Didn't take management too long to file 2nd quarter 10Q
Excepts
'"As a holding company, we have three distinct business segments: mining, packaging technology, and food manufacturing. Gracepoint Mining, LLC will hold the Company’s mining assets, SmartPac Global, LLC will hold the SmartPac TM technology, and Sicilian Sun Ltd., LLC currently holds the food manufacturing and sales business. Changes to our internal organizational structure will include The Company ensuring all relevant assets related to the above business segments are contained in the appropriate company listed above and put the parent company as a true holding company.
Each division will be managed with a strategic focus on a combination of near term revenue, scalable revenue, and exponential valuation growth potential.
Mining:
As the mining division of the Company continues to explore options to advance all projects, in the first half of 2015, the Company has seen an increase in interest from parties exploring opportunities at both Don Roman and Picacho. In addition to equity interests, there have been interests in production tolling at the Don Roman milling facility, which could result in revenue generating opportunities. The efforts of the first quarter were carried forward into the second quarter and have resulted in formal conversations, in an effort to advance and/or monetize the Company’s holdings in Mexico.
Packaging Technology:
The packaging technology can be used for the preservation and protection of fresh fruit, vegetables, and flowers during extended periods of shipping and storage. The packaging technology, currently named SmartPac TM , is comprised of patents, trademarks and other intellectual property pertaining to systems and methods for packaging bulk quantities of fresh produce and flowers incorporating modified atmosphere packaging.
SmartPac Global has engaged the services of a global distribution and logistics expert to introduce and enlist end users to its patented SmartPac TM Systems solution. These included introductions to major destination importers, retailers and food service distributors, in both Europe and Asia. These customers predominately import high value fresh fruit and vegetables from long distances, including the U.S., Mexico, Peru, and Chile. As a result of these meetings, the Company was engaged to demonstrate the product performance by shipping asparagus, avocados, limes, and honeydew melons, in SmartPac’s, to Japan and Europe. Avocado fruit shipped to Japan was evaluated upon arrival by both the importer and The Company. The avocado fruit using SmartPac TM technology was found to have arrived in superior condition, and with increased yields when compared to cartons not packed using SmartPac TM technology. This has resulted in requests for additional shipments and preparations being made for meeting scaled demand. The Company now has the opportunity to begin SmartPac TM sales and continue to build out sales channels.
With these demonstrations, The Company has confirmed that the market demands an effective "per carton" solution that enables the retailer to capture and eliminate the costs associated with transportation and spoilage generated in their fruit and vegetable supply chains. As a result, in addition to seeking to fulfill current market requests and developing custom packaging, the Company is currently expanding its global dynamic demonstrations.
Lastly, the Company is in negotiations with a number of parties for regional strategic alignments that would incorporate use of the SmartPac TM technology.
Food Manufacturing:
In early 2015, the Company negotiated the acquisition of Sicilian Sun Ltd., LLC (“SSL”) and its foreign subsidiary. In the second quarter, SSL began production at the new facility in Catania, Italy, and in the month of July, began shipping product to the US to fulfill orders for a major grocer consisting of thousands of stores throughout the US. Based on the initial stocking order and customer projections, sales estimates by the end of the year could have the potential to reach run rate of $5 million per quarter.
The Company has begun improving and expanding on the supply chain relationships, banking relationships, and customer relationships. The involvement with new and existing customer relationships has already yielded increased interest from customers globally. There will be an on-going focus to improve efficiencies empowering better service to customers, as well as improve margins.
Firma Holdings does not know of any trends, events or uncertainties that have had, or are reasonably expected to have, a material impact on its sales, revenues or income from continuing operations, or liquidity and capital resources.
Firma Holdings’ future plans will be dependent upon the amount of capital available to Firma Holdings, the amount of cash provided by its operations, and the extent to which Firma Holdings is able to have joint venture partners pay the costs of exploring and developing its mining properties.
Firma Holdings do not have any other commitments or arrangements for any person to provide Firma Holdings with any additional capital. If additional financing is not available when needed, Firma Holdings may continue to operate in its present mode
In March and April 2015, the Company sold 2,475,000 units in a private offering for $495,000 in cash, or $0.20 per unit. These shares were issued in June 2015.
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