Marani Brands Inc. (MRIB)

[Matthew Berg]

Hm. What are the sales for fiscal? You don't know. How about next quarter? Nope still dont. Your going off of 9 days selling.

For the fiscal year we don't now because we don't have their Q4 numbers. But, we do know through the three previous quarters total of gross sales was $2,500. The company reported little to no sales activity for that final quarter right up until the Costco placement which took place on the 6th of June or thereabouts IIRC. What comes down to how much they sold in 26 days at Costco in June? The initial order was for four cases per store and reorders were not reported until after the close of that final quarter so what it really comes down to is how many of those 312 bottles (52 cases) were sold. If they sold all of it which is highly doubtful but what the heck, you could make a very accurate call on the sales estimate erring to the high side of roughly $4,250 for their 4th quarter and $6,750 total in gross sales for their fiscal year before expenses. Doesn't appear it can possibly be more than that mathematically.

As for the next quarter, that's also easy to estimate, again erring to the high side, because the quarter is near close and we know how much product is available for potential sale. Again we have to depend on Costco for pretty much all product sales because that's pretty much all they had and still have.

We have to go on cases here because we don't know how many .75L bottles were in the shipment but the case cost and ultimate margins shouldn't be of any significant difference plus we know that Costco only sells the 1L bottles. So, assuming the sales through June 2014 at 52 cases, that leaves Marani with roughly 1,400 cases of inventory to sell from end of June through the end of September. Gross margin value on 100% sell though of that inventory in those three month would be a max of $115,000 not taking into account the significant discount now on the product. Regardless, we'll be generous and give them the $28 per.

So, you can very accurately forecast maximum revenues at $115,000 for the quarter through September 30 2014, the first quarter of their fiscal year. Here's the rub. Their expenses run close to if not over $200,000 a month. So it looks like their 1st quarter of their next fiscal year will be about as horrific as what we will see in a couple of weeks with the year end. And keep in mind, we're assuming they sold out everything they had in stock and inventory and got paid in full in the last 90 days. Pretty tall order. Bottom line is that those numbers are undeniable. There is no mystery revenue stream other than stock sales but that's not vodka sales. Any other revenue outside of these max values is only fabrication and pipe dream.