I'll also recap on what I heard...
1. Sales increased 64.4% on a quarter over quarter basis while not drawing against any financing other than the required cash to complete the Olifant deal. St. George (St. Charles?) provided $575,000 to complete the Olifant deal.
2. "We have turned the corner." "Best position we have ever been in as a company."
3. "Break even results on EPS within the next 9 months." "We expect revenue to appreciate substantially."
4. SG&A is seeing a sizable drawdown of between 40%-60% going forward as this last quarter saw a higher SG&A than the company expected due to the costs associated with the Blazed and Confused Tour.
5. The company will begin drawing on the cash from St. George (St. Charles?) in January at $230K per month and as such company will not need to issue any further shares to pay vendors and will have enough cash to completely replenish all inventories of core brands outside of Badass Beer. This influx of cash will fund ALL their key initiatives for 2010. "We have access to all the cash we will ever need."
6. The company has not drawn on any of the Line of Credit and does not anticipate doing so unless an opportunity presents itself to further expand the company beyond its business plan.
7. CEO did touch briefly on the penalty shares and did not disclose how they were able to be triggered. He also stated that the selling of late was not likely attributed to those shares hitting the market. St. George (St. Charles?) is a shareholder and stakeholder in Drinks. If they have sold any shares he estimated it could not be more than a couple hundred K shares.
8. Olifant is growing at 50% in current markets. 8 new markets have been added and product is shipping to those locations. 50000 cases of Olifant this year and 100000 cases for next year.
9. $82000 sits on deposit for the Israel deal. Company to begin next week positioning itself for those shipments to begin in January. 60000 cases annual of Trump Vodka in the deal. $7 million in annual sales from this deal.
10. Referred to the business as "THE SET OF BILLION DOLLAR BRANDS WE OWN."
11. Liquor Group counter suit in progress. Company will not try the case in the blogs. Suffice it to say "We ONLY do business with paying customers." Our sales drawdown was due in part to no longer providing product to the Liquor Group. That channel of distribution of our core products has been replaced with new distributors.
12. "Our beer initiative is surpassing all our expectations." Just for August, the company booked $75000 in Badass sales on 1100 kegs from FOUR distributors. (Remember, less than 100 tap handles were in the marketplace in mid August). Company now has more than 300 tap handles in the MI market. (From here, you could assume the company is doing $225K a month currently in Badass sales.) When fully rolled out, MI will have 20 distributors generating over $20 mil a year in sales.
13. Company expects Badass will be generating easily over $20 million in sales, or more than 2% market share just in MI in the coming years.
14. Bottles (22 oz.) are ready to go. Waiting on Kid to approve some label changes.
15. Going to focus heavily on MI and Kid's presence there to saturate the market so as to draw on that success before applying all efforts to other states.
16. Rheingold is an iconic brand just by the name. Rheingold will be re-introduced after the first of the year.
17. The websites for Drinks and AmericanBadass Beer will be up shortly. Drinks' website will be loaded with flash and totally interactive.
18. A Shareholder in Drinks has put together a comprehensive Google Map of every Badass Beer location in the US that will be interactive to include retail locations, retail website info, beer specials, special events, and distributor locations. The company will PR the map when it is completed. (I'm assuming then it will be included on both websites.
19. Badass Beer, like all the license deals with Drinks, is a deal in perpetuity. However, the company has the option to renew in five years.
20. Backorders are shipping and inventories are being replenished.
