Drinks Americas Holdings, Ltd. (DKAM)

[FUNMAN]

What was, still is.

The newly minted shares are primarily either authorized employee compensation or shares bartered for products and services.

There is no cash flow to pay for all of DKAM's expenses. Just look at the financials. Every dollar of outflow above and beyond cash generated from sales has to be covered by share sales.

When new shares flood into the market, they were probably issued to the barteree at a discount to accept the risk; for instance at .002. that's why they don't care if the price drops from .0038 to .0031. They just want to get their cash out as quickly as possible.

The money has to come from someplace and it's not coming from product sales or royalties.

The arguement that dilution stopped after the last 10Q, and another R/S won't happen until 2015 doesn't hold water. That would mean no more dilution for the remained of the year, and less dilution per year for the subsequent 3 years than we saw documented in the first 3 months of this one.

DKAM needs operational cash right now. So unless they get cash infussions in the from of loans or selling any portion of the company, the only other source is dilution.

So until we can document a change in their standard operating procedure, what was, still is.

I just hope dilution turns out to be less than some of us anticipate, and that Rheingold sales spiked.