DNA Brands Inc (DNAX)

[Ed the Trader]

"My point is that a loan is only TOXIC if it converts. Like the 0% interest that credit cards offer. Let's say you take a $10,000. They charge $400 (4% of loan amount) and give anywhere from 12-18 months to pay it off. Sounds great if you pay it off. If you don't than back interest kicks in and your screwed."

Regardless of the costs involved with producing and selling the first production run, it will be necessary to use all of the revenue generated from those sales to fund the second production run along with its supporting expenses.

The only way that it would become feasible to pay back the loan needed to fund the first production run is if there was a 100% profit margin, and there is not.