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Sunday, 08/22/2010 11:52:40 AM

Sunday, August 22, 2010 11:52:40 AM

Post# of 154387
THE BOTTOM LINE

- We have a good amount of inventory on hand, and more being produced in the immediate future.. enough that, once the product hits shelves, we've got our next production runs financed IN HOUSE.

- We are profitable and have healthy profit margins on our products. Currently 63.2% (based on the last quarterly that stated $10,529 in sales, $3,964 in cost of goods sold and a gross profit margin of $6,656). If you apply that to the 290k inventory we have on hand, we'll be turning that $290k into $473,280. Even better news: as we produce more and more, production cost is likely to decrease per unit... our margins will only get better with time.

- The OS is significantly lower than expected. Some thought it was maxed out (4.7B), and others guessed 3.3B on the low end. It beat the low-end estimates by 18%. A 2.7B OS is great news for us--we own a bigger piece of the pie than we thought.

- ALSO RE: the OS, some posters floated the idea that the company could have increased the OS between 6/30 (the end of the fin. period for which we just got our quarterly) and 7/12 (when they PR'd no further increase), but the stock price increased over that time period on good volume. Google Chart

- We have an outstanding group in management, legitimate companies working on distribution, etc. I have talked with representatives at Elmira, our east coast distributor, who indicated that he was excited and ready to rock and roll.

Basically, things are going GREAT here. The next week or two between the sharp quarterly statement we got on Friday and the fact that product will be on shelves ANY DAY NOW are going to be very exciting for the shareholders here.

I'm looking forward to taking this ride with all of you... good luck to all.