Replies to post #103627 on Kona Gold Beverage Inc (KGKG)

[Fallingknife75]

Yep, that's how I read it.

They discontinued some small "unfavorable" distribution agreements as they were setting up large, "favorable", Tier 1 agreements. Then those large agreements were put on hold due to the COVID-19 outbreak. As things re-open, the company believes those agreements will be completed; that is why the revenue forecast remains $6-$8m for 2020.

It is understandable what they were trying to do, but the timing of events didn't work out so well with the shutdown's. It's unfortunate, but recoverable enough, just delayed things a bit.

The Company expects that revenue will increase in the following quarter as many contracts will come to fruition and product launches will occur. The Company recognizes that COVID-19 has had an impact on revenues in early 2020, but anticipates having a revenue projection of $6 to $8 million for the year ending December 31, 2020.

All the best,

Knife