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Great. Any expected timing for robot installations?
Thanks for your response as I too wondered how you were able to survey franchisees, other than those who have been quoted in previous PR's. Your comments from franchisees who have operational kiosks are in accord with what they have chosen to publish on this thread and with what I have personally learned.
Closer to the ask than the bid.
Seems like one just did.
Not sure where you are getting your information, but most of the big blocks (7000+ to 17,000+) have been at the bid of 0.65 with only 3500 shares bought at the ask of 0.7.
Thanks FroYoMan. Although I am not a franchisee, the information I have been able to get is in complete agreement with what you posted and I agree fully with your conclusions.
Alvie
"...you should want these shorts off the board. "
The board is for longs and shorts alike and can't be restricted to just one or the other. You read the posts and make your own judgements. And, of course, you do your own research concerning the stock. There is always the 'ignore' option if you believe a certain poster is totally out of line.
"I think it very misleading of the company to say there are 188 machines installed and then say somewhere else there are a total of 170 machines installed and operational."
I believe you are referring to quotes from the 10-Q where they say they installed 50 and 120 machines during the 1st and 2nd quarters of the 2019 fiscal year, for a total of 170 machines installed during that time period. However, they had previously installed several (don't recall actual number) machines in June 2018 (the previous fiscal year). Also, the 188 number was stated as of the date of the report (Feb 14), which would include machines installed in January 2019. Confusing, I admit, but so it goes.
BTW, the company website has been updated to include the number of installed machines as well as franchisees, locations secured and pending installations. What is lacking is the actual date for those numbers, but I assume since they said they would be updating machine installations monthly that those numbers are probably as of Jan 31.
VEND Home Page
Shares sold short dropped from some 327k on Jan 15 to below 114k on Jan 31 - a drop of some 65%. Would expect the number to be even smaller for Feb 15.
My apologies, doesitreallymatter. Although I was replying to your post, my reaction was primarily toward the two posters who signed on specifically to comment on VEND. I know you have been an IH member for some time although just posting on this thread recently. In my 30 years of investing, much of it in small stocks, often start up companies struggling to achieve positive cash flow, it has been my experience that newly signed on posters who are not investors but only post negatively are more often than not only attempting to drive down the stock price for themselves or others to short.
As far as specific replies to the question about company owned kiosks, I am currently out of the country without my background information (I have been an investor off and on since January 2014), but here is my understanding of the situation. When VEND was evaluating the Robofusion opportunity they examined the performance of 3 of their machines - I don't recall whether these were machines Robofusion already had in operation or were newly placed machines with locations specifically chosen by VEND, but believe it was the former. At any rate, after acquiring Robofusion one or more of those machines remained in operation. As quoted in the recent 10Q referencing the 19 Degree Revenue: "As of December 31, 2018, there was one company-owned robotic soft serve vending kiosks included in fixed assets." These older machines are not part of the companies future plans, which is why there has been decreasing revenue from them over time.
As far as the newly developed kiosks, where installation began in summer 2018, quoting again from the 10Q: "During the three and six months ended December 31, 2018, 120 and 50 robotic soft serve vending kiosks were installed and operational, respectively, and the Company had no further material conditions or obligations. There were no vending kiosks operational during the same periods in the prior year."
I am an investor and not a franchisee but live close to one of the first machines installed during 2018 and have sampled the product numerous times and have communicated with the franchisee of the machines several times, always receiving a truthful response about early problems and their resolution and have observed the successful fix of the (relatively minor, in my view), problems.
WE ARE SAVED FROM OURSELVES!!!
In the last three weeks alone we have been joined by three self-proclaimed saviors - one even internationally.
Of course, it would help if they knew something about the company before trolling it. Case in point - from a recent post:
"Now let's look at company owned machine sales. This is a critical metric because these machines have been out there the longest, which would give everyone an idea of what sales could do over a longer period of time. Especially when you compare year 1 (2017)to year 2 (2018). The six months sales for 2018 and 2017 were $42,000 and $96,000. So, sales decreased by over 100%. The three months sales for 2018 and 2017 were $13,000 and $34,000. Again, sales decreased by over 100%. I don't know about anyone else, but if I was a franchisee, I would be very worried about that trend. Keep in mind, these are prime locations so that the company can show what kind of potential income is possible. A case study, if you will."
