Bots Inc (BTZI)

[lesgetrich]

Boy, you sure know how to hear what you want to hear. The transcript has been published...

mCig (MCIG) Q4 2016 Results - Earnings Call Transcript

Regarding your various impressions...

Mike, suprisingly, addressed the VitaStik debacle.

He confirmed that there was no debacle except in your fantasy...

For example, the company is aware that a former manager of VitaCig while acting as the CEO of that publicly traded entity filed an assignment with the USPTO granting the rights to certain trademarks in his own personal company. The company is aware that an alleged document was used as part of that filing. The company does not believe this document to be authentic.

The company is expecting an opinion of counsel in this particular matter and want to address the issue in the very near future. It is interesting to note that this mark has not yet being granted and is contested.

Furthermore, the company believes that even if the mark is granted, it would be unenforceable against the company as the company had prior knowledge in use of the mark. And finally the mark has been issued in the European theatre to our partner as required of our expansion into that theatre.

...He totally destroyed your ad nauseum claims that VitaCig would never receive any royalties from EU or Korea because VitaStik, Inc owned the trademark. How many times did we have to look at that garbage post. The blame for what happened with the VitaStik trademark rests primarily on Al Santos. He was CEO of VitaCig at the time, not Paul. He should have presented his trademark plan to the Board of Directors and had it approved, he did not. Paul was powerless to do anything but fire him, which he did. In any event, it has no current impact on VitaCig revenues or royalties.

also...

There was no discussion or mention of why MCIG/VTCQ would fabricate exponential growth all of CY2015 – KNOWING THERE WAS A TRADEMARK ISSUE.

VitaCig never fabricated exponential growth. Those predictions came from several posters. The company can't control what people post on this or any other social media. There was never any trademark issue affecting VitaCig revenues or royalties.

next...

In hindsight, the divvie shouldn't have happened to begin with.

Perhaps, but we're all better off because it did. Those who received free shares and sold them made a nice profit. Those who kept them now own shares in a 41 year old established business with significantly more assets and revenue than they had with the VitaCig product line. mCig is significantly better off because they now own 10% of this company. It's a win-win-win for everyone involved.

next...

There was not enough information on VTCQs acquisition of Malecon Pharmacy or the MOB contracts; which was a disappointment. IMO, the mention of the MOB contracts constitutes a forward looking statement.

mCig is bound by their contract to confidentiality about any due diligence information they received from Malecon. Malecon probably wants to make an announcement themselves which will have maximum impact on the pps and its new shareholders. The MOB contracts were addressed in the transcript. They are being handled off the books as merely relevant information for shareholders...

the $3.95 million in MOU contracts is considered in off-book asset. Before disclosure we've let everybody know that these contracts exist, but we treat them as an off balance sheet transaction, so that it doesn’t reflect either positively or negatively going forward.

It’s the viability of how we operate and deliver on those contracts that will be measured towards the success going forward, not some theoretical application from a financial perspective we have to book keep.

next...

I recall that the marketing doesn't even begin until construction is complete.

Wrong, look again, the marketing and consulting begin when the project begins Planning starts immediately and other deliverables begin with first shipment of materials.

next...

Interesting comment re: business model for construction. Mike said they are “leaders” in the sector because they are the only ones who will work out a contract and build in x amount of profit in the cost of the project – and the customers will pay the exact wholesale cost of building materials.

here's Mike's exact words...

But the company’s approach is to design and build contracts, to understand what we did with Greenleaf, we design and build contracts in a prepaid cost-plus basis. This is virtually unheard of in the industry where you're identifying what the cost of it is, you're getting prepaid for it and you're building in a percentage of profit.

While you can look at construction and construction is one of those deals where there is no hedging your bet of making a greater profit for reduction of cost if you can figure out how to do things cheaper. Construction is typically a very direct finite cost and whenever you can get into a contract where you've got no risk in loss in construction and you've got a percentage of profitability built into it and you're being prepaid to do that where you’re reconciling at the end of every month, which actual cost was to what you're prepaid, it’s a very good deal.

All our agreements the customers pay in advance. We have no cost of money for these projects build in. As such our bottom line is our bottom line. There are no hidden fees and we make full disclosure with our customers. There is nothing hidden from them. They see exactly what the cost is and what our profits are.

We show them actual cost, adding the agreed upon profit and management fees, reconcile the advancements made monthly. Now in the particular case of Greenleaf, we decided they could provide us some more marketing and promotional expertise that we think is critical to the spreading of the mCig name and awareness across the globe, that we believe that there were some promotional expertise that they could help us in our long term, we've elected to convert some of that profit into a project on our quid pro quo exchange of services.

These are services had they paid us, the profit on this project, we would have expended to develop this marketing and promotion anyways because we need to do that.

Again, he totally destroyed your contention that you again repeated ad nauseum that there was zero profit in the GreenLeaf project.

next, I've discussed Rollies in previous posts but...

The way Mike was gushing about the rolling machine, you'd think that MCIG was the first to invent a rolling machine. Hate to break the news, but rolling machines have been around forever. Philip Morris, anyone?

Tobacco rolling machines aren't suited for rolling MJ cigarettes or Rollies tubes. Look into it.

Mike didn't mention the decelerating revenues.

Wrong again. Again you hear what you want to hear...

We've seen tremendous growth in this market and we continue to dig our roots deeper into the market, but all this has brought forth a couple of issues that we needed that we had to address. We had to deal with the bank and merchant services decisions to consider how we process payments.

This created a huge downturn in the third quarter of this fiscal year and you saw the difference between the second and the third quarter earnings and there was a tremendous drop off. Part of this was because of the inability to process with merchant services.

We have corrected that. We have moved forward with that and we have created a solution whereby we can continue and did continue to offer our products online with the capability of processing with banks and with the merchant's business accounts.