Panache Beverage Inc. (fka WDKA)

[thesmalls]

the distillery is now producing/running and they still have momentum with the Wodka brand. i really dont know how/where the Alibi brand sells. if they reestablish the distribution channels from 2012 (which they have) and go back to that to reestablish the brand - they could get quickly back to prior revenues on that brand. coupled with what should be increasing revenues on the distillery side - they still have a very viable business.

good thing is the share count is still very low and still closely held. there is considerable interest for Consilium to make this work. hopefully further capital will be reasonable and not toxic. since Consilium is a primary shareholder - i doubt they would cut their knees out.

though the price tanked- the volume was never cataclysmic so that remains positive. obviously the company is in pure defensive mode now. not good for communication

[CluelessStockJunkie]

That would be very nice, unfortunately I dont see it happening.

[thesmalls]

if consilium is running the show - they dont really need a CFO here. they can piggy back off of their own accountants and then send the report to a 3rd party auditor for accuracy and eliminate bias.

i would like to see communication directly from COB/Consilium similar to the one provided last year in quarterly report. just a letter from the heart in the open disclosure format.

[CluelessStockJunkie]

And down she goes.......another shell for sale soon.

[IPO$]

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.



(b) On August 26, 2014, Thomas Smith was terminated as Chief Financial Officer of Panache Beverage Inc.

[thesmalls]

CFO has been terminated. the good news is that further reduces expenses. the bad news is they are running out of people to run the company. doesnt seem like he was there long enough to make an impact one way or the other.

[IPO$]

Compensation and Benefits. As full compensation for all services to be rendered by the Employee to the Company during the Employment Period, the Employee shall receive the following compensation and benefits:




(a) Base Salary. During the Employment Period the Company will pay the Employee an annual base salary of One Hundred Twenty Thousand and No/100 Dollars ($120,000.00) per year (“Base Salary”). All payments of Base Salary will be made in installments according to the Company’s regular payroll practice, prorated monthly or weekly when appropriate, and subject to any withholdings that are required by law.




(b) Signing Bonus. At the inception of the Employment Period the Company will pay the Employee a signing bonus of Twenty Thousand and No/100 Dollars ($20,000.00) as a one-time payment. The payment will be subject to any withholdings required by law.




(c) Quarterly Bonus. During the Employment Period the Company will pay the Employee a minimum guaranteed Quarterly Cash Bonus of 2.5% of the Base Salary, Three Thousand and No/100 Dollars ($3,000.00) per calendar quarter. The Board of Directors, in its sole discretion, may authorize additional cash bonuses to Employee based upon performance criteria set by the Board. All payments of Quarterly Bonus will be made in the first pay period following each calendar quarter-end and according to the Company’s regular payroll practice, prorated monthly or weekly when appropriate, and subject to any withholdings that are required by law.

[CluelessStockJunkie]

Nope, looking glum.

But them paying .15/share is supportive to a higher value than now.

[thesmalls]

from 10Q:

We are modifying our business model which is expected to continue to evolve and, accordingly, there can be no assurance that we will generate revenue sufficient to sustain our operations in the near future, if ever.

In lieu of brand sales projections falling short and realization that gross profit goals have been significantly less than expected, the Company will focus most of its resources into achieving contract value at Panache Distillery. In order to be successful, our current and future product and service offerings will need to continue to achieve broad market acceptance. Our ability to generate significant revenue will depend, in large part, on our ability to attract a sufficient number of customers. We are subject to the all of the risks, uncertainties, expenses, delays, problems and difficulties typically encountered in the growth of an emerging business and the development and market acceptance of new products and services.

this is consistent with last quarter concerning operations. revenues still running 50% of 2013 numbers YTD. customer mix is more diverse than 2012 and 2013 but none of the brands are getting back to past numbers and/or exponentially growing.

i was looking for a shareholder statement/address from the COB similar to this time last year. i thought it was a great address even though it ended up being off.

the company will require additional financing before the end of the year and/or get further credit from Consilium. so far they have continued to invest and restructure even though things looked bleak so they must see long term value or they are limping it along until they find a buyer for the distillery.

