Branded Legacy Inc (BLEG)

[sleekscape]

Excellent profit margins, balamidas

66% is really fantastic at this stage in the game

With larger production runs of CBD Beverages over time, production prices will fall and profit margins should rise even further

It also looks like VATE will be cash flow positive in Q3, which should decrease any dilution necessary to find operations moving forward

I’ve seen some remark that they expected the revenues to be higher due to Q2 being the first quarter where CBD Beverage revenue hit the books

But the CBD Coffee didn’t launch until May and the CBD Iced Tea launched in June, so most of the revenues from the first production run of 60,000 units got pushed into Q3

VATE now has over 20 distributors, but only 4 distributors received product during Q2

So 80% of the CBD Beverage revenue to date will fall in Q3

Subtract out the O2 Breathe revenue because they went their separate ways at the end of Q1 and the Q2 revenues are in line with what I expected

I’m expecting a huge jump in Q3 revenues due to the fact that this will be the first full quarter of CBD Beverage revenue and VATE’s distribution network is now 5X larger than it was in Q2 and we still have 45 days remaining in this quarter

So Q3 is when we will get a much better sense of VATE’s revenue stemming from their new CBD Beverages, as they are on track for 25-30 distributors by the end of Q3 — VATE only signed 4 distributors in Q2— so you can multiply their Q2 CBD Beverage revenue by 6X-7X to calculate the expected CBD Beverage revenue in Q3


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