Greene Concepts Inc (INKW)

[Tris]

Whoa! Why are some of you freaking out about the numbers in this report? What were you expecting in a report that only includes financials up to 31st Jan... this company had barely began marketing its product at that point. This is a start up company and we cant expect them to be profitable yet. There are hundreds of companies on the big boards with huge market Caps that have never made a penny in revenue and huge debt but investors know the potential is there.

Ive read the report in detail several times, and there are a few disapointing things which i will get to but there are some very positive things too:

1 - The Company is making revenue. The gross profit is very good (77%) meaning that in this period for every $1 revenue that comes in for a Freein4life product, it only cost the company 23c to manufacture. They report that as the number of products sold increases, they hope to reduce the cost of goods even further.

2 - The running costs of the company at present are small. Their facility that reportedly can produce 12million units a year had already been set up by Dec 8th (http://www.accubrite.com/6._LKEN_INK_LABORATORY_HQ_12.8.2010.pdf) and so I believe we can expect running costs to stay small even as they start producing and selling more items.

3 - The shares that were newly issued have all been used to pay off debt. Its also a very positive sign that Lenny himself accepted shares at 0.0012 a share as payment for $240,000 which the company owes him. He wouldnt accept shares as payment if he thought they would be worthless. He believes that they will increase in value or there is no way he would take shares as payment for a cash debt. The payment of these debts should mean lower interest payments ongoing, and therefore even lower running costs for the business.

4 - Their Balance sheet shows that as of jan 31st they had inventory in stock (ie product) valued at $252,946. We dont know how much of that has been sold since then, but they clearly produced it believing they can sell it.

5 - Balance Sheet also shows at jan 31st they had Accounts Receivable of $27,930 (ie money owed to them by customers) - this can only mean partner companies as individual buyers pay cash up front). This shows their product is indeed being bought by entities other than individuals.

6 - Balance sheet shows start up costs of $1,006,942. This is matter of opinion but i believe that the majority of start up has been paid for by jan 31st and the business is in a position now to not have to spend more money to be able to sell their product and that costs to grow the business from this point onwards will not be significant.

The above things, and the financials reported in general, show me a company that is just getting started and positioning itself so that it can sell its product effectively in large numbers. At this point we dont know how much product has been sold since Jan 31st and now. What we do know is that they are manufacturing it in significant amounts. The question...as has always been... is can they get enough people to buy their product. If they can, its clear that the profit margins are huge.

Ok.....

So the not so great things.

1 - Riteaid. Its understandable that sometimes things go wrong in product negotiations and I do believe the story. However, they have known about this since Dec 23rd. Many posters have said the the IR has told them they are "contractually obligated" not to speak of it. If this is true then why can they publicly release it in a financial report, and with who was this contractual obligation agreed? Not cool.

2 - Delays in the infomercials and DRTV campaign. I believe that the infomercials, and moreso the DRTV, will provide LKEN with the revenue it needs to get into profit and grow its business. We see from the financials that even a very modest success rate in DRTV sales would make for huge profits and take this company right into a position where it can be debt free very quickly and then grow. They should be getting DRTV out there ASAP and they should be giving us reasons for the delay.

All in all my take on it is that the financials are fine.....in fact in a lot of ways the financials are good. In terms of finances this company is right where it should be and they have created and infrastructure that can support their intentions of selling lots of product. The delays arent good. All boils down to do you believe that they can get their product out there and selling. I believe they are trying to do that, and the financials and inventory show that.

I also know that a lot of people here are impatient and greedy and will bail out because they didnt see huge $$$ flash up in this report. I'm staying in 100% because I know this thing is gonna rocket in the...... wait for it.... NEAR FUTURE :P