Shara's purchase of 300K share at $45K in late June also suggests long term value here.

nothing in the report to spur interest though in the short term.

[IPO$]

I'd be curious to see the upcoming 10-Q results.

[thesmalls]

they cut out probably $600-700K+ in salary by letting them go. Obviously more with bonuses.

big question is how instrumental is/was Dale in furthering the brands based on past relationships? can they still grow/exponentially increase sales of Wodka, Alibi, etc without and/or will it take considerably more time? that being said - sales/revenues obviously stalled tremendously under his watch. was he too focused on vertical integration instead of growing the core business? or was he moonlighting here and taking the high salary for as long as investors gave him excuses for not performing?

revenues are considerably down 2Q14 vs 2Q13. will new mgmt/Romer provide any guidance going forward and strategy update on how they ramp back up and take advantage of new distillery and prior distribution contracts?

if he can do that with any amount of believability - i think stock price will recover a little. right now - there is no one believing there is a turn around imminent and current shareholders are sitting tight.

[IPO$]

expenses were cut drastically after former mgt. was fired.

[IPO$]

I presume former mgt. too very high salaries, not commensurate based on the profits of the co.

[CluelessStockJunkie]

$.07 bid........amazing

[thesmalls]

Im surprised there hasnt been an uptick in interest and volume after the release of the NT statement. While revenues are sognificantly down Q toQ from 2013 to 2014 - expenses are DRASTICALLY down due to restructuring and swung the auarter to a gross profit.

Company should start realizing revenue gains from distillery in current (3Q14) and if they get back to prior sales focus on the key brands - they should see a return of product revenues.

Amazing how much expense was tied up in former mgmt.



Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof? Yes x No o


The Company expects to report a net gain from operations before non-controlling interest for the quarter ended June 30, 2014 of approximately $995,650, compared to a loss of approximately $953,888 for the quarter ended June 30, 2013. The increase is due primarily to the Company’s second quarter 2014 restructure. While net revenues have decreased from approximately $1,425,435 for the quarter ended June 30, 2013, to approximately $655,690 for the quarter ended June 30, 2014, the results of the restructuring have significantly decreased operating expenses from $1,478,054 for the quarter ended June 30, 2013, to approximately $495,680 for the quarter ended June 30, 2014. In addition to the significant decrease in operating expenses, the restructuring also resulted in an increase in other income from associated debt restructuring.


If so: attach an explanation of the anticipated change, both narratively and quantitatively, and, if appropriate, state the reasons why a reasonable estimate of the results cannot be made.

[thesmalls]

there was a steady stream of supply at $0.30 range. it was constantly being offered in 3-5K offers and would immediately refill after being hit. that supply finally exhausted or seller stopped liquidating.

saw something similar happen after mgmt overhaul though it was accelerated.

i agree there are few available shares but if you buy at the ASK - the orders will still quickly refill. i dont know if there is 30K shares behind those constant 3K offers on the ASK or 300K.

i am more cnocerned with their own brands than the private label. private label/contract business is very competitive and commodity based as any one with open lines/capacity is competing to get to full production. i need to do some DD and see how much actual capacity exists in this realm but my guess is it probably isnt anywhere near 100% which would provide margin leverage. however, with the relatively brand new facility, they may have some inherent cost advantage to production that could enhance/make attractive their margin even in a commodity environment.

[CAPTNEMOS]

JUST WATCH WHAT IS GONNA HAPPEN SOON

They have distillry going and are upgrading for more production and to set up there own source and supply.More contracts for products being signed and rollout of 5 new spirits i think.I sat and listened to the annual meeting of investors and if u own this s6tock you should do the same.They always annunce news after 2nd week of the month usualy.good luck.If there is any kind of buying this stock will fly being not alot of volume andalso not alot of shares on the street reaaly.

