'Just the fact that we tampered with their largest beauty brands would have carried enormous risk and I believe that at certain preset mile stones these royalty rates will change substantially.'
What makes you believe the above statement? Is it inside knowledge that the rest of us don't know? I'm really interested in a 100% honest answer from you. Typical industry standards dictate that royalty rates actually DECREASE with volume. Do you remember Abdm, Pman and Baker & Young posting the following Industry Guideline in relation to Royalty Rate tiers (this is not Copyright as it is freely available via Google):
So my point here is that the Royalty rate typically reduces with Volume and this approach is standard...unless you Know otherwise. Industry experts don't Know what is going on or what the existing negotiated royalty rates are, so I very much doubt you do.
In the end, history has attested time and time and time again, that it doesn't matter what you believe, it doesn't matter what I believe and it doesn't matter what anybody else believes...it only matters what OBJ delivers.
'It is very obvious to me that P&G is progressively building out technology into a major volume producing asset and when these rates get lifted it will create enormous on going revenues for our company.'
The existing negotiated rates will NOT get 'lifted' for existing products and already negotiated work plans. They will reduce IF volume increases and will only 'create enormous on going revenue for our company' IF they demonstrate HUGE volumes and become permanent shelf products, instead of or NOT seasonal plays. OBJ needs Volume, Volume, Volume to make any decent and tangible Revenues.
'All I have seen is a progressive roll out of more and more products, more brands into more countries and it is only expanding as we speak.'
More nonsense. If anything, our products have decreased. SK-II Magnetic Eye Wand is now defunct. SK-II Magnetic Booster is a seasonal product only and has generated minimal revenues and by all accounts and will also become a defunct product sometime in the near future also as it also represents a 1st generation product. Magnemask is our only product that is looking like possibly becoming a permanent shelf product, with only a partial launch to date and it also is a 1st generation product that is constantly 'out of stock' wherever it is currently stocked globally.
OBJ will not see any meaningful Revenue from Advanced/Integrated products or a Second Technology/Personalisation product for approximately 18 months to 2 years (allow for delayed launch, soft launch, selected country roll-out and royalties in arrears - at least 9 months); and that's if the launch timeline stays on track, which we already know is well and truly way behind. And that brings me back to my question: 'With approximately 4 million dollars in the bank and a current cash burn rate of approximately 2 million dollars per year with additional increases in OBJ's BoD size; is the OBJ BoD considering necessary capital injection options to keep OBJ primed for growth?'
With respect, nobody cares what Shareholders believe, how well they sleep at night, whether they think OBJ is a fantastic opportunity to accumulate, whether they are a long term investor & waiting for dividends or whether they still think OBJ is a bargain at 2 cents, the same as they thought it was the same bargain at over 10 cents. Yes, you are entitled to your perspective and if it's all the same with you, given your offered choice of 'take it or leave it'...thanks, but I will leave it.
I also wish OBJ the best and encourage OBJ's Bod to deliver just one of the other 15+ potential partnerships that have been peddled to OBJ's loyal Shareholder base over the last decade and a half. Just ONE!
The above is not what I think or believe. It IS the CURRENT FACTS.
(20min delay)