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That is Great news! I think that should help regain the friday drop off!
Let's hope he has more experience than the last one. Doesn't seem to have lots of big public company financing experience.
3k were mine... had unexpected moving expense pop up...:(
I would love to see this move back in the $1.36+ range. The last few days have been really disappointing and today's slide is even more depressing...:(
I am holding 25k shares.
my 25k shares are a tiny shadow of yours... but I also bought in during 2016 election and held til now...:)
That article didn't have a very positive or even neutral vibe as opposed to other Atty General statements from other states. Oregon is core EVIO territory and for the short term at least, the center of the lion share of revenue.
We need to watch this one closely...:(
Proposed 60% ownership of C3. This would help as they have existing lab with license. Not a 100% acquisition, but more joint partnership.
non-binding agreement thus far.
quick scan feels like we actually purchased the lab. $500k + 1mil note at 8% due in 8 months.
This doesn't look like florida license agreement.
Thanks Ford
I have been told there are 12 private lab testing companies in Colorado, any idea how many public? Trying to get a feel for possible revenue from licensing agreement and market.
Thanks,
Shares havent been delivered to Apex for FirstTrade either.
The goal was to get the stock above $1.000 a share so it can attract more investors and move out of the extra fees for most brokers.
1:20 wouldn't get us to $1/share.
His update on testing equipment was that all the company related documents have been submitted to ORLAP. They are waiting on ORLAP to do the site inspection and review the documents and certify the testing. He did not provide the timeline.
He did indicate outsource services costs about $250k a quarter or 33% of revenue, and post certification, it will no go to zero as they will have some overflow once in a while, but overflow peak period doesnt justify cost of new equipment which wont be used at capacity year round.
Hi, sorry for the delayed response.
I am not in the service area of SGBY at this time..:)
We pay around $355 per batch we outsource for pesticide/residual testing in oregon. The $355 is the posted testing price from other labs for testing pesticide/residual for accredited lab.
When our lab equipment is certified by state, we can test in house and avoid this fee per batch we test and in theory... might be able to take on some additional testing that is being sent to the couple of labs currently accredited for testing pesticides. There is a backlog in testing pesticides as few oregon labs actually can do that test themselves.
Definitely not the average shareholder here.. 250:1 is brutal cut...
Kevin
Looks like the Pesticide testing gear didn't come online in the quarter, this drove our cost of revenue out of the stratosphere again... and also resulted in lost revenue for testing pesticides from other labs as well.
The conversion of notes is as expected as we have watched cdel and other liquidate shares...
Overall.. not a total shock, just a bit of a bummer. Would love to hear/see anything from Oregon on the certification of the labs for testing pesticides... Anyone have that lab certification chart by Orlap handy? That will be the real driver of sharply higher margins for the meantime when we see Evios labs certified to test pesticides in California and Oregon. Right now, we collect and then pay another lab retail rate to do those tests...
Time to wade into the mix. I have a few million shares I hold and will hold until i personally decide to move on. I have voted on the proxy vote already and encourage each of you to do likewise as your heart dictates.
I am honestly a little surprised by some of my fellow posters here. The business plan was laid out already with direction for expansion into California and recently the closed acquisition in MA and the licensing agreement in FLorida.
I do also like it better when my per share price is moving north, that makes me smile. However, I do not expect the CEO of a 15 million dollar company to send out daily emails and PR with his new and revised strategy to execute what he has already told us.
Am i happy with the delayed financial report yet again? No, this rests more on the shoulders of the CFO than the CEO for those who are remotely familiar with financials. CFO's deal with auditors and financial statements, CEO's sign off saying they agree. The CEO is not the person doing the financial statements and should not be!
CEO's should be working on strategic initiatives, securing funding and long term growth. If the CEO is doing and solely focused on the day to day operations, the company will no grow. This is where we delegate into a COO or in our case Chief Science Officer role. That person should be into the soup eyeball deep in all lab testing results, accreditation, new equipment calibration and all things science involved with the lab testing.
I guarantee if you send email to a CEO in most other companies, your email will never reach him/her. It will get intercepted by investor relations or executive department screeners.
It does take time to buildout a new facility, more time in some places like California with crazy zoning requirements etc. From the time they sign a lease until fit out is complete, equipment is installed and certified, lab gets accredited, and is fully trained and operational is not a 3 month deal. This will be every bit of 6 months on an aggressive time scale.
The only real question for me as I wait for the past due financial statements is did we get the pesticide testing machines online, calibrated and accredited by Oregan State officials in time to reduce the testing we outsource and begin actually taking in pesticide testing from other labs. This is the single largest revenue/profit swing item at play with the existing business.
I for one will stay long and keep watching as I can see where some chips are already lining up for SGBY soon to be EVIOS.
For all my fellow longs, hang on as you see fit, for the traders.. my the timing wave be with you. But for everyone, take a deep breathe, grab a beverage of your choice and let the CEO try to execute strategic plans. If you can not or will not be able to relax for a few days, maybe OTC is not the right arena for your investments. Vegas offers Bacarrat,... Player, Banker or tie... much less stress and immediate feedback per hand without delay. Get a hot streak, you can come close to what longs and many traders have made so for on sgby...
Mandatory testing in California doesn't start until Jan 2018. So in reality, there is still time to implement more spokes around the new hubs we have in place/process. The revenue in Calinfornia testing now as voluntary is nothing compared to what it should be in January next year.
Anyway.. Enjoy the eclipse. I will crawl back under my desk and continue to add shares and watch for 2018+.. Good look to all regardless of your play here.
