Thursday, July 24, 2014 7:49:51 AM
After the last episode with BH posting garbage paperwork, I really did not think he had much choice here. These HAD to be done. Now that they are done (which I'll give hime credit for), folks should evaluate the position the company is in.
1. CASH POSITION : 3K in cash = Really? This is about all I can say.
2. INTANGIBLES VALUATION: While they finally breakdown the details in their valuations, some of the line items really seem to be way overvalued. Ice cream intangibles valued at $125,000 when they have not sold a nickel's worth of ice cream. Write it off boys.
3. GOODWILL
"The intangible assets were purchased along with the hard assets, from the Pangea purchase in December 2009, for $3.5 million in our common stock. After the assets and intangible assets were identified, the remaining $2,770,651 was recorded as goodwill. The Company does not amortize goodwill. Instead, the Company evaluates goodwill annually in the fourth quarter and whenever events or changes in circumstances indicate that it is more likely than not that an impairment loss has been incurred. As of March 31, 2014 and December 31, 2013, the Company determined that no such impairment existed."
"Baristas Coffee Company, Inc. ("Baristas" "The Company) is a Nevada C Corporation that was originally formed on October 18, 1996. The Company was originally formed as InfoSpi.com in 1996, for the purposes of developing, and developed software programs, hired programmers, and procured funding from a venture capital group, prior to merging with Innovative Communications Technologies, in 2001. From that time until 2010, it has had assets, liabilities, operations including employees every year and was engaged with contractors, had revenue and expenses, and/or technology development. On December 22, 2009, it acquired greater than a 60% interest in Pangea Networks, Inc. ("Pangea")/ DBA Baristas and Inc., and it acquired for cash, stock, debt and other consideration, numerous coffee stands in the greater Seattle area through the acquisition of Pangea; In May of 2010 the Company changed its name to Baristas Coffee Company, Inc."
It seems as though a good chunk of $2,770,651 which was recorded as goodwill and still sitting on the books should be written down as an impairment charge unless what they claim to be retaining as such still is actually attributable to the current business model AND it's current operating history.
So after all is said and done, it seems as though over $2M can be ejected from the balance sheet. And, by the way, this was real cash that got pissed away - just over a period of time.
Just my two cents.
Avant Technologies Engages Wired4Tech to Evaluate the Performance of Next Generation AI Server Technology • AVAI • May 23, 2024 8:00 AM
Branded Legacy, Inc. Unveils Collaboration with Celebrity Tattoo Artist Kat Tat for New Tattoo Aftercare Product • BLEG • May 22, 2024 8:30 AM
"Defo's Morning Briefing" Set to Debut for "GreenliteTV" • GRNL • May 21, 2024 2:28 PM
North Bay Resources Announces 50/50 JV at Fran Gold Project, British Columbia; Initiates NI 43-101 Resources Estimate and Bulk Sample • NBRI • May 21, 2024 9:07 AM
Greenlite Ventures Inks Deal to Acquire No Limit Technology • GRNL • May 17, 2024 3:00 PM
Music Licensing, Inc. (OTC: SONG) Subsidiary Pro Music Rights Secures Final Judgment of $114,081.30 USD, Demonstrating Strength of Licensing Agreements • SONGD • May 17, 2024 11:00 AM