GrowLife Inc (PHOT)

[Trained Monkey]

PHOT’s Equipment Side, Growing Like a Weed

For the last few weeks, focus by shareholders new and old has been on the ‘grow’ side of GrowLife’s budding business. Rightfully so, as the deal with CEN is potentially worth millions.
Let’s talk earnings, going forward. Specifically, in the equipment side things are stacking up and worth a once over IMO.

Growlife has been an equipment company for over 25 years. In Q3 2013 earnings report, PHOT reported 1.313M in net revenue. Link to Quarterly Earnings filing: https://research.scottrade.com/qnr/uploadhandler/z05a7100az0b803dc989b648fea32f45e80a6a85e1.htm

Coming into 2014, PHOT has added numerous assets in the equipment side of operations since the Nov. 3Q filing. These will be very accretive to earnings! Since the last earnings report:

Rocky Mountain Hydroponics and Evergreen Garden Center. Link to the 1/23 8k: https://research.scottrade.com/qnr/Reports/GetSecFiling?key=137-000107997414000060-6HRT3GKUDG7ANJ2S4V1DMBQA58&format=HTM
The gist of the acquisition:

PHOT now owns 100% of Rocky Mtn Hydro and Evergreen. In all, GrowLife acquired 6 brick and mortar stores in Colorado, Massachusetts and Maine, as well as an online business, which had profits of $94,404 in 2013.
Total revenue for these companies? $1.014M last reported quarter.

New store in Santa Rosa – GrowLife to Open New Santa Rosa Store Friday, October 25, 2013
https://trading.scottrade.com/quotesresearch/ScottradeResearch.aspx?page=%2fqnr%2fStocks%2fArticle%3fdockey%3d1-SN20131024008617-751O7MT1U8LATTGOV3CF9VVGH3%26searchTerm%3d%26searchAcross%3dAll%26timePeriod%3d150%26startDate%3d2013-09-07+19%3a14%3a24%26endDate%3d2014-02-04+19%3a14%3a24%26firstRow%3d15

Greners.com and brick and mortar reporting record sales – This is ‘word of mouth’ from posters here and customers. Numerous posts that the stores are busy, inventory continually moving. More to come when they report, surely.

Expedited delivery of the Stealth Grow – GrowLife Expedites Launch of Expanded Stealth Grow(R) Commercial Line to Address Rising Cannabis Demand and Shortages
https://trading.scottrade.com/quotesresearch/ScottradeResearch.aspx?page=%2fqnr%2fStocks%2fArticle%3fdockey%3d1-SN20140113003797-6TTBVTAMM7D40LV1IU789MLKCE%26

Deal to supply Fusion Pharm Pods, announced today – "The new line of professional components will be co-branded under FusionPharm's PharmPod(TM) brand name and GrowLife's Stealth Grow(TM) line of equipment. The first shipment of components is anticipated to be available for installation in FusionPharm's PharmPod(TM) system and to the general public through the GrowLife network of hydroponic stores and websites in February."
*The Stealth Grow sure is popular.
https://trading.scottrade.com/quotesresearch/ScottradeResearch.aspx?page=%2fqnr%2fStocks%2fArticle%3fdockey%3d1-SN20140204008231-3HNGO119F6IV4RQPFD0PL2GJU7

Takeaway:
Looking ahead, we see a 1.3M revenue increase substantially based on equipment ventures. Possibly as much as triple, as it will double the brick and mortar sales and revenue on Rocky Mtn and Evergreen alone. And, of course, existing marijuana business and sales have been going up since the 1st, as reported by national media.
This is to say NOTHING about the multi-million dollar revenue stream in CEN
This is to say NOTHING about the $27M annual revenue reported by RXNB, a company PHOT now owns 40%.
Both the above may dwarf the equipment aspect in the next few years.

Suffice to say, in addition to all the big grow ops and pharmaceutical acquisitions, equipment sales and projected revenue will spike in Q1.

GLTU