Replies to post #27930 on Baristas Coffee Company, Inc. (BCCI)

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Correct in your assessment of the financials, but I would not put too much emphasis in "Under the Radar". They are just reporting news with a little twist. They are not recommending anything. The show is meant to attract aggressive market players by pointing out companies to which they have been made aware. I would not tell anybody to invest based on what this outfit points the finger at.

BCCI claiming that "this equity restatement came out of the audit process carries little weight with me, and it should with everybody. Let them properly account for expense by location and then I may start giving them the benefit of the doubt. The Cost of Goods sold line should include not only the supplies, but rent, utilities, payroll, insurance, et cetera per location. If someday the company makes it to NASDAQ without first restating the financials according to GAAP, I will lose my trust on NASDAQ; not the other way around. In recent years, we already have had hundreds of cases of fraud associated with public companies and Wall Street, from Enron and WorldCom, to the whole fiasco the mortgages, interest rates fake numbers, illicit securities transaction and the likes of Madoff, et cetera; all we need now is to learn that NASDAQ is lax in reporting requirements for admission.

[asus]

So if I understand your post correctly, they are saying that the value of their shares was understated as an asset at .001 when the stock was perhaps selling at .03?

So if they traded the shares with another company for something else their books only reflected the asset was .001 the entire time, when in reality those shares are worth .03 (or whatever the share price was at the time).

I would think that when shares are diluted that the shares would receive a debit line and an asset line simultaneously AT THAT TIME. And when the shares are traded then they can be taken off of the assets as an expenditure.

So if they are writing down this $7 million credit, where is the debit to offset it?