I added another 300k shares today. This moves me to just under 3 million. I see this as moving forward in a positive step.
good luck to all here..
It is nice to see volume come back today! I lurk here and don't post often but I am still holding a couple million shares.
Makes my wife happy to see upward movement again after the long slow drift down we were in.
#sgby long...
I read more than post here. i have a couple million shares.. holding long.. I agree would be nice to see some developments related to california market.
further support for improved margins..
There are currently zero Sgby labs in oregon certified for pesticide testing. After the equipment purchased is calibrated and certified, they can do it in house vs outsourcing to another lab. This will decrease costs for sure. In addition, there are currently only around 6 labs total in Oregon who are certified to test for pesticides, SGBY could in theory, pick up more testing for pesticides from other companies and growers who are sitting in queue now waiting for pesticide testing from existing labs.
https://public.health.oregon.gov/LaboratoryServices/EnvironmentalLaboratoryAccreditation/Documents/canna-list.pdf
CEO reply to question on high direct cost/ sales.
Kevin,
Our cost of sales are significantly higher than originally forecasted due to the higher cost of outsourcing testing of pesticides. Not sure if you recall, the Company posted an 8K a few weeks back stating it had entered into a purchase/lease agreement to acquire $450,000 in new equipment that will be used to dramatically lower our cost of sales, improving margins and profitability. This is a highly sophisticated piece of equipment and will require 6-8 weeks to optimize and receive full accreditation by ORELAP before it can be commissioned.
Also keep in mind, this was the first quarter of relatively a new business model with new testing standards in OR. We of course are looking at multiple areas of improvement to drive revenues and lower costs.
William Waldrop
CEO
Signal Bay, Inc. (OTCQB: SGBY)
702-343-7470
There were some adjustments made in Oregon on required testing amounts I believe. Might be a good place to check the PR releases from state on testing, they relaxed some testing requirements to get more product on shelves and reduce backlog.
I don't know if the changes were temporary or permanent.
I think next year, in theory, California testing market should dwarf Oregon if we can secure a big enough footprint to cover key markets in the state.
These are just my thoughts, of course, everyone should do their own research.
Not feeling suckered in yet. I am still deep in the green from initial investment. I was and am hoping to see some improvement on margins. A convenience store has a 40% markup on even candy bars.
Why would a mandatory testing company be running only 10.5% margin between price and cost for their testing? That leaves very little left for covering salaries, let alone overhead.
Will be watching the next q2 to see if improvement has been made in the margins.
If they were showing an ebita of 10.5%, I would have a bit more comfort with where they are.
No one else is asking the question or i guess feels intrigued by the numbers.
I am long on the stock. I do have some faith and several million shares of stock. I was actually quite surprised to see how low the margin was.
I was expecting to see a higher margin from the testing. We know the rate they charge per test for flower and then for subsequent tests for edibles/concentrates etc.
It will take a substantial growth rate of new labs and volume of tests for a 10.5% margin between test revenue and test cost to be able to cover the SGA..:(
I am hoping they can find ways to either increase revenue charged per test or reduce the cost to conduct the tests, thus improving the margin.
I am going out on a really thin limb here and suggest that buy the new vans for collection and the new lab equipment so they dont have to outsource the test for pesticides etc in Oregon, should help margin improvement.
Anyone else seeing this?
Kevin
Where is all this illegal transferring of funds via paypal coming from? If they haven't sold shares, then they still own equity in company. If they are using proceeds from operations to transfer out, we need to review purchase agreements with business and see what we really should expect to see kept with SGBY vs paid out to partners in the acquistion agreements. I believe at least one lab required splitting revenue for a couple of years.
Kevin
The article states the sample failed testing for pesticides done by the sgby affiliated lab, but wholesaler shipped product before test results entered in system.
SGBY Lab did correctly indicate failed sample and it was validated again by Oregon board.
If lab had passed sample and then it was flagged for failing pesticide later, that would be different animal, but they performed as they should. failed sample.
The 6 billion shares of authorized shares are also a giant red flag on that tip stock..."non binding Loi"..and eventually after 60 months can acquire...Im a newbie and that even made my mouse flinch... No super KGET pump and dump for me.
I am happy with SGBY.... real product, real customers, real business..
please share with me as well.
It would be nice to get into Southern Cal..:)
I hope ww releases Q's soon. I was able to add another 79k at .0158 a bit earlier today... getting closer to 3 mill now.
I still believe. I just added 185k to my 2m+ position.
I also agree. I struggle to believe that Spicer even knows $SGBY$$ exists...
Just a little due diligence for SGBY.
In case anyone else is wondering what tax rate SGBY falls under in Oregon and California....
Marijuana TAX *DOR * DOR <MarijuanaTAX.DOR@oregon.gov>
Jan 26 (2 days ago)
to me
There is no tax on testing; any income would be taxed, but the only marijuana tax in Oregon is on the retail sales.
Marijuana Tax Administration
Oregon Dept. of Revenue
marijuanaTAX.DOR@oregon.gov
and for California..
#SGBY California tax question answer. "California Franchise Tax Board" "If it is a registered business, it falls under same tax classification as either S-corp or C-corp. Unless the specific company is a federally recognized specialty laboratory, it is treated as a normal business"
Thus SGBY is not subject to the 20-25% special marijuana taxes. This will allow the company to keep more of the earnings for investing in expanion into the next 17 planned California labs over 2017 and 2018.