DNA Brands Inc (DNAX)

[Ed the Trader]

"Looks like they r in big lots store...do realize what items r sold in these stores.....closed out, clearance, discontinued.....stick a fork in it. Most have been the inventory they liquidated. ..probaly sold everything but the kitchen sink..and thats going next week."

I am rather surprised at how uninformed many posters are here regarding DNAX. In their December 18, 2014 investor news on the company's website, they made it clear that they had sold a large portion of their inventory at a loss:

"The Company has just received purchase orders to sell a large portion of its existing energy drink inventory, with shipping to take place late December with 30 day payment terms. Although the Company will experience a loss from the sale of this product the results will eliminate costly storage fees and the risk of the product becoming outdated. Proceeds of this sale will enable us to pay-down some debt and allow us to explore new production opportunities."

As explained by the company previously, DNA's former CEO overextended the company's finances by approving purchase of inventory without sufficient distribution to move it. This left the company with inventory they could not move and little liquid cash. It is now obvious that DNA management unloaded the excess inventory via Big Lots and now have additional cash that was much needed.