Inergetics Inc (fka NRTI)

[crookedneck]

I just spoke w/Mr. James to get clarification. He said he may have over simplified what he told me and that in essence they DO NOT have to pay back the amount they received from NJEDA program that will net them $5 million dollars to date, after this latest amount of $3 million net is processed in January 2014. Last year they netted $2 million from this program.

You were correct in that they will have to pay taxes (at the rate of 9%) once they become profitable, without the ability to use any tax right offs. This is what he meant when he mentioned that they would have to pay back this tax when they started to turn a profit. In essence it is in a way paying back what they got from this program, as they will not be able to use these tax write offs they used now to get these funds. Like I said before, it was just a simplified way that Mr. James used to make it easy for everyone to understand, but now after all this, has explained it in detail.

As far as calling it a tax credit or a tax certificate transfer, it really doesn't matter, since it really is the combination of both after the transaction is completed. I think it is safe to assume that you can call either one or both, but it is a very minor issue in the end. So as you can now see, this whole issue was merely a matter of over simplifying the program for everyone to get it without the need to spend a bunch of time explaining it in detail. In the end your explanation of how it worked was correct, but as to what we call it, be it a tax transfer program or tax credit, it doesn't really matter and neither will confuse anyone if you keep it simple, which is what Mr. James was trying to do.

In the end this is all that really matters: The company will have received a total of $5 Million Net dollars these last 2 years by the end of January 2014 by taking advantage of the NJEDA project that provided unprofitable companies an option to receive cash for the tax incentives provided by the state for those companies who moved to this district. Thus regardless of what anyone calls it, we need to focus more on what it means for the company and its shareholders, which $3 million dollars net in Jan 2014, for NRTI to work with that is totally non-dilutive to shareholders. This should put this to rest once and for all now. Cheers!

Moving on:

I wanted to alert everyone to the fact that Inergetics will once again be attending the ECRM show this year and are listed as one of the vendors under the "Sellers" tab. Here is the link to get to it: http://www.ecrm.marketgate.com/Events/Event.aspx?s=3204&sec=4&r=S. This is a great event to expand distribution for all the brands as it is attended by the vast majority of retail chains and independent stores across the US.

The Vitamin, Diet & Sports Nutrition EPPS
Held on Jan 12, 2014 - Jan 15, 2014 at Hyatt Regency O'Hare in Rosemont , IL, United States
Vitamin, Diet, Nutrition and Adult Nutrition suppliers will present new programs to retailers across all channels.

ECRM Overview
ECRM® provides business solutions by integrating process, vision and technology. Comprised of Efficient Program Planning Sessions, a powerful website, and MarketGate Application Suite™ software, ECRM® is helping buyers and manufacturers improve sales, reduce expenses and go to market faster and more efficiently.

Since 1994, ECRM has hosted events around the world with participation from thousands of retailers and manufacturers of all sizes.

ECRM's internet-based software, MarketGate Application Suite™ is composed of powerful tools that can be used for EPPS® preparation, during the event and for meeting follow-up. Tools can also be used throughout the year to assist with the marketing and selling of products. MarketGate™ features include: Contact Manager, Scorecard Manager, Product Catalogue, and Event Manager.

EPPS Events
EPPS category-specific events consist of one-on-one planning sessions scheduled between manufacturers, buyers and distributors to review new items, marketing initiatives and strategic direction. The EPPS category-specific events held throughout the year consistently make business processes more efficient as well as save attendees valuable time and money.

EPPS manufacturer attendees have one-on-one 20 (or 40) minute planning sessions with distributors and buyers that attend the EPPS event. Each manufacturer is given a hotel suite to set up products, displays and related materials. Meetings, which take place in the manufacturer's suite, can replace the sales presentation in the buyer's office.

Additional items on the EPPS event agenda...

Buyers Expo Power Hall*: Manufacturer products can be displayed in a buyer's only ballroom where buyers not only see the product but also read a marketing summary about the products. If a buyer is interested in the item, scan cards for that item are pulled and a report is generated from all the products of interest. After the event is over, buyers and manufacturers will receive recap reports including what products buyers were interested in.
*Not all EPPS events have a Buyers Expo Power Hall

General Sessions: Presentations given by leading professionals that are designed to review category performance discuss growth trends and explore innovative new ways to develop the category.

