Castle Brands Board (ROX)

[someconcerns]

Johnny and FUN,

Remember those old CERTS commercials with two twins arguing whether CERTS are a candy mint or a breath mint?

You are both right in different respects. If ROX made $5,000 in a year - but issued enough shares to double the shares outstanding - and that amounted to one-tenth of a cent positive GAAP income per share before the increased number of shares, the added shares would drive the GAAP income per share down to one-twentieth of a cent. Both would be shown as $0.00.

Johnny is right in that added shares ARE dilutive and that the numbers per share are even less impressive.

Funman is right in that both numbers would still be GAAP black.