The problema is that VEND has yet to install it's first company owned kiosk, let alone at cherry-picked prime locations as claimed.
The poster would be more credible if he/she did a bit of research on the background of the company instead of just spewing. JMO but I think I will follow the advice of franchisees and others who know something about the company rather than the new "experts". Wonder where they are coming from and why the sudden interest in VEND? HMMM.....
Looks good to me. Slow and gradual increase with potential for dividends in 2020.
Wow. Two PR’s and a 10Q all in one week.
NAK back to 1 and rising.
Good news/bad news in today’s PR. Sales showed a good increase month to month, but machine installations will not increase as rapidly as previously anticipated, averaging 20-30 per month for the remainder of the fiscal year before increasing to 100+ per month.
Thanks to Nick and his replies as well as the addition of his comments, and thanks to Sonata for sending to VEND and for posting Nick's reply.
As far as total number of units installed as of Dec 31, I haven't found that number even though Nick says it is available from prior PRs. Anyone know what it is?
– Generation NEXT Franchise Brands, Inc. (VEND) announced today that its flagship subsidiary, Reis & Irvy’s, has signed an exclusive franchise agreement for the robot-staffed frozen yogurt and ice cream chain in Salt Lake County, UT and Utah County, UT.
Salt Lake and Utah Counties
The $5,000,000 exclusive territory contract includes the upfront purchase of 23 kiosks for $1,150,000 along with contract commitments to purchase an additional 77 kiosks (100 in total).
Salt Lake County, the most populous county in Utah, is home to more than 1.1 million residents and includes Salt Lake City, the state capital. The University of Utah, with a student body of well over 30,000 is also located in the county. The county’s ski resorts attract tourists from around the world, and Salt Lake City is home to a number of technology companies.
Utah County, with a population of more than 500,000, is Utah’s second-most populous county and is home to the city of Provo, the state’s third-largest city. Also boasting more than 30,000 students, Brigham Young University, or BYU, is located in Utah County.
Combined, the exclusive territory represents a population of more than 1.6 million people in Utah’s largest metro area.
“When we heard of Reis & Irvy’s we immediately knew that this was going to be something that would thrive in this area. We know that a quicker, easier, cleaner, and more exciting way of getting a quick-frozen treat would be welcomed in the Salt Lake/Provo area. The idea of using our modern-day technology to deliver your frozen yogurt in minutes will not only revolutionize this area but bring joy to the people of Utah,” said Jason Olson, the Reis & Irvy’s Exclusive Franchisee for Salt Lake and Utah counties, Utah.
“More concentrated ownership of Reis & Irvy’s robots and franchisees with larger footprints makes a lot of sense to us at the head office. We can work closely with these franchisees and their teams to build long term relationships with location partners throughout each community they represent,” said Nick Yates, CEO of Generation Next Franchise Brands (VEND). “We have built a network of exclusive territory franchisees that all bring something special to the table. These entrepreneurs are engineers, software developers, fund managers, sales and marketing professionals and logistics experts. Jason is no exception, and I have no doubt he will represent the Reis & Irvy’s brand the best way possible throughout Utah.”
In addition to his new Reis & Irvy’s franchise venture, Mr. Olson is the president of a mechanical contracting company whose work includes projects for hospitals, universities, public schools, retail stores, restaurants, churches, hotels, assisted living centers, banks, office buildings and more.
It’s good to hear that a franchisee, who probably has more insights into the business than the rest of us, is also an investor. Care to comment on whether you have a machine and what kind of location it’s in, e.g. university, mall, bowling alley, etc?
Also, some time back someone estimated it needed to deliver 30-40 servings a day for a unit to be profitable. What are your thoughts?
