Replies to post #7738 on Inergetics Inc (fka NRTI)

[RobinIV]

I would also love to see a split up in product lines. In the end it will come down to the question if they can manage to get one of those brands flying high.
I think if one of the product lines, apart from MSE, has been selling exceptionally well, they might mention it as it would be an incredible achievement. But it will probably take some more time to build those brands.
By the way, I don't really appreciate that they are already referring to those product lines as "leading brands" in their PR's, but that could be just an American way of expression. I can't judge that, but it sounds a bit premature to me.
If they added 1M to the deferred revenue in Q4, I run to the fridge for a bottle of champagne!

[Capt_Smith77]

It seems as though everything has played out as feared.

Originally I had hoped for 1M or so in Q4 sales, with about 1.3M-1.5M in Q1 sales. Even with a lack of transparency between product sales, it would still give you a good idea if MSE is selling or not.

Some had argued that Q4 was historically a weak quarter for sales in this industry. Still, when you have a brand new product line you'd expect strong growth quarter over quarter. Not including a breakdown in Q4 sales left us all having to calculate the exact figures and estimates.

I never did understand how their initial stocking of Walgreens and other retailers could be seen as actual quarterly revenue, and it's clear that they never could state such in one quarter alone, at least from what I gather in today's PR, as they are continuously deferring revenues as the product actually sells. This isn't a bad thing for those that are investing in their company, because at least you have a much better idea if the product is selling or not, and your #s aren't lopsided because of initial stocking of product.

About their expenses.... Like I had feared months ago, the amount paid in royalties is simply way too much. Based on the last couple of quarters, it's my opinion that they should have never done the deal with Martha as she likely ends up being the only one that makes any $$$ off this deal. IIRC, I believe they're also paying out a dividend on top of all the admin and R&D expenses. All of these add up to one big deficit, and I simply don't see them breaking even anytime soon.

Maybe MSE is like any other rollout and just a slower process than most hope it would be. Still, as an investor you have to weigh the risks, and ask yourself when you believe they'll become profitable. You also have to wonder if they'll add any other product lines in the near future that will only increase admin/R&D expenses.