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Just in my opinion, the concept of break-even is a bad metric here. The real questions go something like this:
On the tech side...
First, can Citizen Toke generate repeatable income within its test markets (Denver/Boulder)? Yes
Second, can Citizen Toke deploy the same concept in more markets where weed is legalized? Yes
Third, can this technology be applied to other verticals outside of MMJ? Yes
Finally, is this technology competitive with other competing channels for users and paying customers (dispensaries for MMJ)? Simplicity and availability are huge. ANY dispensary and ANY consumer can have access to this.
On the market side...
Is the market Citizen Toke competing in large and sustainable in the long term? ($4 Billion for MMJ in 2016 and expected to continue growing, while marketing makes up between 1 and 5% of that market -> between 40 and 200 million annually) I would say yes to this.
Is that market growing or shrinking? More states are legalizing recreational MMJ, but fed crackdown (or maybe even full legalization) looms. Growing for now... with a large timeline towards any federal step in.
Is the company able to pivot to other verticals if necessary? (This tech seems deployable in other markets although making those connections could be difficult - alcohol for example)
Management side...
Is the current team capable of recognizing multiple opportunities and pursuing the best ones? (They are focused on one single product and appear to be making traction)
Is the team capable of recognizing its own weaknesses and filling the gaps and cutting the fat? (Patrick cut salary significantly and has made headway with Citizen toke + Tew cut a LOT of fat from previous overhead expenses like the office/management/employees/products/debt to focus on one single product with very low overhead.)
What about the BetaKillers team and how they integrate with Cannasys? They have deployed multiple moderately successful SMS marketing platforms before entirely on their own. Citizen Toke seems to be an iteration on previous platforms. They definitely seem to be the biggest asset to CannaSys right now in terms of strategy for deployment and far reaching tech vision.
Financial side...
Is the business model capable of generating a profit based on COGS and revenues? (SMS is incredibly high margin)
What type of timeline is needed to pull the company out of debt? (500K in debt?)
Does the company have access to capital to see this all the way through? (Kodiak for $3MM)
As the technology scales, will COGS go up or down? (I assume down since this is a web app).
While the PPS has been absolutely abysmal, the ingredients I've stated above have definitely improved for the at least makings of a quality and successful company + investment. Guess we will see how good the team is at putting these ingredients together.
My guess would be that Burke had a lot of say in his salary but still opted to go significantly lower than the previous CEO to really show a commitment (at least financially) to getting a product to market. Good signs here.
You can't know what the break even is until you know how much revenue you can get from a dispensary. I haven't seen that info.
Burn rate is cash flow. Just go look at the cash flow statement on the latest s1. They went through 457K in 2016. So call it 40K a month.
No idea. When were they announced again? Like a month ago?
STROKER is right on. The CT tech is something that won't be kept exclusively in the MMJ industry, either. Instant localized, gamified deals to move a customer to action in a short response time is tremendously valuable. MMJ marketing is so bogged down by restrictions that it made the industry an ideal proving ground for the tech. Even a minimal success can allow the tech to expand to other verticals quickly.
So it isn't just MMJ that is watching this tech. Alcohol is one that comes to mind.
Learn how to do accounting... particularly with how convertible notes are accounted for.
Burn rate of 200K plus isn't true. Significantly lower than that.
Read the S1 again. They have a 30% discount.
Wouldn't 0.01 PPS be a market cap of $11MM?
If you Google Citizen Toke and look for new pages in the past week, these two started showing up. Not sure what it means yet.
http://www.livwell.com/ct-plat/
http://www.livwell.com/ct-pre-roll/
I emailed Patrick about that issue with the releases not getting onto larger platforms. The IR service they use is obviously not the best. He said that they are exploring other options because they realize the issue.
You called the numbers on the most recent press release?
Why don't you call around to the dispensaries and partners listed and ask their opinion on the tech? Or just call MJTK straight up. They listed patrick's number and email, and he's been responsive.
From what it sounds like, CT got deprioritized with the AFN deal... and now it's become THE priority again.
What they are doing is pretty smart. Since they can't launch with thousands of users and dispensaries immediately using the product, they are allowing a select number of dispensaries to join to get everything perfect before a full release. Getting around the chicken-egg paradox of users v paying customers as an intermediary marketing platform is not an easy task, and it sounds like these guys are taking the right steps here.
Well... the website was down for a bit, but it's back now. They probably just had to do some updates on the backend of the site or something.
hahah good point
You might want to do some due diligence. Check Patrick's LinkedIn. He was in Pennsylvania the past 2 years getting his MBA...
In a word: optimism. Obviously, he can't share anything that isn't already public. But it was nice to finally get someone at CannaSys on the phone.
I talked to Patrick Burke.
All I know is that the new number on the website is live. I called it yesterday and actually talked to someone.
Google takes time to update things like this, not instantaneous.
Feel free to keep making jokes, but maybe try calling the number instead.
Their website has a new number posted on it. At the bottom footer: 720.724.7515
Worked for me.
Nope.
On the website, they posted a new phone number for contact. It's above the 1800 number and it works. Yes, you actually talk to someone.