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Saturday, August 20, 2011 6:16:57 PM
JACKSON ANSWERS THE QUESTIONS
But first, our sincere thanks to Jackson Corley, CEO Star Nutrition, for the prompt and lengthy response provided for our questions. I guess that I should apologize to him for the running question #10, which doubled the count, but in that he so graciously covered all the points, risk and time well spent from my perspective. This should give us some very good transparency to follow, digest, discuss and look forward too. As someone suggested, INCREDIBLE INCREDIWEAR!
#1. When or will you add staffing for a dedicated investor relations contact?
IR is months or more away, we are not ready for an monthly $3-5k minimum IR company. We are a pink company, we want to conserve money. We are hiring more staff to field questions, but we would rather have the new staff answering customer service questions and taking orders, than answering IR questions.
#2. How are the new BOD members being compensated, and if by shares, will they be subject to the same 1% sales per quarter restriction as the founders' shares?
BOD is a not a paid position, no shares, nothing! All members came on board not expecting to be compensated. I will ask our BODs to approve a share distribution of $ 1000 to 2000 in preferred shares annually for their help. These shares will be restricted and can not be converted to free trading shares for 24 months( not much money). Preferred shares are valued at $2 per share and converted at 2000 to 1 to trading shares. The BODs would be losing money at the current share price if they wanted to convert to free trading shares at 0.008.
#3. Can you provide a rough estimate range of 2011 total sales and if you foresee hitting $1MM this year? Any projection goals for the business.
Our Goal for 2011 was $500k, we only collected 18K in January of 2011 and our big month was April at 98K. As of yesterday, we have collected roughly $420k. With 4 months to go, I doubt we will surpass 1M. I am projecting 600K to 620K, our goal is to double sales the first 3 years, then quadruple the business the 4th year as international sales begin to pick up.
#4. Please advise on when STAU ticker is to be awarded the "Current Information" status on OTC with stop sign removal.
Financials were a mess. My old business partner, who was VP and CFO and was let go in March 2011, truly set us back months on the financials. Our old accountant had to reconstruct two years of accounting with missing documents, few receipts and little help; not an easy task. Just when the accountant thought he had the final copy ready, a ghost account would appear and he would tell me I could post the numbers. We couldn't post Jan through May until the last 2 years' numbers were perfect. I received the final version last Thursday at 4PM, and the true share count as of Dec 2010, which is posted. June financials are almost complete, the share structure should come out when we post Jan - June 2011, or possibly before. We don't need an attorney letter to get the the stop sign removed , we just need the share structure posted.
#5. Is Star Nutrition considering doing a share buy back in the near future and if so, can you advise as to when?
We have not discussed this issue in months. We are too busy to consider this issue at this time, I will address this topic in the first quarter of 2012.
#6. Are there currently any plans to enhance the Star Nutrition and Incrediwear websites?
Yes. We have already paid for our new website, construction is underway.
#7. Is Star Nutrition for sale or looking to merger?
No.
#8. When will the float be updated to August 2011 as are the OS and AS?
Answered in question #4. We have had a few calls about Star selling shares to run the business and another really bad question regarding STAU making money off every share that is purchased from brokers. Shareholders need to understand that you are purchasing shares from brokers and not from our company. It seems like a no brainer, but some traders think that we owe them because they are financing our company by purchasing shares, which is just not the case. If we sell shares as an offering then we are being aided. We have not sold shares to the brokerage companies. The free trading shares are part of the debt for shares swap.
1. We did not do an IPO. We traded free trading shares (the current float as of 12/30/10) to eliminate some of our debt. We received no funding from the sale of these shares ......zero. Our company is not funded by selling free trading shares. I am hoping the float is higher, even doubled, so there is more trading shares available for investors to purchase. I retired one 15k loan with free trading shares at 0.0005 per share in April and my old partner may have done that same in February, which we will find out this month. Once the OS and AS are posted the stop sign will be removed.
#9. Please provide a brief synopsis of the last few months in terms of Expo activity/sales estimates/ and/or other adds as may be shared.
Military expo, World games, Outdoor retailer, Lacrosse tournament, World IDEA personal trainers expo, Crusher bike event and more, produced retail buying and set us up for wholesale purchases the next few months. We sell the fruits of these efforts 6 to 8 weeks following events. The Military expo was first and we just received an order for 600 pairs of hikers from the National Guard 8 weeks after the event. We picked up several new reps and got rid of a couple reps who were not working. Summer is generally a slow retail time and yet we maintained at least 50K per month in sales, much of this was due to expo sales.