[thesmalls]

and the stock options do not immediately vest. they vest over periods to help insure long term involvement/attention by those receiving the options (the way almost ALL options and stock awards should be given).

i was a heavy buyer in the mid to high $0.20s and low $0.30s. obviously i would have liked to have waited about two more months to have been a heavy buyer but c'est la vie. i have too much tied up in this at this point to wait for turnaround. if it remains at this level for another couple of months - i will lower my cost basis and then sell the higher cost based shares at the end of the year for the tax loss. however, right now, i have risk capital employed elsewhere and have these shares as a long term hold.

i still like the company/brand but am obviously concerned about the complete mgmt overhaul and lack of strategic specifics with current brands vs distillery and feel the company should provide some guidance going forward to confirm the viability of the brand/revenues in 2014 to provide credence for the shakeup.

[CluelessStockJunkie]

Most of the stock issued to new management was around .15, I think anything you pick up under that is a VERY safe bet.

[thesmalls]

new accountant signed rather quickly after buyout of existing accountant. no adverse effects or statements. bodes well from a financial standpoint.

now - will new mgmt be more effective in accelerating the brand/sales vs. Dale or will they be more focused on being a 3rd party packager with florida distillery?

company is still very active in social media - specifically twitter.

[thesmalls]

Confounding stock/company. Really thought they had the right organization and history to make this work. Dnt know what to expect for 2Q14. Expenses should be down dramatically with the shelving of upper mgmt

[thesmalls]

looks like a new buyer stepped in and took out the persistent seller at $0.15

we should know in the next week if this was an inflection point for the stock. i still do not see a lot of movement until there is some meaningful guidance going forward. still a lot of drag with the uncertainty with the mgmt overhaul, CIC, debt defaults, etc.

company is still very active on the social media front. still seem to be doing the promotional/marketing work which is a good sign they are spending money/investing in brand awareness/growth.

[CAPTNEMOS]

Also have they moonshine coming out soon,southern fire shine or something like that.

[CAPTNEMOS]

Alot of upside for this company.Growing at a good rate and future is promising.Could be perfect timing.They are ripe for an acquisition from a big beverage comapny looking to expand its products.Alot of the Bigs donlt like starting up new brands anymore.They look for small companies to gobble up that have products already established.Good luck and do you own DD.

[frenchy]

Anyone here know the status of this contract?
http://ih.advfn.com/p.php?pid=nmona&article=62304381

Started bottling already? In NY or FLA?

[panther14565]

Always looking out for insiders buying, noticed a big one here, is it a good story here?

[thesmalls]

Great article in June Tasting Panel Magazine on the Panache Distillery. In the article it states the distillery started producing this spring and is doing all of their in house brands at the distillery. That seemed to be at odds with the 8K but that did leave room for interpretation.

Once again this stock is starting to look very cheap.

[IPO$]

You're correct. They refer to themselves as a developer, not a manufacturer. They are also importing again. They refer to NY operations. I wonder what happened to the Florida facility.

[IPO$]

I don't know why they can't manufacture. They bought the facility with Consilium funds, not theirs. I think they are using a distributor. It's been a while since I reviewed the press release. Let me take a look at it.

[thesmalls]

Trying to understand the significance of them reaching out to their prior importer of record...

Looks like they do NOT intend to mfg Wodka on their own anytime soon. Is that correct?

[IPO$]

Panache Beverage and Domaine Select Announce Portfolio Import Deal

[Brads]

Budgets - the documents filed refer to "attached budgets" - are these a public document - has anyone seen them?

[Brads]

Budgets - the documents filed refer to "attached budgets" - are these a public document - has anyone seen them?

[thesmalls]

the structuring seems positive as well as the compensation. i dont like that i am a larger shareholder than any of the current offices/mgmt though. that is somewhat disconcerting. i also would like to see real insider buying instead of all the shares being gifted/compensation.

i hope they continue to push the internal brands and not just become a contract packager. while that can drive revenue and provide consistent returns - it will never provide explosive growth or be much a of a buyout candidate to extract a premium. i saw the distillery as a way to integrate production, reduce operating costs/increase gross margins, and then increase revenue by using excess capacity for third party production. it still isnt clear what the long term plans are for Wodka or Alibi or the new ones announced earlier this year.

[IPO$]

True. It is good to keep an eye on it for now and see what Consilium does.

