DD Support Board and Research Team

[Michael-Goode]

BCCI audited financial issues in Seattle Times


http://seattletimes.com/html/businesstechnology/2023784190_sundaybuzz08xml.html

Excerpt: (emphasis mine)

None of the key numbers match: Previously reported sales of $433,858 morphed into $366,673, a 15 percent drop. Personnel costs rose to $152,254 from $114,415. General and administration expenses, previously shown as $54,510, in fact amounted to $200,078, the audited report says.

As for the latest quarter, ending March 2014, the company reported its loss narrowed to $51,319.

But its financial health is not a pretty picture. Audited sales shrank to $318,246 from the year-ago $366,673. And Baristas reported a mere $5,799 in cash and no other current assets (although it reports $2.9 million in “intangible assets,” which is how companies refer to brand recognition and other fuzzy attributes). The company had $927,369 in total liabilities.

Asked about the stark difference between the audited and unaudited books, CEO Barry Henthorn said sales in the audited report were lower because they omitted amounts that were not backed up by daily sales records. Also, general and administrative expenses rose to reflect stock-based compensation in 2013 that was not previously recognized.