Baristas Coffee Company, Inc. (BCCI)

[BobSinCA]

No way, breakeven 6 months to a year.

Consider 2014. As ppv said, 1.3M in revenues and 3.8M in losses. But in fairness, about 2.4M of that was in management compensation due to stock, so call it 1.3M in losses, 100%.

About the same percent as Q1, when taking away the one time 'beneficial conversion fee' and stock impairment charges.

Going forward, will be about $475K/yr in stock compensation (assuming share price as per Q1, when it was $119K; note that these shares are committed through 2020 or so).

So, we have a 1.3M, profit problem per year. With me so far?

I think we can agree that the kiosk business loss rate is pretty stable at that amount, so that leaves franchises. After 15 months of trying and no takers, I think we can assume that kiosk franchises won't happen.

That leaves BMOC and the mall model.

The first ten franchises will net $75K profit in franchise fees per Mr. Henthorn, as someone has to be hired. With $75K of franchise fees taken in Q4 14, that leaves 7 more franchises to be opened in the first ten, which will net $0 in profit, per the company. Note that there are no franchise fees associated with the NY JV.

That leaves royalties (6%) and profits on supplies (no data available). It will take $30M/year in mall store revenues (no data yet provided), to develop 1.8M of royalties, to clear the loss (assuming no additional costs).

Not calculated are supplies profits (which I expect to be low, else BMOC will buy locally), or the profitability of the JV in NY (which I expect to be less than on the franchises, as I suspect BMOC drove this change. I could be wrong).

Net of the above -- no way profitable in a year.

Perhaps the upcoming Q2 15 profit report will provide additional indicators of mall store volume.