Baristas Coffee Company, Inc. (BCCI)

[BobSinCA]

Start-up losses are frequently attributable to growth.

But, three to five years for a coffee kiosk is a long time, particularly with unit revenues not growing appreciably and no new kiosks opened in almost eighteen months (one was announced for opening a year ago but never did -- although BCCI appears to have bought the equipment for it, if I am reading the financials correctly).

BCCI is also not funding BMOC growth; Mr. Henthorn has said that the ten new franchises planned will generate $75,000 in profits. Mr. Lehr is not being paid by BCCI, and BCCI principals receive no salary.

Start-up losses are also attributed to product development. So there, we would have ice cream, reality shows, and mobile kiosks. But the ice cream was paid for by 5M shares to Calip Diaries (in fairness, $375K of this investment is included in the 2012/2013 $2M+ losses), and if I recall correctly Mr. Henthorn said that the advertorial known on iHub as a 'reality show' did not cost out of pocket cash (read: more dilution, perhaps also in financials as a loss, but hard to find; certainly, not meaningful size).

Mobile kiosks were not announced until the fourth quarter, so the 'benefits' (or costs) have yet to appear.

Net, I can't agree that most of BCCI's massive losses are in the 'it is a start-up' bucket.