Replies to post #21047 on DNA Brands Inc (DNAX)

[iReapZzYy]

DNAX Dec 18, 2014 Shareholder Letter

http://www.dnaenergydrink.com/DNAenergy/index.phpoption=com_content&view=category&layout=blog&id=57&Itemid=116

It has been several months since the last shareholder update where we reported the condition of the Company and the problems we are facing. Although we can honestly say some progress rectifying those problems have been made there is still a long way to go. Listed below is a summary of some of our progress.

The filing of the Form 15 with the SEC and our decision to alternately file with the OTC has greatly reduced our accounting and legal expenses, as well as to free up time for management to address the business of the Company.

All other operating expenses have been cut to the bare minimum.

Salaries have been eliminated through the reduction of personnel.

Payment arrangements have been made with most vendors and creditors, who for the most part have been understanding and willing to work with the Company.

Convertible debt which we were forced to accept has also been greatly reduced and could be eliminated early in the first quarter of 2015.

Litigation continues against the parties responsible for causing such great harm to our Company.

Senior management has funded the remaining obligations up to this point but additional capital will be need for our survival and growth.

The Company has just received purchase orders to sell a large portion of its existing energy drink inventory, with shipping to take place late December with 30 day payment terms. Although the Company will experience a loss from the sale of this product the results will eliminate costly storage fees and the risk of the product becoming outdated. Proceeds of this sale will enable us to pay-down some debt and allow us to explore new production opportunities. Plans for 2015, include the reduction of energy drink flavors from 5 to 3 and the temporary halting of coffee production while we re-establish a strong distributor and broker network, or in the alternative attempt to license our award winning products to third parties.

On a more optimistic note, we would like to move forward with the development of a new and fully proprietary functional beverage which is not yet in the marketplace. We have received the support from a prominent member of the medical community to do a clinical study at little or no expense to the Company. If we are able to secure adequate funding, which is not a certainty, we can have this product ready for market in 6-8 months.

We welcome any and all constructive ideas and solutions.

Thank you for taking the time to review this update. We would like to wish you all a very happy and healthy holiday season and a Happy New Year

Sincerely,
Melvin Leiner
President

[varmit]

DNAX PAR VALUE OF STOCK IS .001
That's the lowest value the company can sell the stock

So we can't be having dilution here with par at .001
Here is a fact

When referring to shares of stock in a Delaware company, Delaware par value is the bottom or lowest limit set to the value of a share of stock in a corporation. A share may not be bought, sold or traded for less than the par value. Simply stated, if the par value of a share is $1.00, then it cannot be issued to an investor for less than a dollar, paid for in funds or services. Par value sets only your bottom limit, but the board of directors may set the price of stock at any amount above par. Let’s say your par value is $.01 but the board of directors sells stock to an investor for $5.00 per share. This is perfectly legal. The board may ask any price and the investor pays what the market will bear. But keep in mind that you are selling some percentage of your corporation with each share you issue or sell.