[thesmalls]

None of the options were below market and they vested partially up front and then every 6 months. That is also a very good sign. I was surprised there wasnt some activity today after that release. I almost started buying again. But with the position I have and thecomplete lack of volume - it certainly isnt prudent. The positive side is the motivated seller seems to have exhaustedtheir supply or are taking a break. If it remains flat - I will consider buying again with some purpose.

[IPO$]

150,000 options issued expiring in 2017 at a strike price of $.15 is a very good signal to the street.

[IPO$]

I hope the seller is finished too.

[thesmalls]

not to be overly cynical or a smartazz- but cant that be said for any stock on the market...?

ironically - i liked the risk/reward scenario a lot more when it was trading in the $0.30s prior to the shakeup than i do now.

their SG&A should be drastically reduced and they should start seeing revenues from the contract side of the distillery in 3Q14. however, there has been nothing shared to suggest they have reversed the trend on sales in the primary brands. some guidance on that front would be dramatic for the confidence and remove considerable risk associated with the entity going forward.

right now - we are at the mercy of how Consilium values the investment and the opportunity risk they have with their capital employed. they may decide it is better to bail, liquidate and/or sell the assets/distillery and brands; take the loss; and move the capital to another more sure or higher ROR project. the losses on these types of deals can be more valuable than a small gain due to an accounting standpoint.

from that aspect - the risk/reward scenario seems a lot worse. obviously in hindsight - i would have liked to have waited until now before i aggressively added to the position. the good news is the selling still seems to have been contained to one seller/group. it was rather consistent most of the way down except for a small spike in selling right after the resignation of teh prior mgmt team.

that could have been part of the reversal yesterday - the seller may have finally exhausted their position.

[IPO$]

I like the share price if certain things occur.

[thesmalls]

where does the optimism come from?

[IPO$]

The future is bright.

[thesmalls]

again - if i am understanding the pledged shares correctly per the filings and the conversations with others regarding the arrangement - it shouldnt be an issue. my assumption is that is why they resigned in the fashion they did. Consolium had the leverage and it was either get out of the way and try to make a return down the road or watch it all go belly up and become instantly worthless.

i would like to think it was poor judgment and failed strategy rather than deliberate misuse/conversion of company money that led to the poor results. i really liked the approach to vertical integration and ability to diversify with the distillery. i thought the brands (Wodka and Alibi) had considerable more traction than the filings showed and i attributed the decrease in 2013 to the move away from the Polish importer/inventory.

the next quarter should reveal more about the long term future.

[IPO$]

Interesting.

[thesmalls]

those shares were all pledged. if i understood the filings correctly and speaking with another - those shares for all intents and purposes belong to Consilium. the loans were backed personally and the shares were pledged as well. it would not do them any good to do a R/s with respect to those shares. they have more leverage by just revoking the agreement and sending the company into BK making the shares worthless if the former mgmt/directors dont play ball.

[IPO$]

I think the biggest item that would potentially hurt the price is a reverse split. I am hoping Consilium can regain the shares from former insiders that it more than graciously invested in. Consilium bore all of the risk and therefore needs its shares back.

[thesmalls]

i noticed that as well. first time in weeks that the BID became active. could just be the seller has finally been exhausted or speculators think this is the bottom.

just moved to 11.2K at $0.13 and ASK at $0.14. welcome sign. hopefully this is a long term reversal and not just short term volatility.

[IPO$]

some buying starting to come in. does someone know something?

[IPO$]

Yes. Also, a high on the hog lifestyle by him was financed by consilium. Consilium needs to look at every vendor invoice closely and call the vendors to see that work was over performed. Easy area for fraud and illegal kickbacks

[thesmalls]

Now we know why mgmt was forced out. Dale toom in close to $600K in 2013 and the results certainly didnt warrant the bonus. The salary was high relatively speaking.

I wonder where they missed on their strategy. They had the growth and the brand seemed very well positioned and resonated with the resllers and distributors I spoke to.

Part of the cash dran was repatriating production. It doesnt appear they realized that was going to be significantly more difficult to break from Poland/international relations rightz.

Big question now is there enough momentum/traction behind the brand to rejuvenate the growth or will Consilium just try to make the distillery a profit function.

Very disappointing. Looks like ego and past success got in the wayof a pretty good idea and launch.