SK3 Group Inc. (SKTO)

[RealReese]

Curious I-Glow... You mention that the 50 acres can't be real because the States would shut them down but also mention in the same post the other "average collectives" are not making enough so that can't afford to pay them...

Question... Why is it in your opinion that these other "average collectives" can grow and sell without being shut down but SKTO couldn't possibly do it?


That Said, I have some concerns about the contracts as well...Maybe my math is really wrong but I tend to lean with I-Glow on this part.

Some average Costs:

1/8 oz = $30 - $65 depending on where you get it.
So average about $55 1/8oz overall.

1 ounce = $55 x 8 = $440 wk per person

At those numbers:
1 oz a week @ $440 x 500 people week (at that proposed low end) = $220K WK x 52 WK = $11.44 Mil yr (before expenses and owners draw)


With 100 customers a day... small office (2K sq ft, electricity, etc)... 2 employees @ $20/hr... About 15K in expenses a month x 12 months = 180K

Cost of goods sold per year (assumes $5,000 per pound wholesale) x 31.5 LBS week = $157.5K wk x 52 weeks = $8.19 Mil

That's 11.4 Mil a year - $180K Expenses - $8.19 Mil cost of goods sold = 3.03 Mil.

That is before TAXES and the Owners Draw

Granted I am making a lot of assumptions but these are NOT outlandish numbers... 500 people a week at 1 oz per week = MILLIONS in gross revenue yes, but then all the cuts and we are much lower.

They need to explain this a bit better. Maybe at 2K people a week you could afford it but not these small collectives.