Evening Dinners and Events: Evening events are scheduled to bring both vendors and buyers together in a fun, relaxing environment, as well as provide a networking forum.


Manufacturers
For manufacturers, EPPS is a highly effective forum, which will improve manufacturers' business, especially as it relates to middle and lower tier retailers. While a primary benefit of EPPS will be to improve sales, an even greater impact would result if you include your category development and brand people.

Prior to the event, ECRM inputs retailer new and promotional item forms into their proprietary software, MarketGate™, and also loads manufacturer color images and product information for the items, displays or planograms that manufacturers will be presenting.

At the event, your sales and marketing team present new items, promotional programs or marketing concepts. Retailers scan products or programs of interest and both parties document follow-up action required on MarketGate notepad computers.

After the event, each company is given a link to its own secured Meeting Follow-Up website where they may review meeting notes and download color images for items selected as well as product data to the retailer custom forms. You may give access to the site to your field representatives to streamline execution of programs.

Benefits for Manufacturers:
Streamlines sales and marketing function to improve speed to market and execution of marketing strategies particularly with middle and lower tier retailers.
Brand and category development people benefit from interfacing with an excellent cross section of retailers in a compressed and stimulating environment.
The sessions at EPPS can take the place of meetings back in the office saving time & travel expense. Executives have the additional benefit of seeing mid size & smaller accounts they may not typically see on a personal basis.
Marketing & Category development managers can lend their expertise to the trade while finding the proactive environment conducive to innovation.
Senior level sales people may lend their talents to the development of programs while learning from the trade how their sales organization is performing.
Manufacturers' sales are impacted positively as retail execution is improved.


Buyers & Distributors
For buyers and distributors, EPPS is an effective forum for the development of marketing strategies that is bringing significant benefits to leading retailer and consumer goods manufacturers such as Target, Wal-Mart, CVS, Walgreen's, Ahold, HEB, Procter & Gamble and Unilever.

Prior to the event, manufacturers load color images and product data into ECRM's MarketGate™ software for the items they wish to present. ECRM will also input retailer new/promotional item forms and vendor set up forms.

At the event, senior level sales and marketing executives present new items and promotional programs to buyers, category managers, DMM's and VP's in private one-on-one meetings, which take place in manufacturers suites. Buyers scan items of interest and both parties record pertinent information and follow-up action required on special notepad computers.

After the event, buyers/category managers are given access to their own private secured Meeting Follow-Up website. Buyers can click on a manufacturer name to review...
Buyer meeting notes
Manufacturer meeting notes
Items selected which include:
Marketing Information; color images, which may be downloaded for advertising; product data, which may be downloaded to retailer's custom new item forms. Forms are presented in PDF files so retailers may enter retails or other information prior to printing or downloading, as well as manufacturer contact information, including links to emails and phone numbers.
Benefits for Buyers & Distributors:
Buyer sales increase as the category focus facilitates development of improved programs.
Buyers can see a majority of category suppliers at one time and in one place.
The event environment is conducive to the involvement of senior level buyer managers with the buyers/category managers, enhancing sales as well as individual performance.
Category Manager/Buyer's time is favorably impacted because the event and online tools can eliminate appointments back in the office and redundancy in the processes.
The proactive environment of the planning sessions helps to breed creativity and innovation.


ECRM Website
ECRM is more than just the EPPS Events...ECRM-Online and ECRM's internet-based software, MarketGate, used throughout the year, can assist with the marketing and selling of products and bring efficiency to the consumer goods sales and marketing supply chain. By attending an EPPS Event, attendees are given access to the secured areas of the website including Meeting Follow-Up, Ad Comparisons, Product Catalogue, Contact Manager & Scorecard Manager. We have also added Food Service meetings to our calendar to bring the same efficiencies to the food service industry.

Meeting Follow-Up
EPPS event attendees us the Meeting Follow-Up area of the site to facilitate execution of marketing strategies discussed at the show. Review meeting notes, action dates as well as marketing information. Retailers and manufacturers may download product data into custom new item forms, acquire images for advertising, and communicate with each other via email links.

Product Catalogue
ECRMs proprietary software designed to streamline the sales and marketing function. Manufacturer product data and color images can be downloaded directly into retailer custom new item forms. PDF files of forms created can be reviewed, edited and then printed and downloaded.

New Items and Promotions
Manufacturers post new items and promotions on our site. Retailers can go to the site and download color images and product data to their custom new item forms.