So... Let me get this straight.Karbon Klean which just happens to have shareholders in common with DYA...... and the CEO of KK is also the CEO the provider of the blockchain software for the carbon credits empire that DYA is attempting to build ....
- and which prior to this announcement was the only preferred distributor for DYA
- and already was able to offer its guaranteed ROI leasing program to other resellers and customers, and
- claimed to have access to orders in excess of 100,000 units through its partnerships in Mexico
- and ordered 400 units in Q2 or 3 last year but only took delivery of 150 in 2019 and has not taken delivery of any of the 300 remaining units since then .....
- Is now granted US Trucking market exclusivity until 2024 provided they sell 150,000 units on some yet to be announced basis.....AND
- they persuaded DYA to establish another wholy owned company to finance the KK sales and marketing efforts to the tune of $1,092,000. JUST HOW DID THEY ARRIVE AT THAT NUMBER?
So riddle me this...... If you are KK and you really do have visibility on 150K units from large trucking companies that are "ALL EXPERIENCING THE BENEFITS OF THE HYDROGEN" and you still have those 100K units in Mexico in your pocket, why on earth would you give up 20 percent of your company for a measley 1 million dollars!?
This tells me that KK has zero belief in the numbers contained in this press release.
And if you are DYA, and you are approached by a distributor that so far has failed to take delivery of the orders they placed 6 months ago....Why would you ever appoint them as the exclusive distributor? And more importantly, why on earth would you give them $1 million and then accept another order for 3000 units when they still haven't taken delivery of the last 300!
DYA is now in the business of buying units from itself.
I believe JP Colin is confusing analogies. The razor blade business model implies that the customer was sold a product (the razor) at a substantial discount in order to get them to continue to buy the only blades that fit in the razor ...Perhaps he will expand on his comment.
Is DYA now assuming all of the risk by giving away the units in order to get the monthly payments? That's not the razor blade model. That is a financing model pure and simple.
And what financial institution will be the bag holder for all of these units that will be "given away" on these performance guaranteed leases? There is no mention of that in the announcement.
Assuming the old list price remains and the gross margins are still in place then some entity must finance the upfront manufacturing cost against the cashflow coming from those lease payments..... and lets not forget that there is now another set of fingers in the pie that requires a return on that investment too.
Companies that establish financing arms generally do so once the market for their product has been established and the volumes are such that they believe there is money to be made in the financing. That is certainly not the case here. Once again smoke and mirrors.
This announcement has all of the earmarks of previous fantasies. Thanks for the run up folks!