Hey Capt, as with most companies during this stage, their financials are not going to be that great while they implement their growth strategy. Prior to Mr. James taking over two years ago, this company only had one product, the old Surgex, and were not going anywhere with a huge burn rate that was causing major dilution.
The fact of the matter is that all these new product lines haven't even been in the market for a year. It takes time to build a brand and it doesn't happen overnight. Right now the brands are continually growing and yes it will take additional funds to keep promoting them at this stage. That is the fact of life during this early stage, but Mr. James has kept dilution to a minimum and did use his financial prowess to seek out over $5 million in government grants from the state of New Jersey.
I am very excited about their entry into the medical MJ supplements and their unique approach that will give them a huge advantage in the market place. They will be the one and only source that will have the top industry experts supporting and endorsing their MJ supplements after being brought in to help create them. This Medical and Scientific Advisory Board is a brilliant approach for the huge growth in the medical MJ industry that is set to explode in the upcoming years as more and more states legalize it's use. This is a game changer that will come into play very soon.
As for the rest of their brands, their is also much to look forward here and here is what I see and expect for each brand:
Martha Stewart Essentials continues to grow and the reason Walgreen's took on the new MSE Gummies in addition to the sku's they already were stocking. I can assure you that if the brand wasn't producing sales, Walgreen's would not have added the new sku. Mr. James and his staff are working hard to expand distribution and that will continue well into the future. The Martha Stewart brands have a loyal following and that continues to bode well for the future of the MSE, but like I said before, it will take time to really build the brand and it was first introduced into the market less than a year ago. I spoke w/Mr. James about the brand a while ago and mentioned the concern regarding royalty agreement and the success of the brand as they continue to expand the brand. He said that Martha is very committed to making the brand a success, as it reflects directly on her. He said she will do what it takes to make that happen. I'm sure if the royalty agreement becomes a huge burden during this early stage, she would much rather work something out than let the brand fail. So, being that we are still in the early stages, there is still a lot more to happen to ensure the brand's future success.
The reformulated Surgex line and the private label deal for Muscle Maker Grills is having much more success than the old Surgex. The customer loyalty behind this brand is very big and as the business continues to grow, the sales base will too.
The Bikini Ready and Slim Trim brands are very new and will require much more promotional support to increase the awareness of the brands. Bikini Ready has grabbed some early attention and has a few top folks who are in personal fitness, praising the product already on various social media sites. The company is very excited about the future for Bikini Ready, like the Surgex brand, it is gaining a loyal following.
The Om Essentials and Itrinsix brands were great deals for the company and carry a very high margin that requires very little in way of investment expenses for the company. They are intended for a niche market that provides a good return. As the brands grow they will become a nice addition to contribute to the company's bottom line.
In summary, all these brands are very new, including Surgex after it was reformulated, and those of us who worked in this industry and understand what it takes to build a brand from the bottom up, know that this is a process that requires time, hard work, and a sizable amount of capital to make a brand successful. Mr. James and his leadership team are working hard to make this happen, while spending promotional monies wisely. Mr. James objective to turn this company around and make into a profitable business is off to a great start with all these brands and it is leaps and bounds above anything previous management did.
Inergetics is now being turned into a business of many good high quality brands and their entry into the medical MJ supplement business with their strategy, could very well be the golden goose that will provide immediate results to bolster their balance sheet to get them to a cash flow positive state. Patience could really pay off here and why I invested so heavily, because I believe in the management here and their strategy. Cheers!
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