American Premium Water Corp. (HIPH)

[fanglemeister]

So what about future dilution for Expert Group?

Not a problem, as long as used for expansion. When this company sells shares, the money is quickly converted into profit-generating shareholder equity, rather than expensed out on the CEO's lifestyle.

Look at our recent financial results for the recent duilution, and decide for yourself.

Based on interim financials, each $250k raised to open a new storefront should add $750k +/- to retained earnings ($187k x 4 = $748k). So each storefront earns $500k the first year open, $750k+ each year thereafter (Gods of Real Estate willing, but that's a different topic).

Next note that when we reach $.10/share (by year-end? sooner?), the next dilution-for-expansion will require only 2.5 million shares at $.10 each, instead of 5 million at $.05 each.

And the next opening after that, maybe 1 million sold at $.25 each?

You get the picture... as share price climbs, required dilution % for each new store diminishes.

End of 2010, and if all went according to plan, we'll have close to 400 originators in 6+ storefronts. At minimum, $4 million to $5 million in retained earnings per year (more or less, based only on real earnings of 1 store in Q3/09). Hard to say what the OS will be by then... but if 50 million shares, that would be upwards of $.06/share, maybe $.08/share in earnings.

Looked at another way, $187k x 4Q x 6 stores = $4,488,000.

Plus add shareholder equity for ownership of 6 stores.