no investment you can make which will pay you so well as the effort to scatter sunshine and good cheer through your establishment.” – Orison Swett Marden
“Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.” – Marie Curie
“There is little that can withstand a man who can conquer himself.” – Louis XIV
“In tennis, you strike a ball just after the rebound for the fastest return. It’s the same with investment.” – Masayoshi Son
“A camel makes an elephant feel like a jet plane.” – Jackie Kennedy
“The advance of technology is based on making it fit in so that you don’t really even notice it, so it’s part of everyday life.” – Bill Gates
“Success depends upon previous preparation, and without such preparation there is sure to be failure.” – Confucius, Chinese
“Coming together is a beginning; keeping together is progress; working together is success.” – Edward Everett Hale
“Never do anything against conscience even if the state demands it.”– Albert Einstein
“Education is not only a ladder of opportunity, but it is also an investment in our future.” – Ed Markey
“The true measure of a man is how he treats someone who can do him absolutely no good.” – Samuel Johnson
“In my view, the biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital. Not only is the mere drop in stock prices not risk, but it is an opportunity. Where else do you look for cheap stocks?” – Li Lu
“A successful society is characterized by a rising living standard for its population, increasing investment in factories and basic infrastructure, and the generation of additional surplus, which is invested in generating new discoveries in science and technology.” – Robert Trout
“The best preparation for tomorrow is doing your best today.” – H. Jackson Brown, Jr.
“Friendship marks a life even more deeply than love. Love risks degenerating into obsession, friendship is never anything but sharing.” – Elie Wiesel
“Investing in women’s lives is an investment in sustainable development, in human rights, in future generations – and consequently in our own long-term national interests.” – Liya Kebede
“Success isn’t measured by money or power or social rank. Success is measured by your discipline and inner peace.” – Mike Ditka
“No matter how many goals you have achieved, you must set your sights on a higher one.” – Jessica Savitch
“Start where you are. Use what you have. Do what you can.”– Arthur Ashe
“The secret of getting ahead is getting started.” – Mark Twain
“The amount of work and the amount of both physical and emotional investment it takes to get to the top.” – Drew Bledsoe