WEBINAR STARTING SOON: The Calmer Co, page-4

Lucky you.

A recording should be released in the next couple of days.

There was so much in it, the most professional webinars to date.

For me the main points were (people can add whatever I have missed) -

• new vision recorded, changing focus to incorporate success on a global scale, through high quality kava and strong ESG
• kava, the story, the benefits both recreationally and therapeutically.
• record Q2 revenue, even with global out of stock event in February.
• $450k of sales in March which equates to an over $5m annual run rate. Two more similar quarters of similar growth will see the company at breakeven.
• growth trend looks set to continue with demand continuing to grow, over $19k worth of sales on April 29th.
• inventory levels at $1.5m, to help prevent another out of stock event during these high growth periods.
• expenses last quarter slightly higher due to inventory build, manufacturing and processing upgrade and also half yearly reporting. All in all expenses are tight and under control.
• the supply chain in Fiji to be scaled up x 2 - 2.5 times by end of year, supported by farmers and upgrades of processing equipment in Navua.
• Customs clearance here in Australia improved by up to 90 days due to new virtual inspection program, however more inventory will be held to avoid another out of stock event.
• Fiji kava have working relationship with all Fiji farmers and Fiji Government. Fiji working with Fiji government on kava regulations.
• the time, effort and money spent in Fiji building this supply chain would be virtually impossible for any other company to reproduce.
• Fijikava have grass roots programs with young Fijians, providing education and homes in exchange for farming and curation of the highest quality noble kava plants grown in accordance with specific requirements.
• Kava sold globally by Fijikava currently at 3% when compared to how much kava is consumed domestically in Fiji annually. Aiming to have that up to 7% by the end of the year.
• Retail sales in Coles strong, retail sales serves a dual purpose 1. awareness to change the perception of kava, i.e. if it is seen as available at a quality supermarket people will likely dismiss any negative perceptions about kava that they may have heard and 2. see it, you buy it and try it on a small scale, if you like it you buy more through Coles or go to the website.
• Taki mai shots selling well, but hard to get a read on demand at this stage due to initial bulk buy orders from Coles and restocking program.
• E-commerce drive in the US happening now, using similar marketing that has been proven successful here in Oz. In the US we have Amazon, Walmart and now Shopify. Management are anticipating a growth curve on the scale similar in Oz over the last 12 months but with more numbers based on the higher population in the US.
• The US has more freedom with regulatory control and new products are being developed, i.e. flavoured shots, effervescents, and gummies.
• Working on trying to get some of these new products into the Asia Pacific.
• Fiji sales in resorts and airports are doing very well.
• Danodan business also picking up attributing to a much higher percentage of US sales last quarter.
• Due to high growth, strong inventory build and quicker return of receipts we will not need the entire $3m approved earlier in the week at the ESG. Management always prioritising limiting dilution to shareholders whenever it can and if favourable will look at other finance options such as e-commerce platform finance, debt finance and equity raise.
• Management team are all working hard and are encouraged by the results of their work over the last couple of years.