Baristas Coffee Company, Inc. (BCCI)

[BobSinCA]

Fully reporting is necessary, but not sufficient for NASDAQ listing.

BCCI must also come up with millions more in shareholder equity. This means either significant dilution (particularly as private shares of stock have been sold at less than 50% of otc pps over the last year), or profits.

But the company is currently experiencing operating losses of $0.60/$1 of revenue (Q3 14; Q2 14 was $0.53), plus interest expense of $0.30 (Q3 14) per $1 of revenue.

Certainly, the mall stores will help. But even if they generate $5M in annual revenues, say (current company is barely over $1M), and all royalties flow to the BCCI bottom line (that is, none to BMOC), that is only $300K per year, not enough to cover current losses much less go profitable to start building shareholder equity.

Net, NASDAQ is either long ways away or will require substantial dilution. Not sure it is worth the dilution to be listed there, given that OTCQB now seems to allow institutional ownership.

A much better idea would be to do an R/S, which will be required anyway for NASDAQ listing but would meanwhile raise pps to the levels required by many institutions.