Baristas Coffee Company, Inc. (BCCI)

[BobSinCA]

Dilution history is not on your side, if history predicts the future.

Since March, 2012 there has been almost 50% dilution, going from 202M to 295M shares O/S (caveat: that is per the Statement of Shareholder/Stockholders Equity in the 2013 report -- the following table in that same report shows 210M O/S in March, 2012).

Much if not most of this dilution was as payment for services rendered. Rather than be in the company's expense statement, the value of many of these shares is on the balance sheet -- $7.6M of 'Unidentified Assets,' an amount that is more than four times annual revenues!!! This account increased by $700K in Q4 alone.

(Note to someone asking when audited financials will be available -- likely not until these 'Unidentified Assets' have been identified and/or written off -- and, BCCI has sufficient cash to pay an auditor, as they do not accept shares.)

The good news is, only 300M shares are authorized, so hopefully no more dilution.

The bad news is, the company does have a preferred stock with 30M shares authorized (not sure if the terms of the preferred stock have been disclosed).

Their history is even murkier. The 2012 financial statements show 6.9M shares outstanding at the end of 2012, with 5.4M shares issued in the second quarter in a debt conversion -- but the 2013 financial statements show only 1.5M outstanding at the end of September, 2013, with approximately 6M more shares issued in the fourth quarter -- likely as part of payment for the advertising deal announced on October 1 (PR surprisingly no longer on BCCI website, but it spoke of issuance of a mix of common and preferred stock as payment for $1.7M 'worth' of advertising, the fuel for the current campaign).

Not sure what happened with the 5.4M shares, reference to them is missing from the 2013 report.