Baristas Coffee Company, Inc. (BCCI)

[BobSinCA]

NASDAQ uplisting has financial requirements.

Unfortunately, BCCI has a long way to go to meet those requirements.

The most difficult one for BCCI will be shareholder equity. To meet that requirement, company needs to generate significant profits (Q3 14 financials show BCCI losing $0.60 from operations for every $1.00 in revenue, plus $0.30 in interest expense).

Franchise fees will help, as will royalties. Q1 financials should show the level of franchise fees received in the first quarter. But, it sounds as though the company intends to reinvest those funds in K-cup development and distribution, as well as other branded products to be resold by BMOC -- so the necessary profits to build shareholder equity are likely some years away.

An alternative would be to sell equity -- but that would mean significant dilution, as shares sold by the company over the last few years have been at a significant discount to traded pps. However, if the shares rise due to a significant improvement in operating results, rather than temporary 'March Madness,' perhaps equity could be raised at a reasonable cost.