Expo Holdings Inc. (EXPH)

[nkob1974]

Highlights of the 28th july conference call. This is a collection of the DD i found on this board so it is easier for me and others interested to know what important things have been mentioned, please feel free to make adjustments or to add points that i missed.

1. EXPH has only tapped into the credit line borrowing just $150k! (and that is at prime +1-low low interest rate!)

2. JD said revs could likely be $100 Million/year from the new proprietary product (and he also said that was from US sales alone and from only one retailer)!! Shipping to begin in about 60 days or less!)

3. JD said not one share of insider shares(that were converted from preferred to common) have been sold. (great long term belief in the company and contracts).

4. 10 000 shipment to major retailer will soon be unveiled once the shipments commence.

5. Recurring revenues!!! JD mentioned 5 year Lowes deal alone!

6. Company to expand to possibly 100 workers by end of year (depending on amount of growth).

7. Present landlord has another 100 000 square foot facility for exph to expand into!

8. JD was extremely conservative.

9. Although no plans to buyback shares due to extreme! growth expected with proprietary pruduct, JD didn't rule out a future buyback.

10. The new product is being patended (timeframe the ceo said 'moments' not next week, next month, but moments!!!)

11. Profit margins on the new product that is being patended will be much higher than the ones already in production.

12. To questions asked referring to Walmart and CVS the ceo said: 'no comment', probably because of a disclosure agreement, so probably we can 'assume' he's got them or it's in the works.

13. About the equipment: a lot is already owned and paid for, some of the machines are leased with a dollar buy back, however the lease is nearing a close in the coming months. The lease costs of those mahines equates to a mojor portion of the overhead costs. Therefore, when the lease is up and they take ownership, the overhead costs will be reduced DRAMATICALLY. This wil allow for greater profit margins on all of the orders!!!
At the end of the 3rd Quarter or the beginning of the 4th Quarter the company will begin seeing the benefits of those lower overhead costs!

14. The new consumer product will begin production and distribution between 90-120 days!! JD stated that the news will come out within the next couple of weeks.