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https://www.you tube.com/watch?v=rSqINyEsd0o&ab_channel=*********
Here's just some of my notes from the latest interview. Very good info from Dean! and a good crash course for any new holders.

Small Caps Interview July 20, 2021 Summary

·WineDEPOTis the underlying asset in DWV and is a technology platform business. Using technology to bring disruption to an industry ripe for digital transformation.

·Thetechnology platform is divided into 5 key components vertically integrated

·Eachone of the components has its own distinct revenue stream

oMARKET

§A B2B marketplace allowing suppliersto connect directly with trade buyers

§A more cost-effective route to market

oDIRECT

§Similar to MARKET, allows suppliersto connect directly with consumer sales channels such as Amazon, eBay,Vivino

§Driving incremental business bydrawing off the same inventory pool as MARKET in addition to the supplier’s ownDTC channels

oLOGISTICS

§This is where DWV launched thebusiness and management knows that to support the MARKET and DIRECT, they needan incredibly reliable logistics service

§In Dean’s words “a bit like whatAmazon has” – they have become a market dominant player by exceeding the consumer’sexpectations in speed, cost, and reliability of delivery

§LOGISTICS is all about underpinningthe rest of WineDEPOT’s tech platform

oCONNECT

§An ERP (enterprise planning platform)providing full visibility on their orders vs inventory across WineDEPOT’snetwork

§Usually something big businesses canafford but WineDEPOT basically is offering it a simplified version as a freesoftware applicationto the industry

§Allows businesses to automate a lotof processes like accounting, inventory management, and their orders

§Through CONNECT businesses can connect to theiraccounting systems, websites, POS

oLIQUIDITY

§Accelerate payments especiallywholesale & ensures credit terms are no barrier to sale

§For example: a supplier selling wineto a trade buyer has typical payment terms of at least 30 days or as much as180 days! LIQUIDY can allow suppliers to get paid as quickly as 3 days.

§EarlyPay is providing the white label solutionembedded into WineDEPOT’s tech platform

·Deliberatelylaunched the platform in stages as part of their disruptor strategy.

oUsedLOGISTICS to build presence and build relationships and to establish that underlyingneed to do business with WineDEPOT

§Lots of pain points in this sectionof the market

§Simultaneously used to build theinfrastructure needed to support other revenue components

§A smart way to acquire customer andproducts and build the business

§Most of the current revenues comefrom the LOGISTICS part of the business

oTheother parts of the platform have been pushed live (DIRECT / MARKET) in the pastcouple of months

§The revenue this arm will make willsoon eclipse LOGISTICS

§Every time there is a transaction inDIRECT / MARKET will also add revenue to LOGISTICS

§This is where it starts to compound

§DT’s gut feeling is that MARKET willbecome WD’s biggest source of revenue

oAustraliais where DT wants the platform to be up and running, consolidating, andbuilding presence.

oDThas aspirations to take the platform global and try to get a piece of that $300Bwine & alcohol market. Note: WD already in New Zealand

·Acquisitionof Parton to be part of LOGISTICS arm

oPartonservices the same customer group that WD work with but perform logistics to adifferent part of the market

o95%of WD volume are for consumer deliveries whilst 5% are for trade deliverieswhilst Parton does the opposite around 95% trade deliveries and 5% customer.

oPartonhas great capability in the trade delivery space

oBecauseof this difference there is basically no cannibalization of WD andParton’s growth!

oWDpreviously outsourced most of logistics activity to 3^rd partyproviders

oThe acquisition deals with WD’scurrent weakness in maintaining Service Level (speed of delivery) vs. rapid growth

oByhaving control of the logistics network can customer expectations be consistentlymet

oMeansLOGISTICS is now capital heavy but reminds us that this is the foundation stonethat other parts of the business are built out of

oLOGISTICSis all about volume and scale, WD has capability to plonk volume on top ofParton’s infrastructure to get it from barely profitable to very profitable

oIfWD were to grow the logistics arm on their own it would burn a lot of cash. Thisacquisition pushes forward that breakeven point by 18 months!

oDTexpects WD growth rate to continue at current rates for both Parton & WD

oDTmentioned Treasury Wine & Accolades really like what WD are doing and thefocus on technology, but previously couldn’t guarantee service levels.

oSomehave shied away due to fear of lack of control and ability to scale. Theacquisition takes away these barriers and opens up the opportunity for WDto take on the bigger players in the industry.

oPartonshave half as much customers as WD but twice as much volume because of some ofthese bigger players.

·Whereis the growth coming from now on? Why invest in DW8?

oTheSP got a little ahead of itself (hitting 20c)

oAsthe MC grew it popped up on the radar of fund managers / sophisticated investors– they started sharing information

oDTadmitted there was an obvious discrepancy between the market cap and revenue

oThisacquisition basically shores that up – another $15M in revenue on top of WD’sexisting revenues – which closes that gap between the market cap and SP. Takingaway any fear of this disconnect.

oTherevenue upside from the acquisition is substantial. Parton’s existing customerswill now see WDs offering. There is only a handful of overlap between Parton’scustomers vs WD customers.

oWD now has the business capability toservice the largest customers in the industry.

oDTbelieves there’s nothing stopping them now from acquiring these major accountswhich will lead to significant increase in revenue, volume, and other keymetrics that will have a material impact on SP.