So, I'll answer my own question.
The recent annual financial statements do not compare operating results to the prior year or quarter (highly unusual, in my experience).
- But, the balance sheet shows that cash remains nominal, and accounts payable and accrued liabilities were 5x higher at the end of 2011 compared to the end of 2010 due to 'unrecorded debt' (did not flow through the P&L).
- Shares outstanding went from 164M to 210M.
- Looking at the 2010 report, revenue went up from $500K to $1M for the year (100% growth), but in Q4 only up from $163K to $284K (70%), indicating de-acceleration of growth over the year, despite a December PR indicating 'excitement' about holiday business as the country exited recession with strong job growth.
The published financial statements did not include the opinion of an independent auditor, simply an attorney's letter which said the company had complied with a certain set of public market regulations. Would love to see an auditor opine on the 'unrecorded debt.'
I don't think this is the kind of 'growth' which is valued by financial markets.
Not to say that the concept of 'hooters meets starbucks' is not interesting, but so far there is no evidence that there is a viable business model to attract franchisee investment, or sufficient debt/equity investment in BCCI to finance the opening of 50 company-owned stores as forecasted in the December 'independent' research report.
I do not believe this is a scam as suggested by some posters. There is a real business here, with management attempting growth through marketing. Certainly the concept has attracted some strong individuals to the management team. It just doesn't seem like a successful business, at least so far.