RE:Some questions and some thoughts First of all congrats on the timing! Nice and painless green gains for you . Probably up around 400% or more. Now for your questions . My answers are only from the information we have been given over time. For things like manufacturing what I wouldn't know is if Nevada is an addition or replacement. Things like that.
1.manufacturing: prior to Nevada announcement we had cryopharm in California making Tabletz for us (and our Cali thc products if they started) as well as using our ingredients and IP (money for us) to make their marbi melts , kali juice etc . From a previous NR we were told that Neuenergy is made elsewhere (can't remember if Arizona? Maybe Florida?). Now we have Nevada. Does this mean that cryopharm is still helping make Tabletz and/or our Cali thc products or just their own that we get paid for? I can only imagine that they'll still make our thc Cali products and theirs but I'm thinking (from Nevada NR) that Tabletz will now be exclusively made in Nevada . Even when the borders of 2 legal states touch , cannabis can not cross state lines due to federal prohibition (something states like California and Nevada were trying to change). This means that whichever state we go into will need its own manufacturing. From Oklahoma NR , they've already made a deal woth a third party manufacturer. This is their preferred business model to not have to carry the infrastructure costs of building manufacturing in every state or country we enter.
2. This brings us to capacity . We've been told numerous times that our current production rate was 144k tabs a day based on an 8 hr shift 5 days a week (I'd assume that might be besides cryopharms own capacity for their own products?). The latest investor presentation has capacity at 540k tabs a day plus a a good number of "sachets" (I'd imagine those are for powdered beverage products?). What I don't know is if that new higher production is "current capacity" or the available capacity of the Nevada building (then do we still have cryopharm making anything?).
3. I'm not sure exactly what your asking with your "or out to lunch " question, but your thoughts are exactly how the NR read. That they've paused the initial order to get this smaller rushed order out then resuming the initial order. If Nevada is to be the exclusive manufacturer for Tabletz then the delay makes perfect sense regardless whether we like that or not. The inpatient me hopes they started order in California and would complete it in Nevada , but regulations are sticky enough to begin not to mention with cannabis products . There's also all the testing at different times through production so they could have easily decided to start production in Nevada. Just because we got the news that day doesn't mean they started that exact day. Yeah the delays suck but the move was an excellent one business wise and shows the company's confidence to open that building up.
4. without more clear and direct guidance from the company , anything we come up with is only a guess. Again we can't be sure if the order started way back then or if they knew they wanted to go to Nevada and were waiting to close that. Having said that, we can piece together a rough idea of the order size by what they didn't say. By grammar "several " is "more than 4 so "several hundred thousand of each "(read both as confirmed by company) that could mean anything more than 400k sticks of each size (not each flavour). You'd think if it was let's say 700-800k each that the NR would have said something like "close to a million of each" or "with a combined total both sizes of over a million " etc. "Multi millions" could arguably be anything over $2 million. Where it gets confusing is the launching in your to 46k locations. It's not my place to tell Tabletz what to do but I'd never want to stock a store I couldn't keep stocked before next preset arrives . We don't k ow how fast they will sell but think that to start at least we need 2-3 months between orders (manufacture/test/package then ship 3-4 weeks) meaning that even only nominal sales each location needs at least a few 6 packs each flavour each size . So this leads me to believe that the launch will be a rolling one where each new order opens more locations while restocking the existing locations (read exponential order growth). My best guess is that the initial order will be 300-500k sticks of each size equaling approx $2.5-$5.5 million . Of course I'd be more than happy to be wrong and be blown away by a surprise announcement that order was $10-$15 mil and enough for all locations lol. It's just that imo most companies want news to sound as good as possible while still be true (so to me it then would have said "an over $10 mil order" and it didn't). Regardless if the product is well received and ends up in all locations (and stay there) then simple math say we are looking at very quickly tracking $50 million plus a year there ($500 revenue to us per Q X46,000 locations =$80 million +/year. Yeah I know that sounds crazy at the moment. Blame math not me.
5. Testing: Yes either in the Tabletz site and/or one of the japan NRs it explained all the testing. Cant remember exact number but something along the lines of
-testing initial batch of ingredients for purity
-randomized test during first run
-then perhaps every run
- another randomized testing for purity and consistency chosen from whole order
-and iirc one last testing just prior to shipping.
Sure this all sounds like overkill but it could be a good reason we got approved for such a hard market right when they decided to pause all other cbd product approvals. It's also what may help set us apart. Most edibles have both consistency and onset problems ( takes long to hit and never know how much your getting dose to dose). These problems become exasperated with cbd due to the lack of high effect so that many consumers have no idea how much cbd they are actually even getting. Our product is supposed to be exact dosing and fast onset /long lasting. Having a deal of independent testing approval that every single tab has exactly the ingredients we say it does (and free of pesticides etc) will most likely go a long way to helping instil consumer confidence in our products .
I hope this diatribe lol was at least somewhat helpful to someone in seeing the explosive potential we are sitting on here , and even explain why I am so bullish here. What does frustrate me (besides the long wait lol) is the lack of clear guidance. Delays are delays. That's life. What bugs me a bit is the deep dive needed just to guess things rather than be clearly told by the company what has caused x delays etc. Imo that would go a long way to instilling shareholder confidence. Or SHOW US THE MONEY lol. GLTUA in all our investment decisions !