Replies to post #833 on Innovative Food Holdings Inc (IVFH)

[robsaia]

Dave: That is very interesting because based on my partial dd to date, my numbers are close to what your friend's friend states. Correct me if I am wrong, but the bulk of revenue is made from an added premium per pound charged the end user. In reality, the added charge, typically anywhere from $0.80 to over one dollar per pound (per Joe JR. in interview several months ago) is peanuts when one considers spoilage. Working in restaurants myself for many years prior to becoming a commercial appraiser of real estate and businesses, reducing the shelf life by 4- to 7-fold in some cases will no doubt decrease the amount of money wasted from spoilage. So, in actuality, the added cost to the end user (e.g., restaurant chef) is really not a cost at all, but rather a savings. More importantly, perhaps, is the competitive advantage a restaurant will find by offering seafood (as an example) that was literally alive less than 24 hours earlier. Fresh is in. Have you ever gone to a sushi bar and ordered Giant Clam? If one looks at what is reasonable in terms of poundage sold per week - even with outside trained salespeople - and apply Chef Joe Jr. numbers (as rough as they may be), I think a very reasonable conclusion is that revenues in 2004 were likely in the range of $3 to $6 million. I would double that for 2005 - so we could be anywhere from $6 to $12 million based on this very rough estimate. I think this pretty much precludes the idea that revs are in the neighborhood of $100m, although perhaps some day we might be there. Again, its profitability that is the key, so I dont care if they are only pulling in $2 to $3 million, as long as the EPS shows at least 2 to 3 cent or (of course) more. At this point, my best gues is that we are are around bread-even, slightly below or slightly above, but certainly a higher pps is in order for us unless something negative completely comes out of the blue. However, if that were the case, I would not think that they would be that eager to show us the financials to get to the bb.