#10. Are there any plans to resume issuing the company newsletter for "Shareholder Updates" or a PR covering recent events next week? There is interest in number of employees and what people are doing, events, significant annual report comparisons, use of free trade zone, global expansion, etc., pertinent information on the company not normally covered in a specific PR which may be shared. The newsletter was much appreciated for its potential going forward.
A. Our newsletter comes out every 2 months, unfortunately our writer's mother past at the end of July so we will release it in Sept out of respect.
B. Again addressing PRs, we have PRs but we will release them in a timely fashion not one per week, as your traders want. We are trying to run a business, the stock is better served with meaty PR's, not fluff. We don't need to announce we have some of the best cyclists or rock climbers in the world testing product. We want contracts or great BOD announcements. The answer to the PR question is no on next week.
C. We are not interested in hyping the stock with out $$$$ numbers. Give us time to get the orders.
D. We have a new medical distributor, VRP inc, and complimentary products , but they told me this week I cannot PR their company. That is why I put their info on our information sheet so it is public knowledge. They have ordered $16k in products in the last 20 days and it's growing.
E. We have 3 full time independent contractors including Matthew Itamura. They work on commission only, which saves $$$. I continue to work for free. We just hired 2 new part time secretaries. We now have our own fulfillment company at our new warehouse serviced by Steven Cooper.
F. We have a national sales manager, International sales manager, fulfillment manager (billing receiving etc.) , 2 secretaries and myself......we have independent reps in sporting goods, health stores, medical, home health care and more.
G. Up coming events.....expo east Sept., CHFA Canada Oct., Radio east coast talk show Oct. Dr Ria radio Nov., 2 expos in Dec.
H. Comparison reports ......this is easily viewed.
I. Free trade zone needs more volume of product. We carry around $350k in inventory, once we hit the $1M inventory mark we will take a look.
J. Expansion.......Yes.......we have not signed the contracts yet. We have at least 8 countries we are working with at this moment. Global expansion is a huge part of our business plan, which is one reason Jose Mejia was asked to come on as a BOD. He has a huge international portfolio of business associates and has already put us in contact with some of the largest distributors in the world! He is on the BOD of one of the most respected research Universities in the US, we will try and pursue this asset. Colonel Olsen will help push the military, though our largest obstacle is the "Berry amendment" , which states for purchases over $3000.00, military must buy American made and American sourced products.
But first, our sincere thanks to Jackson Corley, CEO Star Nutrition, for the prompt and lengthy response provided for our questions. I guess that I should apologize to him for the running question #10, which doubled the count, but in that he so graciously covered all the points, risk and time well spent from my perspective. This should give us some very good transparency to follow, digest, discuss and look forward too. As someone suggested, INCREDIBLE INCREDIWEAR!
#1. When or will you add staffing for a dedicated investor relations contact?
IR is months or more away, we are not ready for an monthly $3-5k minimum IR company. We are a pink company, we want to conserve money. We are hiring more staff to field questions, but we would rather have the new staff answering customer service questions and taking orders, than answering IR questions.
#2. How are the new BOD members being compensated, and if by shares, will they be subject to the same 1% sales per quarter restriction as the founders' shares?
BOD is a not a paid position, no shares, nothing! All members came on board not expecting to be compensated. I will ask our BODs to approve a share distribution of $ 1000 to 2000 in preferred shares annually for their help. These shares will be restricted and can not be converted to free trading shares for 24 months( not much money). Preferred shares are valued at $2 per share and converted at 2000 to 1 to trading shares. The BODs would be losing money at the current share price if they wanted to convert to free trading shares at 0.008.
#3. Can you provide a rough estimate range of 2011 total sales and if you foresee hitting $1MM this year? Any projection goals for the business.
Our Goal for 2011 was $500k, we only collected 18K in January of 2011 and our big month was April at 98K. As of yesterday, we have collected roughly $420k. With 4 months to go, I doubt we will surpass 1M. I am projecting 600K to 620K, our goal is to double sales the first 3 years, then quadruple the business the 4th year as international sales begin to pick up.
#4. Please advise on when STAU ticker is to be awarded the "Current Information" status on OTC with stop sign removal.
Financials were a mess. My old business partner, who was VP and CFO and was let go in March 2011, truly set us back months on the financials. Our old accountant had to reconstruct two years of accounting with missing documents, few receipts and little help; not an easy task. Just when the accountant thought he had the final copy ready, a ghost account would appear and he would tell me I could post the numbers. We couldn't post Jan through May until the last 2 years' numbers were perfect. I received the final version last Thursday at 4PM, and the true share count as of Dec 2010, which is posted. June financials are almost complete, the share structure should come out when we post Jan - June 2011, or possibly before. We don't need an attorney letter to get the the stop sign removed , we just need the share structure posted.
