American Green Inc (ERBB)

[nopancakemix]

That "Analysis" is Waaaaaaay Off
Those estimates only factored in the leasing fees for the Zazzz machine, not licensing fees or revenue sharing from sales via Zazzz. Completely absent are the Jurassic Water Systems which already have a $1.17m preorder. Also forgotten are OneBode, USE! and ERBB partnership to establish a growop/dispensary in Colorado. There is also a complete lack of future revenue from Zazzz vapor pens or newly expanding product offerings on the website. I'm not saying T-shirts are going to bring ERBBs market cap into the billions but the company is rapidly offering new products.

But most important, that financial breakdown of of Zazzz revenues is flawed.
Stephen stated the Zazzz lease is relatively inexpensive. I think the $100/month was what Shearin stated so the $1200/year leasing fee is correct but you didn't include the yet to be disclosed revenues from products sold in a Zazzz machine. Those revenues could be a significant percentage of sales at dispensaries via Zazzz machines. A popular dispensary in California can make over $1m in a single month with the largest making around $2m a month. Just 1% of that $2m from a dispensary is $20k per month on a single machine.

ERBBs goal is 1000 machines. While that may not happen in a single year, even with a conservative estimate of $5,000/month per 1000 Zazzz machines, that's nearly $5,000,000 a month and $60,000,000 per year. With as many as 35 states with MMJ legality by November 2014 elections and nearly 1500 dispensaries in CA alone that $60m estimate could be vastly understated.

And once again, the Zazzz machines are merely just a single facet of ERBB/American Green's business. OneBode products may be offered in Zazzz machines giving sales a boost. Jurassic H2O products may transcend the MJ industry and could be applied to other agricultural products. The American Green vapor pens are another source of interest as are the partnerships in Colorado.

But then there are the intangibles.....a partnership with Dixie Elixirs considering they had a recent break up with another MJ company?

$400-800/month is almost laughable for future revenue forecasts