Dear Investors, Friends and Stakeholders,
In many ways, Q1 of this year felt like a springboard for what’s to come. Some exciting things came to fruition during the quarter but the most interesting and exciting parts of the quarter are what we were able to put in place for Q2 and beyond.
Most notably, we focused our energy during Q1 on being able to expand our product footprint outside of the cognitive domain and into multiple other aspects of health, with an initial focus on longevity.
During the quarter we completely overhauled the website to not only improve performance but also to reimagine the information architecture so we could begin presenting products and information across more aspects of health.
Beyond that, much of the work during the quarter was directly dedicated to launching our new longevity product called Eternus. We were able to finalize the formula, develop it in two product formats (capsule and powder sachet), source all the materials and send it into production as well as develop all the content needed for its launch. Since the launch actually took place in the early part of Q2 I won't speak much about the details of that other than to say it was more successful than we had even projected. The success of the launch is the result of all the preparatory work that went into its launch. This included enrolling more than 30 influencers to participate in the launch, develop entirely new marketing funnels and lining up press pieces to be included in the launch.
In addition to finalizing the formula and prepping the launch for Eternus, the product team was busy at work on the liquid nootropic shot. This formula was iterated a few times throughout the quarter and we believe we’ve now got a final formula. It’s just gone into final testing so we won't know for sure until that’s complete but it’s looking probable that we’ll begin prepping a launch of this new product during Q2.
This past quarter we were able to find and move into a new office which is much better positioned to support our ongoing growth. We were beginning to grow out of our previous offices. Now our new space is able to accommodate the ongoing growth of the team and simply feels better. You never realize how important simple things are like windows that open for fresh air. Now that we have windows that open and plants to look out on there’s a whole new level of excitement you can feel in the air.
Q1 was a big quarter for developing new wholesale sales channels. During Q1 we finalized approvals and went live with Pharmaca.com, Walmart.com and probably most excitingly we got approved to begin selling through the two largest practitioner networks Natural Partners and Emerson. Natural partners went live first and has already placed multiple re-orders for the product. Emerson is just now going live so we’ll have to see how well it goes. We’re anticipating a similar response to what we’ve been seeing with Natural Partners. This is an exciting channel for us as it appears to be one of the fastest growing channels we can put attention into. Additionally, this channel increases the level of credibility we have as a company as we onboard more physicians that are using the products with their patients.
Sales & Revenue
Revenue for the quarter was up slightly from the previous quarter but with substantially better profit contribution and ROI numbers. It was another decisive step on our path to profitability. The improvements in ROI and profit contribution are largely the result of the work we’ve done to improve the percentage of new customers that become subscribers. At the end of Q1 2018 our percentage of new customers that became subscribers was 61% and at the end of Q1 2019 it was 88%. Now that we have that dialed in we’re much better positioned to begin increasing our advertising efforts so our subscriber account can grow at an even faster pace going forward. Overall revenue comparison can be seen below:
New Video Content
We initiated three new video projects during Q1. The first is the following sales oriented video for Qualia:
The 2nd is the following sales oriented video for Eternus:
In addition to these videos, we also started work on our first video based educational course, on cellular energy and longevity. This educational course is going to be a four-part series that will help people understand how our cells work and what can be done to improve their energy output and cellular metabolism. One of the areas we get the most positive feedback from our community on is our approach to education. As a startup with limited resources, a lot of our education to date has been in written form or through podcasts. This online video education series is a prototype that we’ll be launching in the coming couple of weeks. If successful, we believe this will be a great way for us to introduce much larger numbers of people to our work and our brand through free education. This is also a great way to start the relationship with new users, creating trust and establishing ourselves as experts in the domain. Keep your eyes posted for upcoming announcements about the launch of our first online course.
It’s hard not to include more announcements about Q2 since it’s off to a really exciting start but I’ll leave those notes for the next update. As always, I’m deeply grateful for your support and your belief in our mission.
James Schmachtenberger, CEO
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