Baristas Coffee Company, Inc. (BCCI)

[SirWinston]

I called the company today and asked some questions of Berry Henthorn. He told me that the company has very wide expenses depending on the store, but one kiosk includes (rent, garbage, electric, and water) for just $550 per month. Another store he pays over $2200 per month for rent alone, includes nothing. Payroll varies wildly per state, but some of the girls make over $100k, and one girl made $187,000 last year.

There are now 10 stores open. The average expenses are 21% of revenues. These figures are in line with what I expected and what I stated on this board. He also said expenses have gone up in order to build out the national enterprise, with shipping and commuting, but that it will begin to drop significantly with new stores that will be opening soon. Both Montana stores are profitable already.

The $1 million dollar write down was for the auditors who are doing audited financials. He explained that in the beginning the books weren't complete and because of the roll-in from the previous company that had some lingering disputes. The auditors wanted the bucket there to draw from, opposed to doing it the opposite way. He expects fully that as those issues are resolved that the million will be dropped to a much lower figure below half.

The labor board dispute has been resolved, the company is on a payment plan.

Overall the company sounds strong and the CEO even stronger. I trusted he was telling me truths, which are in direct opposition to what this board has been saying. We shall see.