SMKC in a nutshell........
From 10q 2020:
Model-
to onboard new dropshipping partners, as well as expanding the product offerings from the existing dropshippers(sounds like Amazon without inventory).
Revenue-
"The primary cause for this(revenue) increase was a change in our business model that relies on most of our products being delivered directly from third-party dropshipping partners. This models allowed us to offer a wider offerings of products as well as avoiding out-of-stock notices as we were unable to replenish our own inventory during 2019 due to financial constraints.
The Company expects to continue to onboard new dropshipping partners, as well as expanding the product offerings from the existing dropshippers. If customers continue to come to our website and purchase a wide variety of product offerings, we expect our revenue growth to continue."
Cost-
"The decrease in gross profit margin is attributable to the expanded dropshipping model used by the Company. The Company expects that the lower gross profit margin will continue at this level, and the overall gross profit will increase as revenues increase due to the broader product offerings being sold to our customer base."
Expenses-
"Management expects to maintain these lower operating expenses during 2020 until such time as its revenue growth requires further investments in staffing to support the growth."
The interim CEO seems to know exactly what he is doing and it has worked last q.Will the progress continues in q2?That is the million dollar question,I believe it is highly likely as the transformation take holds.
AI
