Hey everyone....BRAV has been on my radar for a while so I decided to have a look and do some in depth DD on this company. I found some very interesting things in the most recent filings all the way back to the Annuals that I would like to point out and see what you all think...
First of all, I noticed that within the last month (June 30-July 31) the A/s was increased by 8 million. Now what I am happy about is that this is such a marginally increase that it doesn't matter. Most penny stocks increase by 10s if not 100s of millions of shares a quarter. I also want to commend the CEO on literally erasing almost all the liabilities of this company. Like the stock structures typical penny stocks have enormous liability concerns.
However!!! With these commendations comes quite a few concerns especially regarding the February Annual, March Q and the most recent Q out a few days ago. With regard to the February Annual, my immediate concern turns to page 19 and 20 where we have a net income line stating ~-193K. However, on page 20 we have a net income line stating positive ~165K. THAT is a major difference and because of that, it makes the company look like it actually has cash on hand. Now I went ahead and did some math and came to the conclusion that the company should have lost a significant amount of money of there "cash at beginning of period". This is very concerning as when these get filed, they are certified to be correct or knowingly correct. Now given the benefit of the doubt, it could be an honest mistake, but to have that big of a difference on the very bottom of the page and the very top of the page.....not likely. I think this was done purposefully in order to try and show that the company actually had more cash on hand and did not have to "finance activity" when in reality the exact opposite I believe occurred.
Secondly, in the annual we have a minor error in the authorized versus what is given down below in the summary of the classes of stock which is where it is showing 742 million versus 750 million above....minor...yes. Typo....most likely and wouldn't be concerned about.
Now to sum up the other quarters mentioned above, I find some interesting expenses mentioned in the Cash Flow, Balance Sheet and income statement. Now some of the charges that concern me are the auto charges....from what it seems like either the company or someone from the company is charging a car they bought or "rented" which is how they classify it and billing it to the company along with the gas used as well as auto insurance. While these are all marginal expenses...THEY ADD UP. Not only that but the insurance rate for the "auto" seems to vary indicating an unusual and suspicious expense.
Furthermore, we have some Internet and computer charges. While every company nowadays is required to have this it should be nothing out of the ordinary; however, when I look down below I notice a second charge for "cables and internet". Is there some sort of double charge? Could someone from the company be charging personal internet use for their home or other residence as a business expense?
Typical penny stocks, classify "consulting fees" as "promoters or investor awareness". Now there may be cases where this is not true and I do acknowledge that. Usually though, when a company reports on a statement for a consulting fee such as legal, the consulting fee falls under the legal expense header. However, in the annual we have a 170K consulting fee with no specific "home". Along with the annual, we have consulting fees for 35K and 17K respectfully for March Q and July Q. Neither of these of have "homes". So what could these be?
Meals and entertainment....do these employees get free lunch and concerts while at work? If so....send me an application because that would classify as an awesome perk. But in all seriousness...why is meal and entertainment such a big expense compared to some of the smaller things? Are we paying for the CEO's food everyday? I work, and I pay for my food everyday.
Overall to sum up....I see some good things the CEO has done, but some very very questionable things as well. The company continues with regards to the Annual that needs to be fixed ASAP, to generate a negative cash flow and if this continues, will have to finance the activity through authorizing additional shares and diluting the market causing a likely decrease in the pps. The other item that concerns me is the slow down in revenue from quarter to quarter (Feb-July). Now I see in the notes that we had a store close and we had a website altered or changed. Now I wonder if the store closing was in regards to a disagreement in rent rate or the inability to continue payment based upon the facts above with decreasing cash on hand and consistent negative cash flow? Who knows? I think this company has many things it needs to disclose before it become a viable investment as there are many things left open and that are very suspicious. I think we need transparency and we need to have each specific line item explained instead of just Other or consulting fees, because those are what scare me and lead me to have thoughts of the "typical penny stock". Now who knows, I may be completely wrong, but this is my background and this is part of what I do on a daily basis.
This is all my opinion and just based on the recent scanner hits I have been receiving....thought I would dive into it and do some in depth research. Take what it is for what it is or don't take it at all. I wish the best to everyone and hope everyone makes tons of money. GLTA with BRAV
