Question 1

I see your 2018 losses increased by 13.6% over that of 2017 even when your revenue showed an increased. Can you tell me why?

Accepted Answer

Hi Denis, the main driver of increased losses were investment in Wholesale to set us up for future growth (slotting to get into new accounts, lowered wholesale price to retailers to get to $7.99 - $8.49 SRP, inventory build, hiring brokers to sell into new accounts).  We also hired additional staff to optimize our current process and set us up for growth.

Question 2

Good day to you Jina: For my own planning purposes, when will this round end? Thank you

Accepted Answer

Hi Clinton, the round will end on Nov 28.  Thanks for your interest!

Question 3

I really love this company but could you please explain why the price per share is already $91.94 and how this is justified? As a comparison for another consumer goods company - the price per share of Starbucks, a company that is worth $114 billion and has over 30k stores worl...

Accepted Answer

Hi Christopher,Thank you for you interest.  The way we determined price is based the following.  Our valuation is $14.4M based on $4M of sales and Starbucks is $114B based on $24B of sales. The ratio of value to sales for us is about 3.6x while the ratio of Starbucks is 4.8x so we are valued more 'cheaply' vs. Starbucks.Even though the share price on paper is similar, Starbucks has more than a billion shares out there while we have less than 200,000.

Question 4

What are your gross margins like on the wholesale business? On the retail business? And what is your plan to get the company to profitability?

Accepted Answer

Hi Kyle,Our GM on Wholesale is currently 32%.  Retail is avg 68%.  We are forecasted to become profitable starting in Spring 2020 with increased volume/sales from new wholesale accounts and at least 1 new scoop shop.  Currently we have some fixed costs that are too high for our current size of business (HQ salary, fixed ops costs, broker fees, etc.) but as our revenue grows they will become a smaller % cost.  We also continue to optimize and lower our COGs for Wholesale as...

Question 5

Hello, do you have vegan options and do you have any future plans in this category?

Accepted Answer

Hi Ravi, Yes!  We've been featuring at least one vegan ice cream flavor each month in all of our stores.  This month is Cherry Elderflower with Dark Chocolate (with a coconut base).  In 2020, we are launching 2 vegan pint flavors and Safeway just approved these items this week!  We will be debuting them at Fancy Food Show SF in January.

Humphry Slocombe

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