Bots Inc (BTZI)

[BubbaInSC]

Concessions - History Lesson

So, yeah - the fact that MCIG did not specify the amounts of the deposits is concerning. IMO, it suggest that concessions were made and that the actual deposits are $0 or near $0. This is problematic because the construction clients probably have contingencies written in the contracts that allow them to cancel the contract if, for example, they don't succeed in pre-leasing cultivation space.

Is there a rule that says they have to PR it? No, but why wouldn't a company do so - since it would give shareholders an idea of what MCIG will be declaring as part of revenues (since MCIG would be able to declare deposits taken as revenues).

More likely than not, MCIG didn't specify what the deposits are because they made concessions. Just like CAFS did, back in the day. Someone denied that too. RFLMAO.

BTW, it was me who first indicated that deposits are customary at about 10% of the value of a construction contract. After my complaints, MCIG PR'd that they actually closed on a deal.....and accepting an undeclared deposit. I was right about that too :)



3/29/15
~Bubba
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=112207820

And, guess what? Even the above is being generous since it's unlikely that CAFS will have 20 franchises operated for a full year for calendar year 2015 - and because my guess is that CAFS is NOT collecting 20% of gross revenues from existing licensees. When one is a startup company such as CAFS; their going to make some serious concessions just to get the first 10 franchisees signed.

3/29/16
~Les
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=112208979

The whole rational for franchising is to enable someone to take their $100k revenue dispensary and potentially turn it into a $2 million revenue dispensary by implementing marketing programs and best practices. If those $250k revenue dispensaries didn't exist, there would be no market for Cafe Serendipity.

3/29/15
~Bubba
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=112210051

LMAO. Sure, because my numbers are based on real actual average revenues - NOT FAKE ONES :)

7/19/15
~Bubba
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=115523873
7/19/15

yeah, i think that's problematic too; especially at the beginning. One would think they would be giving some concessions just to get people to buy in.

In addition, NOTHING IN CAFS presentation states how they would exactly grow the average business from $240,677.97 to $2,000,000.

7/19/15
~worksfornickels
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=115526207

Exactly. Didn't we question this early on? Lol

7/19/15

No, it never was. according to their Investor Presentation, the fees are...

Investor Presentation

1.) Franchise Fee = 8% of revenue
Branding
Accounting Software
Product Selection etc.
2.) Consulting Agreements Fee = 7% of revenue
Financial Guidance
Personnel Training
Inventory Management etc.
3.) Marketing and Advertising Fee = 5% of revenue
Print Media
Online Media
Social Media

A dispensary can sign up for any or all of these.

10/5/15
~Bubba
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=117489075

You and I went thru a similar discussion about CAFS Revenue Projections - where, ultimately - I said CAFS was nowhere close to bringing in any kind of significant revenue. Guess what? Their last quarter CAFS had $0 in gross revenues. ZERO.

Here's what YOU said about cafs
5/12/15
~Les
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=113572979

I'm not worried at all. I actually think they'll far exceed expectations. For example...

1.) If they signed those distribution agreements they were negotiating several months ago and have 6,000 new retail outlets, each store would only have to sell $97/month of MCIG products. 3 or 4 units of CHILL CBD oil per month per store alone would get them over $7 million - that doesn't even include EM-J, Ultrasonic, traditional MCIG vapes (2.5, 3.0 & 4.0) and potentially home extractors and edibles.

2.) 70 commercial extractors at an average installed tag of $100,000 (cost of extractor + installation by construction division) would gross $7 million. Keep in mind that they said they wouldn't limit themselves to purely MJ extractors.

3.) The Construction Division could get there with just 7 contracts to build new grow ops at $1 million+ each. That's under 2 grow ops per each recreational state, not to mention all of the MMJ states or remodelling contracts for Cafe Serendipity stores (CAFS already has 2+ grow ops signed up).

4.) Each Cafe Serendipity store should be worth on average about $300,000 in MCIG sales. Roughly 23 CAFS stores, fully operational, would bring in $7 million. MCIG's agreement with CAFS calls for them having 25 licensees within 18 months. They currently have 5 plus 2 "groups" of grow operators. MCIG will probably act as middleman/wholesaler between the grow ops and the stores (CAFS has indicated that they will not be selling MJ themselves and MCIG is set up to be their primary supplier).

5.) Potential technology licenses on Ultrasonic or extraction technology could be worth more than $7 million.

6.) Any combination of the above could easily exceed $10 million in revenue (e.g. $2 million from each)

Looks like concessions were made by CAFS didn't it.

MCIG is in a very similar situation. Concessions were likely made re: deposits - and contingencies were probably built into the construction contracts.

So, people should not be surprised at all if something bad happens to these construction contracts and the revenues end up being $0 if clients back out on either phases or projects.

The only way MCIG generates revenues is when they actually complete a phase and collect $

The ability to execute and complete in a timely manner is crucial. If MCIG is late.....that will f*** shareholders big time