#5. Is Star Nutrition considering doing a share buy back in the near future and if so, can you advise as to when?
We have not discussed this issue in months. We are too busy to consider this issue at this time, I will address this topic in the first quarter of 2012.
#6. Are there currently any plans to enhance the Star Nutrition and Incrediwear websites?
Yes. We have already paid for our new website, construction is underway.
#7. Is Star Nutrition for sale or looking to merger?
No.
#8. When will the float be updated to August 2011 as are the OS and AS?
Answered in question #4. We have had a few calls about Star selling shares to run the business and another really bad question regarding STAU making money off every share that is purchased from brokers. Shareholders need to understand that you are purchasing shares from brokers and not from our company. It seems like a no brainer, but some traders think that we owe them because they are financing our company by purchasing shares, which is just not the case. If we sell shares as an offering then we are being aided. We have not sold shares to the brokerage companies. The free trading shares are part of the debt for shares swap.
1. We did not do an IPO. We traded free trading shares (the current float as of 12/30/10) to eliminate some of our debt. We received no funding from the sale of these shares ......zero. Our company is not funded by selling free trading shares. I am hoping the float is higher, even doubled, so there is more trading shares available for investors to purchase. I retired one 15k loan with free trading shares at 0.0005 per share in April and my old partner may have done that same in February, which we will find out this month. Once the OS and AS are posted the stop sign will be removed.
#9. Please provide a brief synopsis of the last few months in terms of Expo activity/sales estimates/ and/or other adds as may be shared.
Military expo, World games, Outdoor retailer, Lacrosse tournament, World IDEA personal trainers expo, Crusher bike event and more, produced retail buying and set us up for wholesale purchases the next few months. We sell the fruits of these efforts 6 to 8 weeks following events. The Military expo was first and we just received an order for 600 pairs of hikers from the National Guard 8 weeks after the event. We picked up several new reps and got rid of a couple reps who were not working. Summer is generally a slow retail time and yet we maintained at least 50K per month in sales, much of this was due to expo sales.
#10. Are there any plans to resume issuing the company newsletter for "Shareholder Updates" or a PR covering recent events next week? There is interest in number of employees and what people are doing, events, significant annual report comparisons, use of free trade zone, global expansion, etc., pertinent information on the company not normally covered in a specific PR which may be shared. The newsletter was much appreciated for its potential going forward.
A. Our newsletter comes out every 2 months, unfortunately our writer's mother past at the end of July so we will release it in Sept out of respect.
B. Again addressing PRs, we have PRs but we will release them in a timely fashion not one per week, as your traders want. We are trying to run a business, the stock is better served with meaty PR's, not fluff. We don't need to announce we have some of the best cyclists or rock climbers in the world testing product. We want contracts or great BOD announcements. The answer to the PR question is no on next week.
C. We are not interested in hyping the stock with out $$$$ numbers. Give us time to get the orders.
D. We have a new medical distributor, VRP inc, and complimentary products , but they told me this week I cannot PR their company. That is why I put their info on our information sheet so it is public knowledge. They have ordered $16k in products in the last 20 days and it's growing.
E. We have 3 full time independent contractors including Matthew Itamura. They work on commission only, which saves $$$. I continue to work for free. We just hired 2 new part time secretaries. We now have our own fulfillment company at our new warehouse serviced by Steven Cooper.
F. We have a national sales manager, International sales manager, fulfillment manager (billing receiving etc.) , 2 secretaries and myself......we have independent reps in sporting goods, health stores, medical, home health care and more.
G. Up coming events.....expo east Sept., CHFA Canada Oct., Radio east coast talk show Oct. Dr Ria radio Nov., 2 expos in Dec.
H. Comparison reports ......this is easily viewed.
I. Free trade zone needs more volume of product. We carry around $350k in inventory, once we hit the $1M inventory mark we will take a look.
J. Expansion.......Yes.......we have not signed the contracts yet. We have at least 8 countries we are working with at this moment. Global expansion is a huge part of our business plan, which is one reason Jose Mejia was asked to come on as a BOD. He has a huge international portfolio of business associates and has already put us in contact with some of the largest distributors in the world! He is on the BOD of one of the most respected research Universities in the US, we will try and pursue this asset. Colonel Olsen will help push the military, though our largest obstacle is the "Berry amendment" , which states for purchases over $3000.00, military must buy American made and American sourced products.
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