Reviewed the financials for Barista's as they included full year operation results for Munchie Magic.
Our Munchie Magic subsidiary began generating revenues in April 2020. For the 12-
month period ended March 31, 2021, Munchie Magic generated approximately $144,000 of revenues and
approximately $40,000 of gross margin. We are optimistic about the growth of this business.
Revenues
We generated revenues of $19,896 in the first three months of our Munchie Magic business. We
generated total revenues from operations of $22,557 and $3,102 for the three-months ended June 30, 2020 and
2019, respectively. The increase of $19,455 is attributable to our new Munchie Magic business for the threemonths ended June 30, 2020.
Gross Margins. Once cost of revenues are considered, we reported gross margins of $10,290 and $2,218 for the
three-months ended June 30, 2020 2019, respectively. The increase is attributable to our Magic Munchie
subsidiary.
Operating Expenses.
Our operating expenses were $63,925 and $69,696 for the three-months ended June 30,
2020 and 2019, respectively. The decrease of $5,771 was attributable to an approximate $41,000 decrease in
stock-based compensation for our CEO and others and an approximate $4,000 decrease in depreciation and
amortization as related assets were completely depreciated or amortized in May 2020, offset by an approximate
$39,000 increase for consulting fees, professional fees and other general and administrative expense from our
new Munchie Magic business.
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Think of Munchie magic as a Grub Hub of sorts. Whatever is ordered from the convenience store is booked as total revenue but of course MM doesn't get to keep all the revenue. They must share it with the stores that actually provided the product. The stores amount is the COGS (cost of colds sold). So really the operating margin is how much revenue MM gets to keep then you would start subtracting expenses.
If MM did $144K of revenue for 12 months, they kept only $40K and the rest went to their convenience store partners. So MM gets about a 28% cut of each sale before expenses.
To put it into further context, $12K/month total sales and $3300/month is kept by MM. Average store count maybe around 30 (they have 50+ now) so that translates to $400/sales per store per day with $110 per day sales going to MM. Remember this also includes a couple month worth of beer, wine, and hard alcohol.
In all, BCCI created 40 PR's to pump it's new MM operations. 40 PR's results in $40K in sales the MM gets to keep over the course of their first year in operation.
Also BCCI only owns 52% of MM. The rest of the shares are owned by note holders.
BCCI coffee sale for this quarter just released was $2661. Doesn't quite jive with PR's.
The question is if MM will thrive post COVID are die slowly. It's likely an idea or a platform that can be sold to another company IMO but for how much is unknown.
