Bravo Announces Record Revenues - But Even Bigger Losses
Bravo Foods announced 3Q05 revenue of $3.25 million, nearly four times more than last year’s revenue of $825,000.
They also reported a loss of nearly $5 million, versus last year’s loss of $1.2 million. I can understand that, to some degree, they will be experiencing added production and/or marketing costs.
What bothers me is that they would have to pay a “finder’s fee” relating to their agreement with Coca Cola. We’re not talking pennies here - this “finder’s fee” is three million dollars. The company had $3.25 million in sales this quarter, so this is a lot for them.
The funny thing, though, is that they don’t mention who the finder’s fee is going to in any of their releases, and they just gloss over it in their 10Q (here). It seems like a lot of money to not even mention who the finder was - perhaps I am ignorant, but I’ve never heard of a “finder” that arranges distribution deals and then charges a “finder’s fee”.
Does anyone agree?