Thanks, Alvie
“Additionally, the actual population numbers for the region, according the US Census Bureau is a mere 197K,”
197k is the official number for the city of ‘Augusta’; the metropolitan area is listed as 600,000, which includes the area across the river.
What population is required to support a R&I robot I’ll leave up to the franchisees to respond to.
You seem to know him. Would you like to do that? I’m waiting for some of the current franchisees with robots to reply. As someone said, a poster with no shares is suspect.
If anyone is going to talk with someone from VEND, some of the questions I would like to see answered are:
1. Has a unit been delivered to Walmart for their testing?
2. How many total units were installed as of Dec 31 or Jan 31?
3. If FLEX has begun production again at what monthly rate will they deliver robots?
4. If VEND has prepaid FLEX for units, how many total units have been paid for and are yet to be delivered?
Also, the Generation Next home page lists number of locations, franchisees, etc, which has not been updated for several months. If they are going to be reporting monthly I would like to see them update the home page monthly, including how many total units have been installed.
TO ALL: IH is very accepting of attacks on principals of the company but pretty strict about attacks on other posters. Some recent posts may be close to getting a poster suspended if not careful….just saying
Alvie
I would like to see December numbers so we know where January numbers are starting from. Will probably have to wait for the 10Q which should be out next week with results through Dec 31, 2018.
Out of the country for a few weeks so no way to contact anyone.
From today´s PR: The patented technology is currently installed in over 170 US locations with 20 kiosks now in Canada and Australia.
So over 190 total installed units - didn´t know they had deliverred some to Canada and Australia.
Also:Flex has resumed production at its plant in Columbia South Carolina. The addition of Stoelting will increase the Company’s production, thereby benefiting overall installations of Reis & Irvy’s robots through the end of 2019.
Looking forward to actual numbers….
300,000 shares in the first 15 minutes with many at 0.87 - approaching 0.90 resistance.
Generation Next Announces January 2019 Results in First Monthly Report
BY GLOBENEWSWIRE — 10 MINUTES AGO
Company Books Additional 31 Franchise Commitments for $1.7 million in Deferred Revenues Among Other Highlights
SAN DIEGO, CA, Feb. 05, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Starting with January 2019, Generation Next will be providing monthly reports on operations. For the most recent month, the Company:
Booked 31 new Reis & Irvy’s franchise commitments worth $1.7 million in deferred revenue (averaging $53,000 per robot)
Inked a $1.9 million Master Franchise Agreement in Augusta, Georgia
Installed 18 robots for monthly revenue of $684,000 using a $38,000 average revenue recognized per robot
Secured 45 new location accounts bringing total locations waiting robot installation to 250
Served 45,491 cups of Dannon YoCream frozen yogurt generating $215,545 in revenue for Reis & Irvy’s franchisees
On January 8th, the Company announced the launch of 19 Degrees Corporate Service LLC (19 Degrees) to provide Reis & Irvy’s robots to locations outside of existing franchise territories. Since the announcement, the Company:
Sold 35 units of 19 Degrees which resulted in the Company collecting $708,400 of investment to be used for the purchase and installation of robots.
Allocated 74 of the 250 open locations to 19 Degrees Corporate Service LLC
“I am pleased to begin sharing monthly results with our shareholders and franchisees beginning with January 2019,” said Nick Yates, CEO of Generation Next Franchise Brands (VEND). “This year it is important to me to be transparent with the results we accomplish, opportunities we pursue, and the challenges we face as we continue to bring this revolutionary new technology to market.”
"There is no such thing as a buy without a sell"
I agree - in the long run, but not necessarily on a daily basis.
There are a dozen Market Makers registered for VEND with some 4-6 active daily. Their role is to maintain an orderly market. To do that they sometimes have to buy stock offered for sale even if they don't have an immediate buyer for it - "building inventory" in anticipation of making a profit by selling it later at a higher price. Of course, they don't have to pay what the seller wants but 'compete' in offering a buy price (the bid) for the stock and the seller can accept if he's willing to sell at that price.
