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Barfresh Food Group Inc Message Board

  • grz8 grz8 Jul 14, 2013 11:49 PM Flag

    This is worth 40 cents?

    ...or $21 million?

    I think this company is in the right market segment, but a quick look at their financials and history reveals the following:
    * 3 + years as an established company with $9,000 in revenue and $2.5 million in losses. Why is it talking so long for R&D, testing and sales? They are developing smoothies, not a new rocket! If customers don't translate interest into orders, there must be a reason.

    * From December '12 to March '13 they sold 1.6 million shares (that included warrants) at $0.25. Currently they are offering an additional 8 million shares (also including warrants) at $0.25. Dilution, anyone?

    * No LTD (long term debt), which means no bank will lend to them.

    * "During December 2012 we received a cash advance from a relative of an officer of the Company in the amount of $30,272." (from the latest 10-K). Desperation? perhaps. No matter what, you don't see that very often.

    * From the same 10-K: Consulting fees: 2013: $569,514 2012:$82,429
    Personnel costs: 2013: $434,747 2012: $0
    They have 5 employees and 3 consultants, someone is getting paid handsomely for very little performance.

    I reiterate that the concept is good, my intention is not to bash the company, just to point out that it's not worth 40 cents.

    Opinions welcome!

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    • This isn't worth the price of wall paper. Pure hot air pump and dump

      Sentiment: Strong Sell

    • A coupla other slightly contrarian points, GRZ8, although I do appreciate your reticence to slam this company, as others have done:
      1) BRFH has only been qualified for "trading" since mid-2012, so in truth, they've only been operating (with investment capital) in the USA for about 18 months, more or less.
      2) I'm going to surmise that the process of adapting this company's Australian recipes to the "sweeter-inclined" North American palate probably took an extensive amount of market testing.
      3) 18 months ain't all that bad for a new North American startup, who's approaching their "product launch" with duwe deliberation.
      Contrarian views are invited, even though I'm in with a truckload of BRFH @ 40 cents.
      Wait another half-year, people. Too many impatient folks want to make a quick score, methinks.

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