Inergetics Inc (fka NRTI)

[crookedneck]

My discussion summary with our CEO, Michael James!

Let me start by saying Mr. James is very pleased what they have been able to accomplish in such a short time span. Last year at this time the company had very little sales and now they have a multitude of revenue flowing in from different sources and the expansion into the Hemp Oil-Based Nutritional Supplements will be another great addition to their revenue source. Needless to say he is also very excited about how they continue to expand, with products in over 10,000 retail locations and growing.

Distribution
The NEWEST & BIGGEST development was this: Our products are currently available in the United States and internationally through PriceSmart membership warehouse clubs in Central America and the Caribbean. We continue to expand our marketing presence in an effort to increase our distribution in developed and emerging markets to our consumers throughout the world. With the huge addition of Price Smart, they still have many more distribution opportunities that they will continually add this year. Mr. James said it's a process and sometimes they can take longer than expected, but they are continuing to follow up with each and every opportunity. They have another retail show coming up later this year in Florida where they will be following up with more retail chains to continue their expansion. He was most excited about the addition of Price Smart, which he believes will bring in a lot of sales.


Hemp Oil-Based Nutritional Supplements
He is also excited about the new partnership with Terra Tech(TRTC) and what the potential it has to become the market leader in the Hemp Oil supplement category with a proven product that will live up to and deliver what it will claim on its label. In other words they are looking to going to market with a proven product that will be created with the help of some of the top leaders in the field of the MJ industry. They are taking the time and expense to develop the very best Hemp Oil-Based Nutritional Supplements, by utilizing and assembling some of the top physicians who have worked and studied extensively in this field. This newly created Scientific/Medical Advisory Board is the first of its kind and is all designed around creating an end product that will deliver and perform, as labeled. As far as what type of indications they will attempt to develop a supplement around, he said it is too early to tell yet, as this is what the Board was created for and what they are working on right now. They will however, only concentrate on developing supplements based on the oil and not the THC, which will be highly regulated by the FDA. This will allow them the ability to get to market quickly and start selling their supplements without the huge interference delays from the FDA process. He said it's all about getting a quality product to market at the fastest timing possible to bring in revenue. He told me that as things develop announcements will be made and that shareholders can be assured that they will be kept up to date through numerous announcements along the way. When I asked him about the partnership and how that is setup between the two parties in terms of expenses and revenue, he stated that this has not yet been disclosed and assured me that it was a mutual and beneficial agreement that is in the best interest of both parties. He feels very good about the partnership deal and thinks it will be very beneficial for both companies and their shareholders in the end.


Authorized Share Count & Uplisting to QX Exchange
I asked Mr. James again about reducing the authorized share count and he came out and said that though it is something he will look into down the road it is very low on his list of priorities right now. I went into how I felt it was possibly creating a negative view point for new investors with their concerns about such a high Authorized share count that left the door open for big dilution down the road. He replied by saying, though it may affect a few at first glance, those who take the time to really look into what the company is doing and our operating principals, they would quickly see this is not a concern. He went on to say that though this is something he still intends on looking into, he has way more pressing issues that take precedence over this, like increasing revenue! I understood his viewpoint and we both agreed to continue this discussion into the future.

Now where I did get his full attention is when I mentioned my suggestion about them uplisting to the QX from the QB. This was something he said he should really look into, as it requires a more complete disclosure, which they are already doing. Not only that but it is another step in an upward move in preparation for a bigger uplisting down the road when the time was right. He said he would look into it and see what was all involved to get it done. It would also help separate the company further from the so many shady companies in the overall OTC Markets.


Surgex, Martha Stewart Essentials, Bikini Ready, Slim Trim, & Intrinsix
Mr. James is very pleased with all the brands and the expansion and development of each brand and had this to say about each of the brands specifically.

Surgex continues to be a great brand for mostly the 18 - 35 year old male segment and being the preferred nutritional supplement of Army Sports, and the recently reformulated new line of products, Surgex® Warrior is doing very well!

Martha Stewart Essentials continues to expand and appeals well to the over 40 women population who are looking for a more natural supplement that will improve their everyday lives. The brand continues to expand and the addition of Price Smart will be a big boost for additional sales. Martha still has a huge appeal for the aging women population and is a great testament of how to grow old gracefully.

Bikini Ready is a new brand that appeals to the younger women that has a lot of potential and beginning to gain ground. They have a great spokeswoman with Anastasia Ashley, the pro surfer, whom he recently met and was very impressed with. There is a big competition coming up this summer and NRTI will have a tent up promoting Bikini Ready and being one of the sponsors of the event. Ads are now coming out in various women magazine publications that are bringing further awareness to the brand.

Slim Trim is the other new brand NRTI acquired last year with Bikini Ready and also appeals to the younger women crowd of the 18 - 35 age group. They will continue to increase distribution and awareness through advertising, though not as heavily as the Bikini Ready Brand.

Intrinsix is a no-brainer brand that NRTI created as a specialty supplement to Support Healthy Nerve Function and Foot Health and is being sold and promoted through a direct approach with The PodiaTree Company directly to over 15,000 Podiatrist offices across the US. It was a nice deal where NRTI just has to manufacture it and collect their dollars without having to promote or sell it.


In Closing
Let just say that I never fail to get more and more impressed with this company and it's management team, led by Mr. James! They just are an amazing bunch who know how to get things done and make things happen to bring in additional revenue sources from the right places. They have already established themselves as one of the more elite supplement manufacturer's and distributor's in the country. The commitment of not utilizing dilution as the tool to grow and a support the company is as refreshing as it gets. If that weren't enough, they have taken all the necessary steps to distant them from all those other OTC companies who use paid pumps to sell shares and dilute their shareholders. They hired a reputable worldwide PR firm to represent them, RL Finsbury. This is only the beginning for this company as they are now undertaking all the correct steps to become the very best in this new category of the Hemp Oil-Based Nutritional Supplements. They are not rushing in to just get a product out, they are methodically creating the best in class product that will promise to live up to what it will claim on the label. They assembled the best in the field to ensure this! Sure we see other MJ companies coming out of the woodwork soaring up in the short term, but where will most of them be in a few weeks? NRTI & TRTC will be the ones who will not only survive, but they will flourish! I remain totally impressed and I remain a long term investor!

NRTI Chart
This is a healthy pullback to their 50 day moving average area, which is providing a solid support area. With updates ahead about their developments with their Hemp supplement progress and their HISTORIC earning event only about a month away, the stock is ready to start moving back up. I leave you with one last thought - Mid May when they report 1st Qtr Earnings, be ready for the most amazing results ever seen! I don't think this, I KNOW THIS! Why? Because I follow this company closely and I know what they had to defer to the 1st qtr and a good idea what sales will be. Be ready to be SHOCKED! You won't find a better company to invest in down here! Cheers!


Cheers