Replies to post #25795 on Baristas Coffee Company, Inc. (BCCI)

[Yaakov]

Exactly. This will eventually crash...enjoy the dips and spikes while you can ladies and gentlemen. Even BH knows this is unsustainable.

[payperview]

Your assessment is correct.

[payperview]

In order to meet auditing requirements not only would the company have to go back and place all the kiosks expenses under COGS, but they would have to separate these by store. Also, the sales from the website would have to be in a separate accounting line as well as the expenses pertaining to it.

All of these tasks to meet auditing requirements would cost more than $100,000 due to the fact that the company would have to go back several years and re-enter all of the information in a proper manner.

I would say that they do not have the resources to do that even if the principals decided that they wanted to do so. Thus, without proper accounting records, the required auditing for up-listing cannot be met.