Correspondingly, if numerous parties want to buy stock and there are no sellers at the moment, the MM can offer the stock from his inventory at a price that makes him a profit (the ask) and the potential buyer can decide if he's willing to pay that price or not.
So, yes, there's a buyer and a seller for every trade but often one party is an MM and not necessarily an individual investor. Over time, if the MM's are astute in their buying and selling, they clear inventory and make a profit for themselves.
You can watch all of this unfold on Level II (or on the OTC site for VEND and certain other stocks) and see the MM's move around their bid and ask and try to undercut other MM's if they want to be a buyer or seller. For instance this morning when two MM's were offering to sell stock at 0.5996, another jumped in and offered 0.5995 and managed to sell 2000 shares at that price. You can also go to the IH VEND page, click on "VEND Detailed Quote" and then on 'Trades' to see the individual trades and the bid/ask at the time of the trade. Very interesting and potentially illuminating.
If my understanding of how the MM's work in this market is wrong, please advise.
Alvie
Looks like some 95% or more of the trades today were buys. Somebody(s) expecting good news soon?
According to Fidelity the count is 856k at 11:56 am. Are they not current?
punched through 0.8 and now trading 0.81-0.82
now .828-.83 with last at .83...…….
Per the SEC statement by Blackrock, they own 23.4MM shares of PVG, 12.8% of the shares.
Don't know whether this is a change from previous statements.
Buys have outdone the sells by nearly 2 to 1. If that continues there is no way to keep it below 0.8, IMO.
Fully agree, DDR and Sonata. Let's hope the information comes soon and regularly.
Reis & Irvy's Robot Staffed Frozen Yogurt Chain Inks $1,900,000 Master Franchise Agreement in Augusta, GA
Augusta, GA -- January 31, 2019 -- InvestorsHub NewsWire -- Generation NEXT Franchise Brands, Inc. (OTCQB: VEND) announced today that its flagship subsidiary, Reis & Irvy’s, has signed an agreement with exclusive master franchise rights for the robot-staffed frozen yogurt chain in Augusta, GA. The $1,900,000 deal includes contracts for 12 Reis & Irvy’s locations along with an agreement and letter of intent for an additional 24 locations to be secured throughout the exclusive market.
An Industry Disruptor
Generation Next Franchise Brands, Inc. (OTCQB: VEND) is the developer of the world’s first fully-automated robotic frozen dessert vending kiosk designed to disrupt brick-and-mortar competitors. Reis & Irvy’s unattended robots eliminate the need for costly rents and employees, significantly reduce food safety concerns, theft, and are capable of operating 24-hours a day.
Reis & Irvy’s-branded signature robot characters of the same name can dispense servings of frozen yogurt, ice cream, gelato and sorbet topped with a selection of six delicious toppings in under 60 seconds. With self-checkout touch screen ordering and payment options, video animation, music, and delicious frozen dessert provided exclusively by Dannon, robot vendors meet consumers’ demand for immediate convenience, entertainment and a superior quality product – be it in shopping malls, airports, hospitals, tourist attractions, movie cinemas and any other high-traffic areas.
Susanne Shepherd, a previous franchise owner of Little Caesars sees and amazing opportunity for the Reis & Irvy’s brand ahead. “I really look forward to working with these frozen yogurt and ice cream dispensing vending robots,” says new franchisee Shepherd. “While I enjoy working with people, there are many advantages to working with robots. Robots work the same speed no matter how long they have been working, they do not call out, do not ask for breaks, do not steal, they proportion correctly, and they are more sanitary than brick and mortar competitors. I look forward to the opportunity to bring this revolutionary idea to the Augusta, GA area.”
The Augusta marketplace continues to grow, offering numerous high traffic locations for placement purposes. The city is the 2nd largest in the state, behind Atlanta, and offers great infrastructure for the development of the franchise. Augusta, most commonly known for hosting the Master’s Golf Tournament each spring, has a population of 600,000 and is considered a regional center of medicine, biotechnology, and cyber security. Shepherd, along with Reis & Irvy’s, believe the local demographics and marketplace will complement the robotic vending concept as the area continues to grow, offering any number of major location opportunities. The city's three largest employers are Augusta University, the Savannah River Site (a Department of Energy nuclear facility) and the U.S. Army Cyber Center of Excellence at Fort Gordon.
