Replies to post #55466 on Drinks Americas Holdings, Ltd. (DKAM)

[Drugdoctor]

That's just Rheingold Revenue, remember, the MEXCOR agreement guarantees $50,000 per month in royalty payments, at essentially no cost to DKAM, so it should be $150,000 GROSS PROFIT - equivalent to sales of $750,000 in their spirits business, if they were turning a 20% margin.

So now take Rheingold Revenue of $300,000 dollars and give it a 20% margin. That's another $60,000 in gross profits. Therefore the gross profits would be $210,000 for the quarter. Still losing money at that rate, but much less loss.

Now, go on to the next quarter and let's assume Rheingold does 2 million dollars in revenue, and Mexcor still makes the payments of $150,000 IN REVENUES.

That would be $400,000 in Rheingold gross profits, and $150,000 in MEXCOR gross profits.

Now we are talking close to break even.

I am thinking that Rheingold Revenues are going to be much higher than $300,000 dollars for the current quarter, but I'm not about to go on record with a guess, simply because that is what it would be, but most of the rollout so far, and the re-order revenue has occurred in the current quarter, therefore I believe we could be looking at significantly higher numbers.