DNA Brands Inc (DNAX)

[Ed the Trader]

"DNAX will have a RS, sometime 2017 nit saying tomorrow but 2017. This ticker will not and cannot survive without a RS, even a buyout is not happening with this SS."

This is how DNA can avoid a reverse split: produce products and sell them at a profit so that once production is started (or certainly in a short time afterward), the business is sufficiently self-sustaining so that Adrian does not need additional financial assistance from shareholders.

That is how successful businesses operate. People here are so conditioned to having OTC Pink companies continually coming back to the shareholder well for another drink of their cash that people forget that this is not normal behavior for businesses.

I have seen others here assert that it will be many years before DNA can operate in the black. Quite simply, when the company already has an established product line... so no R&D is necessary... and no large operating expenses... because Adrian says he is operating on a shoestring... if a business cannot operate moving forward in the black relatively quickly after the products again enter the market, they have a fatally flawed business model. In that case, they need to re-examine their pricing and see what can be done to reduce costs.

The sale of the first... or definitely second... new batch of energy drinks produced ought to cover at least the business' variable costs. Shortly after, the business revenue should be covering more and more of the business' fixed costs.

With the choice of space that DNA now will occupy, and Adrian taking care to find bottlers that will drop ship to distributors, it is clear that Adrian appears to be taking care to keep fixed costs down.

That suggests that in spite of the need for Adrian to climb his beverage industry learning curve, his financial background will pay off in getting DNA into the black as early as possible.