“We love appointing experienced franchisees that comes to us from other concepts to represent the Reis & Irvy’s brand, so having Susanne join our growing team at this level is certainly appreciated,” said Nick Yates, CEO of Generation Next Franchise Brands. “Having already secured two of what we believe will be successful opportunities in the territory for Susanne, we feel like we are off to a great start! We will continue working on new opportunities within the Augusta market so that the community quickly sees Reis & Irvy’s as the go-to for convenient, fun and delicious soft serve.”
Reis & Irvy’s: Franchise Expansion Highlights:
Since its debut, Reis & Irvy’s has grown to over 298 franchisees across the U.S. and represents over 1,450 pending robot installations aggregating approximately $69 million, with additional contract commitments for over 2,650 robots worth an estimated $103 million ($172 million in total) in potential future revenues for Generation NEXT Franchise Brands, Inc.
With $172 million in franchise and licensing contracts, Generation NEXT Franchise Brands, Inc. (OTCQB: VEND) is leading the way with frozen desserts, fully autonomous robotic delivery, visual and audio entertainment, and a unique retail experience. The robots also accept cash, credit cards, Apple Pay and Google Wallet, and the company is working on accepting cryptocurrencies for payment next month.
For more information, visit the Reis & Irvy’s website at www.reisandirvys.com or call Toll-Free (888) 902-7558.
Generation NEXT Website: www.gennextbrands.com
I believe the 250 year end number is unrealistic, although I agree it would be great. In the Dec 10 Shareholder Update, Yates said the number of installations as of that date were 137 with an additional 25 ready for installation in the next week and projected approximately 187 installed by the end of the month.
As a 'glass-half-full optimist', I have been thinking that 200 by year end would have been great (anything exceeding company expectations for the first time ever.)
Alvie
of course, if it shoots up to $5 suddenly (not saying it will, but if it does) you might be more sorry than angry....
Congratulations, and welcome to the community of shareholders!!
You're correct - that number can be misleading and it is probably much higher than 350. But the point is that major shareholders have not been panicking, even those with more insights than the rest of us.
The test will be whether there is wholesale selling with any price rise.
Another point I meant to make had to do with the some 50MM free trading shares. According to the transfer agent, there were only 350 shareholders as of 10/19/2018, which would imply an average of 150,000 shares each. It's very likely that the majority of shareholders hold less than 100,000 shares apiece, probably less than 50,000, leaving a number of shareholders with large holdings, probably averaging several hundred thousand shares apiece.
The point is, only a small fraction of shares trade daily (100,000 a day on average, with less than 20,000 today.) This says the major shareholders are not selling, and some of those are franchisees also and know the status of machine deliveries and probably understand the problems.
Net result, there is no panic among major shareholders in the know, which is encouraging.
'doesitreallymatter' has made some good points, and while I don't necessarily agree with all of them, you can't argue that the stock being at the current price of $0.58 is not favorable to anyone. While I have talked with Yates and IR in the past, I haven't done so recently and so am going on published information in my assessment.
The increase in share count was a large factor in the share price decline, along with the difficulty in the timely delivery of the robots. The fact remains that Yates holds some 24% of the outstanding stock and has options to acquire more as certain benchmarks are reached, e.g. when installation of 400 robots is achieved he can pick up another 2.5MM shares at 0.16, and another 2.5MM when 800 machines are installed, with additional options at 1200 and 2000 installations. I expect that between the nearly 20MM shares he holds and the options to acquire more, he is working hard to increase the share price and install machines as fast as possible.
The PR from last week promised "...a follow-up statement regarding its supply chain which will include production estimates through August 2019 and an explanation about why deliveries have been slower than previously anticipated" with the update promised for this week. I'll hold fast and wait to see what it says.
JMO, Alvie