Glucose Health Inc. (GLUC)

[NewJerichoMan]

1,795 isn't 1,800.

Just kidding.

Over its replenishment cycle product revenues will exceed $400,000 and further, GLUC has reported NET INCOME (not just revenues and cash flow but NET INCOME).

Over the TTM, the actual reported revenue is ~$66K. Divide that by 1,800 and it equals $37 per door. That suggested to me, no way GLUC is in 1,800 stores. But I think I understand what you're saying ($400K versus $66K). I'm aware of the revenue from the first half of 2016, as well as that in the coming quarters.

GLUC has reported NET INCOME (not just revenues and cash flow but NET INCOME).

I think explains the "lumpiness" in the COGS, and why it was so low in most recent quarter.




Build 100 widgets, sell for $1 apiece, potential gross equals $100. COGS = $90. Once break-even point is achieved, the sale of the 90th widget, it's all gravy after that. But the gravy doesn't really start to flow until the end of the cycle.


LAST GO-AROUND - LAST COMMERCIAL
The Hallmark commercial produced $400K in revenue (big round number for illustration's sake). The cost to create that $400K wave of revenue was something less than $400K. Call it $360K for easy math, imputes 10% net profit margin.

The CNBC / Shark Tank commercial will be a bigger "wave". Last wave a success. Keep scaling. Let's double for easy math: $800K revenue. Still making numbers up, cost to produce this bigger wave is $680K, producing net profit of $120K or 15% net profit margin (benefits of scale).

In the end, this wave should produce a similar COGS pattern as before. The largest portion of the net profit doesn't drop to the bottom line until the end of the cycle, and only if it's a success.