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Replies to post #14958 on Bitzio, Inc. (fka BTZO)
Bitzio – Democratique. Similar to our closest comparable, Sequential Brands Group (Nasdaq: SQBG: $12), we will grow from a result of both performance and acquisitions over time.
http://sequentialbrandsgroup.com/about-us/
SHARE STRUCTURE COMMENTARY: Confirmed OS is 1.4 billion. I believe it could be more like 1.75 billion at this point based on conversion that occurred a few weeks back.
Lexi Luu received 300 million common shares in July share exchange.
Emotion received 350 million shares in July share exchange.
Ex Ceo's wife and other affiliate received 200 million shares for release of Lexi debts to the company in the July exchange agreement(not sure if they still hold or not but assuming they will look to liquidate if they haven't).
Note: CLEO VII in February was set up as subsidiary and did not have a share exchange agreement.
Angie Daza, Hub Blanchette, and Marilu Brassington all received 50 million shares which vest quarterly over 2 years. Means approximately 106 million of that is currently locked up. (See Officer Compensation)
My best guess here is we are looking at a float of roughly between 600 million to 800 million based on estimated current OS and assuming ex CEO's wife and affiliate unloaded their exchange agreement shares last year.
This is my best estimate taking into account variables so anyone who can find anything I'm missing please feel free to chime in.
Total revenue for the third quarter ended September 30, 2014 increased to approximately $208,000 [I]Note:Q3 was a partial quarter due to acquisitions hitting in July
Our third quarter financial results reflect the first time in our history that we are able to report the consolidated fundamentals of our active brands under our new business model
Note: With only a partial quarter reported revenue potential is flying under the radar here
Marilu Brassington, Chief Financial Officer of Bitzio, commented, “We expect to continue to see strength in the fourth quarter, and are working aggressively on building upon our foundation so that we may grow not only organically, but through strategic acquisitions. On the capital front, we have continued to finance our operations through convertible debentures, and are actively seeking alternative strategies to minimize the dilutive impact to our stakeholders, including ourselves as founders who contributed assets to the Company in return for common shares. We expect to communicate to our investors on a more regular basis.”
The Company shall immediately issue to Angie Daza 50,000,000 shares of its common stock, which shall vest quarterly over a two-year period. If Cleo-branded products achieve $1 million in annual gross revenue, the Company will issue to Angie Daza common shares with a market value of $100,000. If Cleo-branded products achieve $2 million in annual gross revenue, the Company will issue to Angie Daza additional common shares with a market value of $100,000.
On July 17, 2014, pursuant to the Share Exchange Agreement, the Registrant entered into an Employment Agreement with Hubert Blanchette. The agreement provides that Mr. Blanchette will serve as Chief Executive Officer of Lexi Luu Design, Inc. for a term of five years. As compensation for these services, the Registrant agreed to pay Mr. Blanchette a salary of $150,000 per year, except that for the period through May 31, 2015 sixty percent of the salary will be satisfied by issuance of common stock at a per share value of $.0015. The Registrant agreed to issue 50,000,000 common shares to Mr. Blanchette upon his execution of the agreement, which will vest quarterly over two years. The agreement also provides that Lexi Luu Design, Inc. will pay Mr. Blanchette 5% of the contribution margin realized during the past half year.
On July 18, 2014, pursuant to the Share Exchange Agreement, the Registrant entered into an Employment Agreement with Marilu Brassington. The agreement provides that Ms. Brassington will serve as the Registrant’s Chief Financial Officer and as Chief Executive Officer of E-motion Apparel, Inc. for a term of five years. As compensation for these services, the Registrant agreed to pay Ms. Brassington a salary of $150,000 per year, except that for the period through May 31, 2015 68% of the salary will be satisfied by issuance of common stock at a per share value of $.0015. The Registrant agreed to issue 50,000,000 common shares to Ms. Brassington upon her execution of the agreement, which will vest quarterly over two years. The agreement also provides that the Registrant will pay Ms. Brassington 5% of the contribution margin realized on sales to current customers of E-motion Apparel.
CEO H. J. Blanchette, Bitzio continues the successful implementation of its business model, leveraging the strengths of its centralized organizational operations and distribution channels. Most recently, E-Motion Apparel, Inc joined Lexi Luu Designs in its partnership with Zulily.com, establishing a notable foundation for the brand's e-commerce presence. Additionally, to further consolidate resources, Lexi Luu Designs is transitioning operations to the Southern California area, whereby both brands will be operating in the same location, sharing all operational resources.
Lexi Luu Designs children's dancewear and Emotion Apparel’s women’s resort wear, both made in America, are now sold internationally. Through the business development efforts of Democratique management, both brands have achieved orders from retailers and e-retailers in international markets such as Australia and Turks and Caicos. Management continues to pursue additional markets overseas as part of the brands’ expansion initiatives.
“We are particularly excited about the margins we are able to generate, and when compared to our relatively low operating costs, are in a strong position to achieve cash flow positive status with only a small amount of organic growth. Our balance sheet reflects over $345,000 in current assets, most of which constitutes inventory that we have purchased to fulfill future sales. We are pleased with our ability to stabilize our operations given our limited financial resources, and continue to develop strategies to maximize our business quarter over quarter for the benefit of all stakeholders.”
Furthering their expansion domestically, Emotion Apparel recently contracted with Sheila Smith of Lit Studios. With 20 plus years in the fashion industry, Ms. Smith is leading Emotion Apparel’s expansion in the Western regions including Hawaii, Utah, Denver and more. With the addition of Lit Studios on board, the brand is positioned to reach a whole new customer base and increased market space.
SAHAJA, LLC
On February 18, 2014 the Company executed a non-binding letter of intent to acquire ownership of Sahaja, LLC. . Sahaja is currently engaged in the design, production and sale of apparel. The Company also agreed to provide loans to Sahaja, LLC totaling up to $100,000 as mutually agreed. As of September 30, 2014, $22,979 has been loaned to Sahaja but the acquisition had not yet been completed.
ZMJ DENIM
On March 24, 2014 the Company executed a non-binding letter of intent to acquire ownership of ZMJ Denim, Inc. ZMJ Denim, Inc is currently engaged in the design, production and sale of apparel. The Company also agreed to provide loans to ZMJ Denim, Inc. totaling up to $100,000 as mutually agreed. As of September 30, 2014, the acquisition had not yet been completed.
SKIPJACK DIVE & DANCEWEAR INC.
Skipjack Dive & Dancewear represents one of our next two strategic acquisitions. Skipjack Dive & Dancewear sells swimwear and divewear in all sizes, including plus size for more modest swimwear. In addition, the acquisition of Skipjack provides Democratique with manufacturing equipment, offering an additional revenue stream via subcontracting manufacturing to other fashion brands. Democratique expects to announce the executed LOI for Skipjack by the end of November 2014.
PUNKZ GEAR INC.
The second acquisition in the pipeline is Punkz Gear. This is a sister company of Lexi-Luu Designs Inc. Punkz Gear is a kids hip hop dancewear line for dance and hip casual wear. Punkz Gear is manufactured out of the Lexi-Luu Designs facility in Mesa, Arizona, and is also owned by our CEO, Hubert Blanchette. We expect to announce the executed LOI for Punkz Gear in December 2014.
AI
